Central Petroleum Limited · ASX:CTP
Central Petroleum — Q4 2019 Earnings Presentation
25 slides from Central Petroleum's earnings presentation, Feb 17, 2020
Slide 1: December 2019 Quarterly Update
December 2019 Quarterly Update 17 February 2020 Central Petroleum Limited (ASX:CTP)
Slide 2: December quarter highlights
December quarter highlights Sales volumes up 6.7% to 3.7 PJE Revenue up 7.5% to $18.5M Announced a major exploration programme for CY2020 to be funded via a farm out New joint gas sales agreement signed with AGL (1 January start) Range gas project progressing toward FID Since the end of th
Slide 3: Strong CY2019 Financial Performance
Strong CY2019 Financial Performance March June Sept Dec Metric Unit Comment Qtr. Qtr. Qtr. Qtr. Sales volume PJE 3.7 4.0 3.5 3.7 Includes the gas over-lift at Mereenie and purchased gas sold. - includes overlift PJE 0.6 0.4 - - Repayment of overlift gas will begin from the March 2020 quarter. Sales
Slide 4: Extended finance facility
Extended finance facility Existing facility term extended by 12 Accelerated debt repayments months to September 2021 Loan facility extended for Refinancing facility reduces from $70M 12 months September 2020 to $62M September 2021 Creates efficiencies Maturity aligns with Project Range finan
Slide 5: Field Performance Review
Field Performance Review CENTRAL PETROLEUM LIMITED (ASX:CTP) 5
Slide 6: Mereenie Field Gross Gas Production
Mereenie Field Gross Gas Production GAP investment in late 2018 enabled higher production Mereenie Gross Gas Sales 60 capacity in 2019 through existing well stock (>50TJ/d in Potential average production H1 2019) NGP commencement capacity over time 50 Market Existing wells are almost exclusively
Slide 7: Palm Valley Field Gas Production
Palm Valley Field Gas Production Field Recap Palm Valley Gas Sales Tight gas with natural fractures – effectively segments the reservoir into a 16 series of poorly connected ‘smaller reservoirs’ Equipment servicing 14 Use horizontal wells to intersect more natural fractures and access several
Slide 8: Portfolio Equity Gas Production
Portfolio Equity Gas Production Central’s Portfolio Equity Gas Sales Potential to gravitate around average equity 45.0 Potential average production gas production across portfolio of between capacity over time 40.0 12 – 13 PJs/year (excluding oil) Long production lives: Gas reserve life >11 35.0
Slide 9: Gas Contracting Strategy
Gas Contracting Strategy CENTRAL PETROLEUM LIMITED (ASX:CTP) 9
Slide 10: Gas Contracting Strategy
Gas Contracting Strategy Position expected after new wells Current position planned later this year Production Capacity (TJ/d) Firm sales to be contracted Existing Firm Contracts Conceptual chart – not to scale Time CENTRAL PETROLEUM LIMITED 10
Slide 11: Gas Markets and Sales
Gas Markets and Sales CENTRAL PETROLEUM LIMITED (ASX:CTP) 11
Slide 12: Weak spot gas markets
Weak spot gas markets 1 Year Spot Market Pricing Sales below 2019 levels are 12.00 6.00 anticipated in the near term: 10.00 5.00 Weak spot gas market conditions Declining production from existing wells 8.00 4.00 prior to production adds US$/MMBtu A$/GJ Sales to increase following new 6.00 3.
Slide 13: Weathering low gas price cycles
Weathering low gas price cycles Solid financial foundations: Quality operating assets with demonstrated strong cash flow ~10PJs / year of gas under fixed-price long-term contracts. ~85% of contracted gas under Take-or-Pay arrangements Long term gas market still appears strong – primary tar
Slide 14: Range Gas Project
Range Gas Project East coast gas CENTRAL PETROLEUM LIMITED (ASX:CTP) 14
Slide 15: Range Gas Project progress
Range Gas Project progress Range Gas Project acreage is 77km2 with 270 PJ 2C Resource* surrounded by major CSG developments and infrastructure Project office established in Brisbane with joint venturer – Incitec Pivot Planning well advanced for 3 well pilot to be drilled in next quarter (Q2) P
Slide 16: CY2020 Exploration Programme
CY2020 Exploration Programme CENTRAL PETROLEUM LIMITED (ASX:CTP) 16
Slide 17: CY2020 Exploration Programme
CY2020 Exploration Programme Five high-graded drillable prospects targeting: Unit Mean1 Risked Mean1 Gas Petajoules 505 205 Oil Million barrels 29 9.5 Two appraisal tests targeting another 54 PJ2 of gas Planning work is underway: Finalising well designs Ecological assessments undertaken
Slide 18: Lower Risk / High Potential
Lower Risk / High Potential CENTRAL PETROLEUM LIMITED 18
Slide 19: Farm out process underway
Farm out process underway The estimated ~$50 million cost of the proposed CY2020 exploration programme is to be funded by a farm-out of the exploration programme and minority interests in the producing NT gas and oil fields. Flagstaff Partners appointed as advisors for the farm-out Strong intere
Slide 20: Dukas-1
Dukas-1 CENTRAL PETROLEUM LIMITED (ASX:CTP) 20
Slide 21: Dukas-1 Current Status
Dukas-1 Current Status Dukas-1 is located approximately 175km south Play Element Presence west of Alice Springs with multi-TCF gas potential (Central interest is 30%) Presence of hydrocarbons in Source mud gas Currently suspended at 3,704m just short of the target – encountered high formation pr
Slide 22: Summary
Summary CENTRAL PETROLEUM LIMITED (ASX:CTP) 22
Slide 23: Key Takeaways
Key Takeaways Strong operating performance and cash flow provides a foundation for long term growth Average gas sales in the range of 12 PJ to 13 PJ each year as new wells are added periodically Soft spot market conditions and field decline expected to reduce sales until the new wells are adde
Slide 24: Notice and legal disclaimer
Notice and legal disclaimer To the maximum extent permitted by law: 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 affairs of Central Petroleum Ltd (“Company”). This presen
Slide 25: Contact and Further Information
Level 7, 369 Ann Street Brisbane QLD 4000 Australia +61 (0)7 3181 3800 Contact and Further Information Investor and media enquiries: info@centralpetroleum.com.au Helen McCombie at Citadel- MAGNUS T: +61 (0)2 8234 0103 M: +61 (0)411 756 248 www.centralpetroleum.com.au CENTRAL PETROLEUM LIMITED (ASX: