CLOSING THE GAP - Mitigating the Australian Energy CrisisBrisbane, July 31, 2017 AEST (ABN Newswire) - Central Petroleum Limited (ASX:CTP) (OTCMKTS:CPTLF) provides the Company's latest Quarterly Results Review Presentation.
Central's Gas Acceleration Programme is 'drill-ready' to close the GAP in gas supply through NGP in 2018.
Consideration: Stairway Testing programme
Update: - Continued through 2017:
o West Mereenie 15 free flowing gas from Stairway at sustainable rates with a low nitrogen content of 2.6%
o Palm Valley natural fracture modelling underway
Consideration: Dingo Upgrade - TEG
Update: TEG unit being ordered in time as part of the Dingo upgrade for Owen Springs Power Station upgrade
Consideration: Production workforce
Update: - Production workforce in the Northern Territory transformed to:
o 1/3 local indigenous
o 1/3 local non-indigenous
o 1/3 FIFO
Consideration: Local economic activity
Update: Local economic activity is around $3.4 million annually - an increase of $2.3 million p.a. since assuming operatorship of producing gas fields in the Northern Territory
COMMERCIAL & STRATEGIC UPDATE
The GAP is based on brownfield economics using existing infrastructure enabling "success" to be sold and gas delivered.
Consideration: Reserves and cash
Update: - Targeted Reserves 446 PJ (Most Likely and Existing)
- Cash balance at the end of the quarter was $5.5 million with EDL revenue to come
Update: Central's FY2018 EBITDA* is forecast to be positive for the first time in corporate history following the first full year of revenue from the EDL gas sale agreement which represents a 46% increase in FY2018 contracted gas sales
Consideration: Takeover bid
Update: - Shareholder and takeover issues resolved
- Scheme Independent Expert valued the Company at >20 cents per share, taking into account a $42 million capital requirement
Consideration: Closing the GAP
Update: - Negotiations are progressing satisfactorily for Mereenie joint venture's gas marketing so that, when we decide to Close the GAP, there can be quick commercialisation
- Ground-breaking on NGP on 12 July - on track to be operational by Q4 next calendar year
- Ensured Central not caught by Fraccing Moratorium in Northern Territory
* Excluding the $25 million exploration programme identified in this presentation and the impact of Total's withdrawal from the Southern Georgina Joint Venture.
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About Central Petroleum Limited
Central Petroleum Limited (ASX:CTP) (OTCMKTS:CPTLF) is an oil and gas explorer and producer listed on the Australian Securities Exchange focused on supplying the domestic gas market. Central is advancing several separate projects across what is regarded as the biggest package of proven and prospective oil and gas acreage across central Australia. This spread of assets gives Central multiple options for growth and development. 88% of this land being gas prone has led to the Company's focus on becoming a major domestic gas producer.
Central Petroleum Limited