- Comprehensive and "fully informed" assessment of the east coast gas market
- 12 month study with unprecedented access to confidential market information
- Key findings:
1. New gas supply is urgently needed
2. At risk capital investment from gas producers is required now
3. Efficient pricing for existing pipelines is critical to a market based response
4. Without the above, demand destruction will occur (lost jobs, higher energy costs)
- Fully funded four hole appraisal programme over three fields in first half of 2018.
- Brown Field Development with 70TJ/day existing plant with NGP having 60TJ/day capacity available in late 2018.
- If drilling confirms prognosis and pipeline reforms synergistic with reforms on "uncovered" pipeline, Mereenie Gas (including ex-field costs) can be delivered at around $5/GJ to Sydney.
- CSG marginal ex-field predicted $5.70/GJ. ACCC reference prices is $7.77/GJ Southern $5.87 QLD.
- Price will be long term $8-$10/GJ citygate.
- Annual incremental royalties for Northern Territory if drilling confirms prognosis is $10.5m to $16m to NT Government and $2.3m to $3.5m to CLC.
- "Covered pipelines" to come.
- Day ahead auction for capacity to come.
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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