Central Petroleum Limited · ASX:CTP
Central Petroleum — Burrells Stockbroking Investment Briefing 2019
28 slides from Central Petroleum's conference presentation, Jun 1, 2019
Slide 1: Investor Presentation
Investor Presentation Burrells Stockbroking Investment Briefing – 1 June 2019 Central Petroleum Limited (ASX:CTP)
Slide 2: Central's story on a page
Central’s story on a page Where to next: Optimise production assets and evaluate near field Where we are opportunities. now: Undertaking 2 significant Strategy shift Gas Acceleration free-carry exploration Programme (GAP) programmes this year. in 2014: successfully completed Execute new gas supply W
Slide 3: Company snapshot
Company snapshot Listed Australian company (ASX:CTP) Growing oil & gas producer Connection to east coast gas markets (January 2019) Upgraded production facilities (over 40 TJ/d capacity) 2 active exploration drilling programmes Significant under-explored gas-prone acreage Transformational change dri
Slide 4: Company snapshot – key metrics
Company snapshot – key metrics Capital structure Reserves** Unit 1P 2P 3P Net debt Gas PJ 134 169 205 $75M* 42% Oil MMBBL 0.78 0.97 1.15 Equity $103M Central’s gas sales (TJ/d) 58% 40 35 Total shares on issue: 712,930,962 30 Connection to the Total shareholders: 7,928 Top 10 Shareholders 25 east coa
Slide 5: Company snapshot – transformational change
Company snapshot – transformational change 2 March 2013 31 March 1 September August November 3 January March 2006 2014 2015 2017 2018 2019 quarter 2019 Listed on the Undertook a Acquired Acquired 50% Raised $25M Completed Step change Significant Australian new strategy Palm Valley stake in in equity
Slide 6: New Access to Market
New Access to Market CENTRAL PETROLEUM LIMITED (ASX:CTP) 6
Slide 7: Northern Gas Pipeline (NGP)
Northern Gas Pipeline (NGP) Under-explored gas-prone basin with proven hydrocarbon system from 3 producing fields Central has historically been severely constrained by the small NT gas market Gas market constraints limited the potential for new gas exploration opportunities The NGP opened on
Slide 8: East coast gas market – summary
East coast gas market – summary The east coast gas market has become critically short on long-term gas supplies following the opening of 3 LNG projects in 2015 (LNG is ~2x east coast demand) Delivered east coast gas prices appear broadly consistent with the ACCC estimate for 2018 LNG netback pri
Slide 9: East coast gas market – Brisbane STTM
East coast gas market – Brisbane STTM The Short Term Brisbane ex-post gas price ($/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 10: East coast gas market – cost driven
East coast gas market – cost driven 2018 AEMO GSOO Production Cost Estimates 2P 2C Queensland’s LNG export Basin Project Developed Undeveloped Bass Bass 2.65 5.50 projects have pushed marginal Bonaparte Blacktip 3.04 production costs for new gas Sydney Camden 2.40 Otway Casino Henry Netherby 2.00
Slide 11: Assets
Assets Production and exploration portfolio CENTRAL PETROLEUM LIMITED (ASX:CTP) 11
Slide 12: Valuable operating assets
Valuable operating assets Dingo gas field 38PJ 2P* • Acquired in 2014 with Palm Valley • Completed surface facilities and 50km pipeline • Current capacity of 5 TJ/d with potential to expand production • Supplies direct to Owen Springs Power Station Palm Valley gas field 42PJ 2P* • Acquired in 2014 b
Slide 13: Attractive Exploration portfolio
Attractive 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
Slide 14: Dukas-1 exploration well
Dukas-1 exploration well • Potentially multi-TCF prospect with several “look-alike” structures in the basin • 2 wells have previously encountered hydrocarbons and helium in sub-salt play in the basin • Dukas-1 exploration well drilling ahead with news flow anticipated from mid-year Location of Dukas
Slide 15: Queensland Surat basin CSG – Range Gas Project
Queensland Surat basin CSG – Range Gas Project • 77km2 CSG acreage in Queensland surrounded by Shell, Arrow and APLNG • Targeting 150-180 PJ* potentially recoverable (75 – 90 PJ net to Central)* • Drilling programme to commence in June quarter, with news flow anticipated from mid-year • If successfu
Slide 16: Transformational Change in Production
Transformational Change in Production CENTRAL PETROLEUM LIMITED (ASX:CTP) 16
Slide 17: Gas sales volume
Gas sales volume Central’s gas sales (TJ/d) 40.0 • Total oil and gas sales of 3.7 PJE in March 35.0 quarter 30.0 Connection to the east • Gas sales averaged 38.9 TJ/d (3.5 PJ) in coast gas market on 3 March quarter, nearly 3x FY2018 average 25.0 January 2019 20.0 of 13.3 TJ/d 15.0 • Current sales re
Slide 18: Key economic metrics (March webinar)
* Refer webinar presentation (March 2019 Quarterly Review) released by the Company on 14 May 2019 for more Key economic metrics (March webinar) detailed explanation of metrics presented on this page. ** Sustaining capex and recurring exploration could be in the order of $2.5M/quarter versus 3.5PJ sa
Slide 19: Future growth strategy
Future growth strategy CENTRAL PETROLEUM LIMITED (ASX:CTP) 19
Slide 20: Future growth platforms
Future growth platforms Exploration Asset acquisitions Value add projects CENTRAL PETROLEUM LIMITED (ASX:CTP) 20
Slide 21: Growth through exploration
Growth through exploration Gas-prone exploration portfolio with significant upside potential now connected to a critically short east coast gas market Three key activities currently underway: 1. Identify and explore the high-value exploration targets 2. Identify farm-out opportunities to acceler
Slide 22: Asset Acquisition (E&P assets)
Asset Acquisition (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 financial c
Slide 23: 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 24: 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) PV13 tied-in and production testing underway Santos currently drilling Dukas in EP112 New contracts for 2020+ gas supply Exploration drilling Range Gas P
Slide 25: 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 26: In summary
In summary Only oil and gas company with exploration and production in the NT Significant underexplored gas-prone exploration portfolio across proven and prospective oil and gas acreage Uniquely positioned to supply the critically short east coast gas market 2 major free-carry exploration dr
Slide 27: 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 28: 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:
Central Petroleum — Burrells Stockbroking Investment Briefing 2019 on 6ix