Central Petroleum Limited · ASX:CTP
Central Petroleum — Non-Deal Roadshow (February 2013)
19 slides from Central Petroleum's roadshow presentation, Mar 4, 2013
Slide 1: Central Petroleum: An Asymmetrical Risk/Reward Equation
For personal use only CENTRAL PETROLEUM An Asymmetrical Risk/Reward Equation Asia – Australia Roadshow 25 February 2013 – 7 March 2013
Slide 2: Disclaimer
Disclaimer 1.This presentation is not intended for prospective investors and does not purport to provide all of the information an interested party may require in order to investigate the For personal use only affairs of Central Petroleum Ltd (“Company”). This presentation does not attempt to produc
Slide 3: Central Petroleum Today
Central Petroleum Today For personal use only Central is positioned to become the leader among Australia’s emerging oil & gas plays, both conventional and unconventional. The next 12 months will see intensive, funded exploration over highly prospective ground transitioning Central from explorer to p
Slide 4: Asset Details – Underexplored and Highly Prospective
Asset Details – Underexplored and Highly Prospective For personal use only 3
Slide 5: Last Months
Last 12 Months For personal use only 1. Corporate objectives Implement fully funded exploration model using farm-ins Retain independent development and full control of Surprise 40% of recurring costs eliminated Board skill set widened Tenement renewals covered 2. Surprise discovery Exten
Slide 6: Next Months
Next 12 Months For personal use only 1. Corporate objectives The company aims to be a leading developer of unconventional oil/gas All exploration costs presently covered (evaluating options for Surprise development) 2. Surprise discovery Complete reserve report Immediate development of Surpr
Slide 7: Surprise Development
Surprise Development For personal use only Key Milestones Reserve Report to enable field development planning Announcement of Conceptual Development Plan Funding announcement Grant of Production Licence Key Equipment - FULLY PAID 2,000bbl tank storage on site All weather roads constructe
Slide 8: Surprise Development (continued)
Surprise Development (continued) For personal use only Development Approach Start production whilst de-risking and evaluating the larger longer term development possibilities through new appraisal and step-out drilling Use classic onshore stepwise staged/modular methods to avoid value destroying
Slide 9: Surprise discovery schematic
Surprise discovery schematic For personal use only 8
Slide 10: Strategic Funding Model
Strategic Funding Model For personal use only PAST CURRENT NEXT 12 MONTHS… • Under- • Santos, Total • Surprise • Outstanding • Exploration explored Farm-ins pay exploration & Central success creates assets for appraisal options value, future exploration increases vesting value funding • Unfunded ass
Slide 11: Risk Reward Equation – legs
Risk Reward Equation – 4 legs For personal use only $1.00 90c DJ Up to A$150m Santos Up to US$190m Total Carmichael 80c Farm-Out Joint Venture Risked 1 2 Valuation 70c Market $620m Cap 60c $200m Market 50c Cap $125m 4 3 DJ Carmichael Valuation 39c Potential at Surprise 40c Unfunded lease commitments
Slide 12: Exploration spend vs shares issued
Exploration spend vs shares issued For personal use only 1400 160 1200 140 1000 120 100 800 80 600 60 400 40 200 20 0 0 2006 2007 2008 2009 2010 2011 2012 Santos/ 2013 Total Cumulative Stage 1 Funded Program Historical # shares Issued (millions) Historical exploration $ spent (millions) 11
Slide 13: Valuation Rationale & Comparisons
Valuation Rationale & Comparisons For personal use only Strong Valuation Support $ EV / Net Acre - Aust Shale Companies with Farm-outs Central EV of $4.85 per acre substantially below $60 70 peers at current value. $ EV / Net Acre (Left Hand Scale) $50 Net Acreage 60 (Right Hand Scale) Central has t
Slide 14: Conclusion: An Asymmetric Risk / Reward Opportunity
Conclusion For personal use only An Asymmetric Risk / Reward Opportunity - 4 legs strongly de-risked probable chance of success high of at least 1 of the legs (if not all) - third party funded exploration program success translated directly to shareholders Funded exploration program significan
Slide 15: Contact Details
Contact Details For personal use only Central Petroleum Limited 56-58 Jephson St.,Toowong, QLD PO Box 1571, Toowong DC Qld 4066. Tel: +61 7 3181 3800 Fax: +61 7 3181 3855 Website: www.centralpetroleum.com.au 14
Slide 16: Appendix - Board of Directors
Appendix 1 - Board of Directors Highly experienced Board of Directors For personal use only Andrew Whittle Over 40 years experience in the oil exploration industry Geologist, BSc (Hons) 21 years Exxon Corporation in Australia, Singapore, Malaysia, Canada and the US. Chairman Richard Cottee Ove
Slide 17: Appendix - Management Team
Appendix 2 - Management Team For personal use only Internationally experienced management team Richard Cottee 30+ years of experience in the energy industry BA, LLB (Hons) Previously Managing Director of QGC prior to its acquisition by BG for $5.7 billion. Director & Chief Executive Formerly w
Slide 18: Appendix - Management Team (Cont.)
Appendix 2 - Management Team (Cont.) For personal use only Internationally experienced management team Daniel White 15+ years experience. BCom, LLB, LLM (Merit) Barrister and Solicitor; Supreme Courts of Western Australia & Queensland and High Court of Group General Counsel Australia. Solicitor
Slide 19: Appendix - Stage Farm-Out Details
Appendix 3 - Stage 1 Farm-Out Details Two Major Farm-out Transactions Announced – Exploration Set to Commence For personal use only The scale and pricing of these transactions validate the prospectivity of Central’s leases. These transactions cover around 30% of the company’s acreage and bring subst
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