Central Petroleum Limited · ASX:CTP
Central Petroleum — Blue Ocean Energy Day 2019
31 slides from Central Petroleum's conference presentation, Mar 26, 2019
Slide 1: Investor Presentation
Investor Presentation Blue Ocean Energy Day - 26 March 2019 Central Petroleum Limited (ASX:CTP)
Slide 2: Company snapshot
Company snapshot Listed Australian company (ASX:CTP) Growing oil & gas producer Recent connection to east coast gas markets (January 2019) Upgraded production facilities (over 40TJ/d capacity) 2 free-carry exploration drilling programmes Significant under-explored acreage position Transformational c
Slide 3: Company snapshot – key metrics
Company snapshot – key metrics Capital structure Reserves** Unit 1P 2P 3P Gas PJ 134 169 205 Net debt $75* Oil MMBBL 0.78 0.97 1.15 Equity $92 million million 45% 55% Central share gas sales volume growth 1,200 1,000 Total shares on issue: 711,029,976 800 Total shareholders: 7,937 Top 10 TJ per mont
Slide 4: Company snapshot – transformational change
Company snapshot – transformational change 2 March 31 March 1 September November August November 3 January 2006 2014 2015 2016 - June 2017 2018 2019 2017 Listed on the Acquired Acquired 50% Macquarie bid Raised $25 Completed Commenced Australian Palm Valley stake in of $96 million million in Gas sal
Slide 5: Company snapshot – share trading
Company snapshot – share trading 1 year share trading ASX:CTP Share price13 cents $0.19 West Mereenie Palm Valley 13 Gas supply through 8,000,000 26 well drilling well encounters NGP to east coast (22 March 2019) $0.18 and result strong gas flows commences 7,000,000 $0.17 Traded between 10.5 6,0
Slide 6: Company snapshot – top 20 shareholders
Company snapshot – top 20 shareholders 22 March 2019 Name Shares % 1 UBS NOMINEES PTY LTD 31,451,500 4.42% 2 MR CHRISTOPHER IAN WALLIN + MS FIONA KAY MCLOUGHLIN + MRS SYLVIA FAY BHATIA <CHRIS WALLIN SUPER FUND A/C> 17,571,648 2.47% 3 FANCHEL PTY LTD 16,392,081 2.31% 4 ROCKET SCIENCE PTY LTD <THE TRO
Slide 7: Assets
Assets Production and exploration portfolio CENTRAL PETROLEUM LIMITED (ASX:CTP) 7
Slide 8: NT operating assets
NT operating assets Dingo gas field 38PJ 2P* • Acquired in 2014 with Palm Valley • Completed surface facilities and 50km pipeline • Current capacity of 5TJ/d • Supplies direct to Owen Springs Power Station Palm Valley gas field 42PJ 2P* • Acquired in 2014 before NGP Mereenie oil & gas field (50%) 89
Slide 9: Exploration Portfolio
Exploration Portfolio Significant exploration footprint, over 200,000km2 Mostly gas prone, significantly underexplored Blue outline area under farmout with Santos (40% to 70% to Santos at completion), balance is 100% Central Southern Amadeus permits surround existing fields so we know the ba
Slide 10: Exploration – Dukas Prospect
Exploration – Dukas Prospect Frontier sub-salt play with ~520km2 closure and multi-TCF potential (1TCF = 1,000PJs) Exploration well to be drilled in Q2 CY2019 under a free-carry with Santos Santos farm-in 70% participating interest in Dukas (EP112) Other wells in the Southern Amadeus Basin (
Slide 11: Queensland Surat basin CSG – Range Gas Project
Queensland Surat basin CSG – Range Gas Project 77km2 CSG acreage for Australian domestic gas supply, surrounded by acreage held by Shell, Arrow and APLNG Targeting 150-180 PJ potentially recoverable Four year programme, comprising exploration wells and a production test pilot – up to $20 milli
Slide 12: Transformational Change in Production
Transformational Change in Production CENTRAL PETROLEUM LIMITED (ASX:CTP) 12
Slide 13: Northern Gas Pipeline (NGP)
Northern Gas Pipeline (NGP) The small NT gas market has been a constraint on Central’s growth The NT was connected to the east coast market via NGP on 3 January 2019 The east coast market is large and critically short gas The NGP has a capacity of 90TJ/d, with additional capacity by expansio
Slide 14: GAP completed to maximise east coast gas sales
GAP completed to maximise east coast gas sales Brownfield facility projects Central Share Gas Actual Sales / Forecast Capacity (TJ/day) materially reduce CapEx and 45 OpEx per unit of production Acquired Palm Acquired 50% 40 NGP Valley and of Mereenie going forward commencement Dingo September 35
Slide 15: Gas sales ramp-up activated
