Slide 1: Opportunities for NT Gas on the Eastern Seaboard
Central Petroleum Limited For personal use only Opportunities for NT Gas on the Eastern Seaboard SEAAOC 2016 ASX:CTP
Slide 2: The NGP is being Built
The NGP is being Built. For personal use only THE BENEFITS • NT unlocked by NGP – market constraint is lifted. • Only onshore gas pays royalties to the NT Government – source of revenue independent of Canberra. • If Central operated fields fill the balance of the NGP, an extra $10 million p.a. will
Slide 3: Onshore Means Permanent Jobs
Onshore Means Permanent Jobs. For personal use only • 54% of our staff are locally employed If NGP reaches full capacity with CTP gas then this will rise to 75%. • 26% of our staff are indigenous. • 40% of Alice Springs’ electricity is generated using CTP gas. • $1.5M extra local economic activity
Slide 4: Central at a Glance
Central at a Glance. For personal use only Central Petroleum Limited (“Central”) is an oil and gas explorer and producer with technical expertise over the on-shore basins of Central Australia. Central’s Core Objectives: • Continue to develop technical excellence in Central Australia’s oil and gas ba
Slide 5: Central Operated Gas Fields
Central Operated Gas Fields. For personal use only Central’s Operates 3 Producing Fields: • Mereenie • Palm Valley • Dingo Current Reserves (Gross JV) * • 207 PJ of 2P • 234 PJ of 2C Production Capacity (Gross JV) • All Fields ~45 TJ/d • All Facilities ~65 TJ/d Appraisal program • 5 additional reser
Slide 6: Revenues Timeline
Revenues Timeline. For personal use only $70 Revenue potential based on existing uncontracted gas reserves. $60 $50 Mereenie Reserves Upgrade $40 Revenues $m 5.2PJ pre-paid gas sale Northern Gas Pipeline agreement with Announcement Macquarie Bank. $30 Acquisition of 50% of Mereenie Oil & Gas field f
Slide 7: Northern Gas Pipeline
Northern Gas Pipeline. For personal use only Jemena is constructing a 622km pipeline linking the NT to the east coast market at a cost of around $800 million A 12-inch pipeline has been selected, initially capable of 90TJ/d (potential to increase capacity up to 160TJ/d with compression) Work h
Slide 8: How Can Central Respond To The Market?
How Can Central Respond To The Market? For personal use only By utilising our significant gas reserves which are available now and do not require Fraccing. Other Appraisal Further Low Risk Appraisal Targets (supply Exploration Target: post 2018): Targets (supply Existing Potential to quickly post 20
Slide 9: ACCC Inquiry into the East Coast Gas Market
ACCC Inquiry into the East Coast Gas Market. For personal use only The ACCC released its Key Findings Inquiry into the east coast gas market in April 2016: 1 New gas supply is urgently needed • Comprehensive and “fully informed” New suppliers are 2 urgently needed assessment of the east Need to rest
Slide 10: ACCC Inquiry into the East Coast Gas Market
ACCC Inquiry into the East Coast Gas Market. For personal use only New Capital Investment Required Now - CTP has sufficient gas to supply existing domestic and LNG contracts through 2018. - Undeveloped supply needs to be brought to market from 2018. This is at serious risk through moratoriums, ineff
Slide 11: It is not about Renewables
It is not about Renewables. For personal use only 1 million people employed directly in these gas dependent jobs SA electricity crisis 2/3 drop in gas used in power generation 11 CTP: Developing Northern Australia.
Slide 12: The Gas Shortage is Real
The Gas Shortage is Real. For personal use only • Reserve downgrades abound • Sixth train yet to be commissioned • When LNG price recovers the impact will be greater • Seen $44.90/GJ intra-day high spot gas in Victoria • Delivered prices risen by over 100% • YET… There is a two-thirds reduction in o
Slide 13: COAG Meeting
COAG Meeting. For personal use only • On 19 August 2016, COAG met and moved towards enacting ACCC findings. • Gas Market Reform Group, headed by Dr Michael Vertigan, formed to report back at December meeting. “The ACCC found that there were few constraints on the behaviour of existing pipeline opera
Slide 14: Theory of Resource Industry
Theory of Resource Industry. For personal use only • Best resource develops first to underwrite capital for infrastructure. • More expensive resource then able to develop on the back of infrastructure. • Price is market clearing mechanism. • The price signals must go back to where the capital (parti
Slide 15: Gas Pipeline Maturity
Gas Pipeline Maturity. For personal use only A mature pipeline has had its capital cost of building the pipeline substantially recovered from past revenues. ~80% of pipelines used by Central to deliver gas to domestic customers on the Eastern Seaboard are mature pipelines (>15 years old). Matu
Slide 16: Gas Pipeline Coverage
Gas Pipeline Coverage. For personal use only Most of the existing mature pipelines are unregulated (see adjoining map). This is due to the existing coverage test not being adequate to capture these pipelines – this needs to change first. Even if covered, there are no effective economic regulat
Slide 17: NT – The Future is Beckoning
NT – The Future is Beckoning. For personal use only Establish a NT onshore gas industry • Major local employer. • More indigenous development. • Increased local economic activity. • Independence from Canberra fiscal allocations. • Diversified income for pastoralists. LET THE FUTURE BE A GAS GAS GAS
Slide 18: Contact Us
© 2015. All rights reserved. Central Petroleum Limited | ABN 72 083 254 308 | centralpetroleum.com.au Contact Us For personal use only Richard Cottee Managing Director & CEO Ph: +61 (0) 7 3181 3800 | Fx: +61 (0) 7 3181 3855 Level 7, 369 Ann Street, Brisbane, QLD 4000 GPO Box 292, Brisbane, QLD 4001
Slide 19: Disclaimer
Disclaimer For personal use only 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 affairs of Central Petroleum Ltd (“Company”). This presentation does not attempt to produc