Central Petroleum Limited · ASX:CTP
Central Petroleum — Non-Deal Roadshow (September 2016)
19 slides from Central Petroleum's roadshow presentation, September 2016
Slide 1: Central Petroleum Limited Roadshow September 2016
Central Petroleum Limited Roadshow September 2016 ASX:CTP
Slide 2: The NGP is being built
The NGP is being built. 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 $800M A 12‐inch pipeline has been selected, initially capable of 90TJ/d (potential to increase capacity up to 160TJ/d with compressi
Slide 3: Change in NT Government has no impact on Central
Change in NT Government has no impact on Central. Central Petroleum Limited (“Central”) is a conventional gas producer and is not affected by the change of government as: • 54% of our staff are locally employed If NGP reaches full capacity with CTP gas then this will rise to 75%. • 26% of our staf
Slide 4: Central at a glance
Central at a glance. We have technical expertise over the on‐shore basins of Central Australia and a distinct competitive advantage in operating efficiencies within the NT giving us the ability to deliver gas to Australia’s east coast by 2018. Central’s Core Objectives: • Continue to develop technic
Slide 5: Central's Operated Gas Fields
Central’s Operated Gas Fields Central’s Operates 3 Producing Fields: • Mereenie • Palm Valley • Dingo Current Reserves (Gross JV) * • 207 PJ of 2P • 234 PJ of 2C Production Capacity (Gross JV) • All Fields ~45 TJ/d • All Facilities ~65 TJ/d Appraisal program • 5 additional reserve opportunities iden
Slide 6: Financially Positioned to Deliver
Financially Positioned to Deliver. Financials ($M) Capital Structure MARKET CAP: ~$45M SHARES ON ISSUE: 433.1M STOCK PRICE (19Sep16): A$0.10 AV. TRADING VOL./DAY: 580,000 TOP 20 SHAREHOLDERS: 20% 6 CTP: Developing Northern Australia. PESA
Slide 7: Revenues Timeline
Revenues Timeline $70 Revenue potential based on existing uncontracted gas reserves. $60 $50 Mereenie Reserves Upgrade Revenues $m $40 5.2PJ pre‐paid gas sale Northern Gas Pipeline agreement with Announcement Macquarie Bank. $30 Acquisition of 50% of Mereenie Oil & Gas field from Santos & CTP assume
Slide 8: How Will Central Respond to the Market?
How Will Central Respond to the Market? By utilising our significant gas reserves which are available for sales now and do not require hydraulic fraccing. Other Appraisal Further Low Risk Appraisal Targets (supply Exploration Existing Target: post 2018): Targets (supply Uncontracted Gas Potential to
Slide 9: ACCC Inquiry into the East Coast Gas Market
ACCC Inquiry into the East Coast Gas Market. 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 New suppliers are 2 “fully informed” urgently needed assessment of the east Need to restore coast gas market c
Slide 10: ACCC Inquiry into the East Coast Gas Market
ACCC Inquiry into the East Coast Gas Market. 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, ineffective economic regula
Slide 11: It is not about Renewables
It is not about Renewables. 1 million people employed are directly dependent on gas jobs SA electricity crisis 2/3 drop in gas used in power generation 11 CTP: Developing Northern Australia. PESA
Slide 12: The Gas Shortage is Real
The Gas Shortage is Real. • 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 onshore exploration in
Slide 13: COAG Meeting Feedback
COAG Meeting Feedback • 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 operators and evide
Slide 14: The Theory of the Resource Industry
The Theory of the Resource Industry. • 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 (particular high ris
Slide 15: Gas Pipeline Maturity
Gas Pipeline Maturity 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). Mature pipeline owners have
Slide 16: Gas Pipeline Coverage
Gas Pipeline Coverage 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 regulations in place to contro
Slide 17: Central has become Central
Central has become Central. NGP is being built Capacity exists for our production from existing reserves Mereenie has the existing infrastructure Appraisal of more reserves unaffected by change of government Inventory of prospects EBITDAX positive last year with only 10 months of Mereeni
Slide 18: Contact Us
© 2015. All rights reserved. Central Petroleum Limited | ABN 72 083 254 308 | centralpetroleum.com.au Contact Us 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 info@centralpetroleum.
Slide 19: Disclaimer
Disclaimer 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 produce profit forecasts for
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