Gas sales ramp-up activated The step change in gas Central share gas sales volume growth sales at Mereenie and 1,200 NGP commencement Palm Valley is now visible 3 January 2019 1,000 January and February gas Includes pipeline sales averaged 37TJ/d 800 commissioning Mereenie upgrade gas sales (13P
Slide 16: East Coast Gas Market
East Coast Gas Market CENTRAL PETROLEUM LIMITED (ASX:CTP) 16
Slide 17: East coast gas market – Brisbane STTM
East coast gas market – Brisbane STTM The Short Term Brisbane ex-post gas price ($/GJ) $19.00 Trading Market (STTM) $18.00 reflects spot market $17.00 $16.00 pricing on the east $15.00 coast $14.00 $13.00 $12.00 Brisbane STTM prices $11.00 have ranged between $10.00 $9.00 $9 and $11/GJ over the
Slide 18: East coast gas market – LNG netback
East coast gas market – LNG netback LNG netback prices ACCC LNG Netback price series ($/GJ) $14.00 influence domestic gas $13.00 pricing $12.00 $11.00 Key pricing drivers $10.00 include foreign $9.00 exchange rates, global $8.00 energy prices and global $7.00 $6.00 LNG supply and $5.00 demand dy
Slide 19: East coast gas market – cost driven
East coast gas market – cost driven 2018 AEMO GSOO Production Cost Estimates 2P 2C Queensland’s LNG export projects Basin Project Developed Undeveloped Bass Bass 2.65 5.50 have pushed marginal production Bonaparte Blacktip 3.04 costs for new gas supply into Sydney Camden 2.40 Otway Casino Henry Ne
Slide 20: East coast gas market – summary
East coast gas market – summary The east coast gas market has become critically short on long-term gas supplies following the opening of 3 LNG facilities Central’s current observations of potential 2020 delivered term contract prices into the east coast are not out of line with the actual 2018 L
Slide 21: Future growth strategy
Future growth strategy CENTRAL PETROLEUM LIMITED (ASX:CTP) 21
Slide 22: Growth platforms
Growth platforms Exploration Asset acquisitions Value add projects CENTRAL PETROLEUM LIMITED (ASX:CTP) 22
Slide 23: Growth through exploration
Growth through exploration Exploration acreage is an opportunity for significant share price growth following commencement of the NGP Three key actions are currently being progressed to accomplish this: 1. Identify and explore the high-value exploration targets 2. Identify farm-out opportunities
Slide 24: Asset Acquisition strategy (E&P assets)
Asset Acquisition strategy (E&P assets) Ideally positioned for future permit releases and new E&P asset transactions: Australian small cap not conflicted by LNG new east coast competitor proven ability to explore and develop track record as a safe and responsible operator strengthened fi
Slide 25: Value add projects
Value add projects Opportunities for value add projects Optimisation: expand existing reserves, brownfield economics, operating efficiencies and debottlenecking etc. LPG production to access local high-margin LPG market Local oil refining to increase margins on oil and condensate Compressed
Slide 26: Near-term share price growth catalysts
Near-term share price growth catalysts CY 2019 Catalyst Q1 Q2 Q3 Q4 GAP completed Commencement of NGP (sales consistent with forecast) New contracts for 2020+ gas supply PV13 tie-in and production testing Santos plans to drill Dukas in EP112 Exploration drilling Range Gas Project (ATP 20
Slide 27: Capital structure strategy
Capital structure strategy Current total debt circa $90M (asset acquisition and GAP finance) Reduce current level of debt by $20 million this calendar year using free cash flow Refinance current debt facility with senior debt (completion of GAP and new sales could significantly lower interest
Slide 28: Positive Community Contribution
Positive Community Contribution 3 key employment strategies to sustain our NT Our current operations operations: achieve: 58% are local employees 1. Family Values for Working Families – maximise number of employees who can 30% of staff are Indigenous commute daily from their homes 40% of Alice
Slide 29: In summary
In summary Only oil and gas company with exploration and production in the NT Unique position to take advantage of the NGP and an attractive east coast gas market Significant increase in gas sales from existing assets generating free cash flow Opportunity through low cost conventional produc
Slide 30: 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 31: 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 McCrombie at Citadel- MAGNUS T: +61 (0)2 8234 0103 M: +61 (0)411 756 248 www.centralpetroleum.com.au CENTRAL PETROLEUM LIMITED (ASX: