Central Petroleum Limited · ASX:CTP
Central Petroleum — Investor Presentation (August 2017)
30 slides from Central Petroleum's investor presentation, Aug 10, 2017
Slide 1: Closing the Gap (Gas Acceleration Programme)
For personal use only CLOSING THE GAP (Gas Acceleration Programme) Mitigating the Australian Energy Crisis “Never let a good crisis go to waste” – Churchill NOT FOR RELEASE OR DISTRIBUTION IN THE UNITED STATES
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS For personal use only Nature of this document This presentation has been prepared by Central Petroleum Limited (Central or Company) in relation to a proposed pro rata non-renounceable entitlement offer (Entitlement Offer) of new shares to be made under section 708AA of the Corp
Slide 3: Cautionary Statements: Disclaimer
CAUTIONARY STATEMENTS For personal use only Disclaimer No representation or warranty, express or implied, is made by Central in respect of the information contained in this presentation. Except for statutory liability which cannot be excluded, each of Central, its directors, officers, employees, adv
Slide 4: Cautionary Statements: Past Performance
CAUTIONARY STATEMENTS For personal use only Past performance Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of the Company’s views on its future financial performance or condition. Investors
Slide 5: Equity Raising Overview
EQUITY RAISING OVERVIEW For personal use only ● Fully underwritten equity raising to raise up to approximately A$27.2 million, comprising: – A 15% institutional placement to raise up to approximately A$9.2 million1 (Placement); and Offer Size & Structure – A 5 for 12 pro-rata non-renounceable entitl
Slide 6: Sources and Uses of Funds
SOURCES AND USES OF FUNDS For personal use only Sources $m Uses $m Cash balance at 30 June 2017 per Quarterly Report 5.5 Mereenie – drilling of two lateral appraisal wells 10.0 Cash raised from Placement 9.2 Palm Valley – drilling of one lateral appraisal well 10.0 Cash raised from Entitlement Offer
Slide 7: Equity Raising Timetable
EQUITY RAISING TIMETABLE For personal use only Date (AEST1 unless otherwise stated) Announcement of Equity Raising Thursday 10 August 2017 Central Shares begin to trade on an “ex-entitlement” basis Tuesday 15 August 2017 Record Date for determining Eligible Shareholders under the Entitlement Offer W
Slide 8: Company Snapshot
COMPANY SNAPSHOT Central Petroleum Limited is an Australian oil and gas explorer and conventional producer with a For personal use only focus on supplying the domestic gas market Share price and related metrics1 Licence areas ASX listing code CTP Area Location Ownership Share price $0.12 Production
Slide 9: Project Locations
PROJECT LOCATIONS Mereenie 50% For personal use only Palm Valley 100% Ooraminna 100% Dingo 100% 9
Slide 10: The Story So Far
THE STORY SO FAR Preparatory work on Gas Acceleration Programme (“GAP”) aimed at a low-risk cost-effective drilling For personal use only programme with the objective of substantially increasing our potential sales gas available for the east coast Oct March Aug April June Sept Nov 2013 2014 2014 201
Slide 11: The Story So Far (Cont.)
THE STORY SO FAR (CONT.) Closing the GAP still to come… For personal use only April June Aug Dec Jan April July 2016 2016 2016 2016 2017 2017 2017 Closing the GAP ACCC Inquiry Gas Sale and Pre- COAG Commission Vertigan Macquarie EDL contract Update released purchase Vertigan recommends acquires 50%
Slide 12: Closing the GAP - The NGP Is Being Built
CLOSING THE GAP - THE NGP IS BEING BUILT For personal use only • Jemena is constructing and is contractually committed to build a 622km pipeline linking the NT to the east coast market at a cost of around $800M • A 12-inch pipeline has been selected, initially capable of 90TJ/d (potential to increas
Slide 13: Operational Update
OPERATIONAL UPDATE Central’s Gas Acceleration Programme is ‘drill-ready’ to close the GAP in gas supply through NGP in For personal use only 2018 Consideration Update Stairway Testing • Continued through 2017: programme − West Mereenie 15 free flowing gas from Stairway at sustainable rates with a lo
Slide 14: Commercial & Strategic Update
COMMERCIAL & STRATEGIC UPDATE The GAP is based on brownfield economics using existing infrastructure enabling “success” to be For personal use only sold and gas delivered Consideration Update Reserves and cash • Targeted Reserves 446 PJ (Most Likely and Existing) • Cash balance at the end of the qua
Slide 15: Other Recent Developments
