Central Petroleum Limited (ASX:CTP) Quarterly Activities Report

Central Petroleum Limited (ASX:CTP) (FRA:C9J) (OTCMKTS:CPTLF) provide the Quarterly Activities Report for the period ending March 2020.

Highlights

- Cash balance at the end of the March quarter (the quarter) was $26.1 million, up $11.2 million from $14.9 million at 31 December 2019. This is one of the Company's highest ever quarter ending balances:

- $7.5 million net cash flow from operations (before exploration and finance costs), including annual take-or-pay receipts of $3.2 million.

- $5.6 million in net cash flow from operations (after exploration and finance costs).

- $7.7 million received as a final settlement for unspent expenditure associated with the conclusion of the farm-out of a 50% interest in the Range Gas Project on 1 January 2020.

- Principal repayment under debt facilities was $1.0 million, Macquarie pre-sale gas deliveries totalled 432 TJ, and the return of previously over-lifted gas totalled 449 TJ.

- Sales volumes totalled 2.7 PJE (Petajoule equivalent), down 27% from 3.7 PJE in the December quarter reflecting historically weak spot gas market conditions for uncontracted production.

- Sales revenues totalled $15.3 million, down 17.6% from $18.5 million in the December quarter, reflecting lower spot gas sales, underpinned by fixed price contracted gas sales with take-or-pay provisions.

- Unit sales price across the portfolio increased to an average of $5.76/GJE, up 15% from $5.03/GJE in the December quarter, reflecting first deliveries under a new gas supply contract that commenced on 1 January 2020.

- Macquarie loan facility was proactively extended in February from 30 September 2020 to 30 September 2021.

- Work on the Range Gas Project has been paused until operating and market conditions improve. The pilot well programme and pre-Final Investment Decision (FID) activities were progressed during the quarter and remain ready for a quick restart.

- Commenced a process to farm-out assets to fund a significant exploration programme, with very encouraging initial due diligence activity and discussions progressing with several credible parties.

"We witnessed unprecedented upheaval in energy markets this quarter, and while we have not been immune to the impacts, this quarter's results illustrate the resilience of our operating assets which continue to generate positive cash flow from long-term, fixed price gas contracts.

We have taken prudent steps to conserve resources and preserve value by extending our finance facility and deferring discretionary expenditure so that Central can emerge from these extraordinary conditions, strong and ready to take full advantage of the inevitable recovery in energy markets and the opportunities that will present."

Central Petroleum MD and CEO, Leon Devaney

To view full quarterly report, please visit:
https://abnnewswire.net/lnk/6HNFSK5G


About Central Petroleum Limited

Central Petroleum Limited (Central) is a well-established, and emerging ASX-listed Australian oil and gas producer (ASX:CTP). 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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