Quarterly Activities Report
Brisbane, July 31, 2020 AEST (ABN Newswire) - Central Petroleum Limited (
ASX:CTP) (C9J:FRA) (CPTLF:OTCMKTS) continued its excellent safety and operating performance across its portfolio, with no MTIs or LTIs recorded and no reportable environmental incidents during the quarter.
Cash balance at the end of the June quarter (the quarter) was $25.9 million, down slightly from $26.1 million at 31 March 2020, with:
- $4.0 million net cash flow from operations (before exploration and finance costs);
- $1.8 million in net cash flow from operations (after exploration and finance costs); and
Principal repayments under debt facilities were $1.0 million, Macquarie pre-sale gas deliveries totalled 432 TJ, and the return of previously over-lifted gas totalled 182 TJ.
Sales volumes totalled 2.53 PJE (Petajoule equivalent), down 4.7% from 2.66 PJE in the March quarter, largely due to lower customer nominations (covered by take-or-pay provisions), compressor maintenance and natural field decline at Palm Valley.
Sales for the full FY2020 year were 12.3 PJE, up 14% on FY2019.
Unit sales price across the portfolio averaged $5.55/GJE, down 3% from $5.75/GJE in the March quarter, reflecting the flow-through lag of lower realised oil prices which were down 35% on the previous quarter.
Sales revenues totalled $14.0 million, down 8% from $15.3 million in the March quarter, reflecting lower realised oil prices and sales volumes.
Half of this revenue drop is subject to take-or-pay provisions under which Central will be paid in January 2021 for any gas nomination shortfall by the customer.
Dukas - Subsequent to quarter end, Central reached agreement with Santos on the forward plan for the Dukas exploration well, targeting completion in 1H 2022 and a possible free carry of $3 million of Central's future drilling costs.
Reserves upgrade - Subsequent to quarter end, 2P oil and gas reserves were upgraded by 22.5 PJE (16%) driven by increased reserves at Mereenie and Palm Valley.
Other growth related activities were progressed, with specific focus on strategies to restart the Range Gas Project (Surat Basin, Qld), advancing our Amadeus exploration program (NT), and negotiating with short-listed parties under the non-binding offer stage of our farmout process.
To view the full quarterly report, please visit:
https://abnnewswire.net/lnk/AV6022J4
About Central Petroleum Limited
Central Petroleum Limited (
ASX:CTP) is a well-established, and emerging ASX-listed Australian oil and gas producer. In our short history, Central has grown to become the largest onshore gas producer in the Northern Territory (NT), supplying industrial customers and senior gas distributors in NT and the wider Australian east coast market.
Central is positioned to become a significant domestic energy supplier, with exploration and development plans across 180,000 km2 of tenements in Queensland and the Northern Territory, including some of Australia's largest known onshore conventional gas prospects. Central has also completed an MoU with Australian Gas Infrastructure Group (AGIG) to progress the proposed Amadeus to Moomba Gas Pipeline to a Final Investment Decision.
We are also seeking to develop the Range gas project, a new gas field located among proven CSG fields in the Surat Basin, Queensland with 135 PJ (net to Central) of development-pending 2C contingent resource.
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