Quarterly Activities Report
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.
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About Central Petroleum Limited
Central Petroleum Limited (ASX:CTP) 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