Central Petroleum Limited · ASX:CTP
Central Petroleum — Corporate Update (October 2018)
32 slides from Central Petroleum's corporate update, Oct 3, 2018
Slide 1: ASX Announcement and Media Release: Company Update
ANNOUNCEMENT AND ASX ASX CODE: CTP MEDIA RELEASE 3 October 2018 Company Update Central Petroleum Limited (“Company” or “Central”) today announces an update on the Gas Acceleration Programme (“GAP”). The GAP has an objective of maximising gas sales into the east coast market following connection via
Slide 2: Ooraminna 3 deferral and GAP funding
ASX ANNOUNCEMENT AND MEDIA RELEASE – CENTRAL PETROLEUM LIMITED Page 2 The Company has also decided to defer the planned drilling of the Ooraminna 3 appraisal well to 2019. This timing provides an opportunity to optimise the Ooraminna appraisal well following West Mereenie 26 results (mineralisation)
Slide 3: Company Update
Company Update 3 October 2018 Central Petroleum Limited (ASX: CTP)
Slide 4: Notice and Legal Disclaimer
Notice and Legal Disclaimer To the maximum extent permitted by law: 1. This company update 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 c
Slide 5: Summary of Key Update Areas
Summary of Key Update Areas Summary overview of FY2018 annual results released 28 September 2018. Update on the Gas Acceleration Programme (GAP), including project status, project costs and the project funding strategy. This update follows a comprehensive review and reassessment of the GAP. De
Slide 6: Overview
Overview Strong foundation poised for growth CENTRAL PETROLEUM LIMITED (ASX: CTP) 4
Slide 7: Our Company
Our Company ASX Listed (“CTP”) with a current market capitalisation $92 million* Focus on onshore gas E&P in central and eastern Australia Operator of 3 onshore fields in the Northern Territory (NT) with oil and gas sales of circa 5.5PJe in FY18 Current reserves Reserves** Unit 1P 2P 2C ** N
Slide 8: Key achievements over the last 12 months
Key achievements over the last 12 months Gas sales volume increased by 46% focused on Free operating cash flow after debt service safe, reliable and responsible operations. contributing to exploration and growth activities. Materially progressed Gas Acceleration Mereenie facility upgrade well underw
Slide 9: FY 2018 annual results
FY 2018 annual results The FY2018 annual results are driven by new revenue from the Energy Developments Limited gas supply contract (from June 2017), capital raisings and expenditures associated with the GAP. Key Metrics Unit 2018 2017 Change* Net Sales Volumes: Natural Gas TJ 4,842 3,322 46% Oil BB
Slide 10: FY 2018 annual results and capacity outlook
FY 2018 annual results and capacity outlook Gas capacity could increase to up to 20,000 TJ per annum Gas capacity is (quadruple FY2018 expected to increase to sales) based on GAP circa 15,000 TJ per Phase 2* Gas sales volumes annum (triple FY2018 increased to a record sales) based on GAP * Following
Slide 11: Headline strategy
Headline strategy Maximise gas sales into the NT and east coast markets through our Gas Acceleration Programme (GAP) Take advantage of exploration, development and M&A opportunities in the NT and east coast Australia Accelerate exploration of newly awarded Surat Basin CSG acreage Leverage our capabi
Slide 12: Assets
Assets Growth portfolio covering exploration, development and production CENTRAL PETROLEUM LIMITED (ASX: CTP) 10
Slide 13: NT operating assets
NT operating assets * Net to Central Petroleum as at 30 June 2018 Dingo gas field 31.01PJ 2P* • Covering 20 blocks of EP82 • Gas facilities and 50km gas pipeline to Brewer Estate in Alice Springs • Supplies Owen Springs Power Station Mereenie oil & gas field (50%) 69.30PJ 2P* Palm Valley gas field 2
Slide 14: Exploration in granted permits
Southern Amadeus Joint Venture • Santos may drill Dukas Prospect (in Exploration in granted permits EP112) in Q1 CY2019 targeting Multi- TCF gas potential • Santos currently 40% - would move to 70% with Dukas • EP(A) 111, 124 50/50 JV EP115 • Follow up to Surprise oil discovery North Mereenie Block
Slide 15: Queensland CSG acreage
Queensland CSG acreage Awarded 29 August 2018, comprising 77km2 CSG acreage for Australian domestic gas supply, midway between Miles and Wandoan in the eastern Surat Basin North-eastern Walloon Fairway, surrounded by acreage held by Shell, Arrow and APLNG Targeting 150-180 PJ potentially recov
Slide 16: Roadmap
Roadmap Gas Acceleration Programme (GAP) update, exploration and appraisal, business development and near-term share growth catalysts CENTRAL PETROLEUM LIMITED (ASX: CTP) 14
Slide 17: Comprehensive review of GAP
Comprehensive review of GAP A comprehensive review of the GAP costs and funding requirements driven by: Management changes (new Acting CEO, new COO, new CCO) Completion of FEED for Palm Valley facility restart project Peer review of sub-surface modelling and field deliverability forecasts En
