Market Update - Queensland Investor Club Dinner Presentation
Brisbane, June 10, 2015 AEST (ABN Newswire) - Central Petroleum Limited (
ASX:CTP)(CPTLF:OTCMKTS) announces company presentation regarding Mereenie acquisition strategy. The immediate objective of this acquisition is to provide immediate financial underpinning to Central Petroleum, and maximise uncontracted gas reserves as a catalyst for NEGI. Thereby re-rating our production assets and surrounding exploration acreage.
Following highlights include;
Acquisition Overview
- CTP will acquire a 50% interest in the Mereenie Oil & Gas Field from Santos and assume Operatorship
- CTP will become Operator across all 3 producing gas fields in Central Australia
- Total acquisition cost of A$55m funded by debt and available cash
- Compelling value driver (CTP Base IRR > 20%) with immediate benefits to net cash flow and debt financing costs
- Substantial upside potential:
-- Significant undeveloped oil reserves not valued (oil price rebound potential)
-- Significant uncontracted gas reserves and installed production~ 45TJ/d. New sales opportunities into NT domestic, East Coast (NEGI), or Darwin LNG with low marginal production costs across CTP's portfolio (<$1.50/GJ)
- Mereenie is the catalyst to connecting Central Australia with high value markets which will re-rate our surrounding exploration acreage and stimulate new exploration investment
Major Upside Opportunities
- 123PJs internal estimate of existing 2P gas reserves at Mereenie*, target of 280PJs by end of 2015
- The NEGI pipeline will add substantial value to CTP
-- NEGI contingent cost of $15M cash and $55M -$75M work program is contingent on CTP benefitting from the NEGI pipeline (must be value accretive)
-- Total NEGI contingent cost is not just reserve acquisition, but funds field production facilities.
-- Could generate ex-field gas sales revenue across CTP's portfolio in excess of $40M/yr (CTP share)
-- Value not only through sales, but in creating a market to stimulate new conventional gas exploration within CTP's extensive exploration acreage.
- Significant gas reserves can be commercialised without NEGI, including:
-- New sales through LNG production at Darwin
-- Incremental gas sales into the domestic NT market
-- New gas commercialisation projects throughout the NT
- 12 mmboe of undeveloped liquids reserves* at Mereenie not currently valued (possible oil price recovery play)
- Mereenie Oil production could add scale to future discoveries in oil-prone EP115
* Estimate based on reserve data presented in the Mereenie data room and recent production history
To view the Company presentation, please visit;
http://media.abnnewswire.net/media/en/docs/ASX-CTP-722096.pdf
About Central Petroleum Limited
Central Petroleum Limited (
ASX:CTP) is an established ASX-listed Australian oil and gas producer (ASX:CTP) with exploration and appraisal permits in the Northern Territory (NT). Central has grown to become the largest onshore gas operator in the NT, supplying residential and industrial customers in the NT and wider Australian east coast market.
Central is seeking to become a major domestic energy supplier, in addition to helium and naturally occurring hydrogen, with exploration, appraisal and development plans across 169,112 km2 of tenements the NT, including some of Australia's largest known onshore conventional gas prospects in the Amadeus Basin.
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