OTHER RECENT DEVELOPMENTS For personal use only Development Update Mereenie marketing • Central continues to work towards negotiating a mutually acceptable pathway with our Mereenie joint venturer, agreements Macquarie, to effectively commercialise the Mereenie gas reserves RISC update • RISC review
Slide 16: Other Recent Developments
OTHER RECENT DEVELOPMENTS For personal use only Development Update Non-cash accounting • As noted in the June Quarterly Activities Report lodged on 27 August, Central will make a non-cash adjustment under AASB adjustment 139 to current year financial profit of approximately $9.5m1 1. As announced on
Slide 17: Reserves Potential
RESERVES POTENTIAL For personal use only • Present 2P Reserves are 125.9 PJ and, under GAP, have identified three targets where known gas exists in the zone. These targets can be appraised by a $25 million four horizontal well programme with no intention of fraccing. No. of Wells Gross Potential Net
Slide 18: Mereenie Stairway
1 MEREENIE STAIRWAY For personal use only Central Petroleum volume assessment of the Mereenie Stairway volumes (145 PJ) are based on updated Special Core Analysis and Petrophysical log interpretation, post Scheme review (120 PJ). Stairway Target Low Most Likely High Best Estimate EUR Gross (PJ) 110
Slide 19: Palm Valley Shallow
2 PALM VALLEY SHALLOW For personal use only Reserves/Resources (SoA)* 1P 2P 2C Sales Gas (PJ) 17 22 30 * Please note that the Reserves/Resources (SoA) volumes are specifically related to contracted Sales Gas volume. Palm Valley Low Most Likely High Best Estimate EUR (PJ) 83 127 165 19
Slide 20: Ooraminna
3 OORAMINNA For personal use only Ooraminna Low Most Likely High EUR (PJ) (SoA) 89 120 158 20
Slide 21: Reserves and Resources
RESERVES AND RESOURCES1 1 Mereenie Stairway2 Low Most Likely High For personal use only Best Estimate EUR Gross (PJ) 110 145 186 Best Estimate EUR Net (PJ) 55 73 92.5 2 Palm Valley Shallow3 Low Most Likely High Best Estimate EUR (PJ) 83 127 165 3 Ooraminna4 Low Most Likely High Best Estimate EUR (PJ
Slide 22: Most Likely Reserves
MOST LIKELY RESERVES • The combined total Most Likely1 volume as highlighted are: For personal use only GAP 500 400 300 PJ 200 100 0 Gross Reserves Non-Central Reserves Net Reserves Existing Reserves Total Reserves 392 PJ (72 PJ) 320 PJ +126 PJ 446 PJ • There remains a risk that any or all three pro
Slide 23: Exploration Activities
EXPLORATION ACTIVITIES For personal use only Area CTP % Update • Prospectivity confirmed during Phase 1 farm-out seismic acquisition and positive results at Mt Kitty Southern • Seismic acquisition as part of Phase 2 farm-out to 30% - Amadeus 60% Santos is 72% complete Basin • Central benefitting fro
Slide 24: Milestones by Calendar Year End
MILESTONES BY CALENDAR YEAR END For personal use only 1 TEG unit installed – part of Dingo upgrade 2 Mereenie marketing agreements in place 3 Funding sources secured 4 FOUR well drilling programme of known gas zones commenced 5 New Directors appointed to augment existing Board 24
Slide 25: Keep Calm and Mind the Gap
For personal use only KEEP CALM AND MIND THE GAP
Slide 26: Key Risks
KEY RISKS Investors should be aware that the market price of Central's securities may be influenced by a number of factors. General movements in local and international stock markets, exchange rates, prevailing economic conditions, investor sentiment For personal use only and interest rates could al
Slide 27: Key Risks
KEY RISKS For personal use only Joint venture risk Central’s prime asset is the Mereenie oil & gas field (Mereenie) which is under a 50:50 joint venture with Macquarie Mereenie Pty Limited (Macquarie Mereenie). All activities at Mereenie can only be carried out pursuant to a joint venture budget unl
Slide 28: Key Risks
KEY RISKS For personal use only Operating and insurance risks Any future operations of Central may be delayed or adversely affected by factors which are beyond the control of Central including but not limited to surface access restrictions, compliance with current and new governmental requirements,
Slide 29: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS For personal use only This document does not constitute an offer of new ordinary shares ("New Shares") of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be o
Slide 30: International Offer Restrictions
INTERNATIONAL OFFER RESTRICTIONS For personal use only Switzerland The New Shares may not be publicly offered in Switzerland and will not be listed on the SIX Swiss Exchange ("SIX") or on any other stock exchange or regulated trading facility in Switzerland. This document has been prepared without r
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