Slide 18: GAP to maximise initial east coast gas sales
GAP to maximise initial east coast gas sales Initially planned a 4 well GAP Status appraisal programme. 1. Mereenie upgrade In progress Evolved through analysis, which showed brownfield work Compressors serviced, control systems refurb. 2. Palm Valley restart underway, wireline well servicing underw
Slide 19: Ooraminna 3 appraisal well
Ooraminna 3 appraisal well Ooraminna 3 was scheduled to be drilled in November 2018 Decision to defer the Ooraminna appraisal well to 2019 Rationale for the deferral: Opportunity to optimise the Ooraminna appraisal well following WM26 results (mineralisation) and pending PV13 results Prior
Slide 20: GAP gas capacity and sales position
GAP gas capacity and sales position Gas capacity post upgrade Gas sales TJ/d Phase 1 Phase 2 Total TJ/d Total Mereenie 100% 44.0 **14.0 58.0 Existing Mereenie and Palm Valley**** 10.5 Mereenie 50% 22.0 7.0 29.0 Existing Dingo 4.4 Palm Valley 15.0 ***5.0 20.0 Total net to Central 14.9 Dingo 4.4 0.9 5
Slide 21: GAP funding requirement progression
GAP funding requirement progression Initial GAP concept Enhanced GAP through facility projects* Comprehensive review** September 2017: March 2018: June 2018: October 2018: • 4 Wells • 3 Wells • 3 Wells • 2 Wells • No facility project • 1 Facility project • 2 Facility projects • 2 Facility projects G
Slide 22: GAP funding progression
GAP funding progression Initial GAP concept Enhanced GAP through facility projects Comprehensive review September 2017: March 2018: June 2018: October 2018: • 4 Wells • 3 Wells • 3 Wells • 2 Wells • No facility projects • 1 Facility project • 2 Facility projects • 2 Facility projects GAP Funding $25
Slide 23: GAP investment – brownfield economics
GAP investment – brownfield economics Total investment ($M) Total plant capacity (TJ/d) GAP adds significant production capacity +89% GAP lowers the cost +20% of investment in capacity per unit 41 output 106 127 22 GAP will improve Acquisition GAP - Phase 1 Acquisition GAP - Phase 1 profitabil
Slide 24: GAP maximising east coast gas sales
GAP maximising east coast gas sales Connection to the east coast Oil & Gas Actual Sales / Forecast Capacity (TJpa equivalent) market is a catalyst for a 18,000 significant increase in gas sales 16,000 14,000 Installed capital cost per unit of production capacity 12,000 reduces with Mereenie 10,0
Slide 25: Appraisal and exploration
Appraisal and exploration Targeting Status Potential Completed - minor gas shows due Up to 120PJ of contingent West Lower Stairway 2 sandstone to mineralisation – review to assess resource estimated (NSAI Mereenie 26 technical alternatives 31 December 2015) Increase field Palm Valley Known gas in th
Slide 26: Business development
Business development In addition to increased gas sales through the NGP, we are actively progressing the following key growth opportunities: Tendering for new Potential local refining acreage releases in Potential LPG projects projects Queensland Market search for farm- Partnering with new gas in /
Slide 27: Near-term share price growth catalysts
Near-term share price growth catalysts FY 2019 FY 2020 Asset Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Upgrade/ restart Mereenie completion Mitigation of Mereenie Start supply Supply IPL at 20TJ/d until 31 December 2019 lateral through NGP pipeline Palm Valley constraint Complete drilling PV13 Awarded QLD CSG ATP2031
Slide 28: Strategic Priorities
Strategic Priorities Strategic position and key priorities CENTRAL PETROLEUM LIMITED (ASX: CTP) 26
Slide 29: Strategic position
Strategic position Highly experienced management team Proven capability in exploration, development and operations Poised to almost triple gas sales in late 2018 with the commencement of the NGP Significant exploration permit acreage position in the NT Well placed to take advantage of sign
Slide 30: Key priorities
Key priorities Maintain our focus on safety first Continue to operate in an environmentally responsible manner Continue to make a positive contribution to the communities in which we operate Maximise gas sales into NT and east coast markets Drive exploration and appraisal of existing portf
Slide 31: Positive Community Contribution
Positive Community Contribution 3 key employment strategies to sustain our NT operations: Our current operations achieve: 1. Family Values for Working Families – maximise number 60% are local employees of employees who can commute daily from their homes in Alice Springs 30% of staff are Indigeno
Slide 32: Contact and Further Information
Level 7, 369 Ann Street Brisbane QLD 4000 Australia +61 (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: