REVIEW OF OPERATIONS FOR THE QUARTER ENDED 30 JUNE 2021

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    Highlights
    Activities Report and
    ASX Appendix 5B
    • Cash balance at the end of the June quarter (the quarter) was $37.2 million,
    compared to the $37.7 million balance at 31 March 2021, reflecting:
    • $5.2 million net cash flow from operations (before exploration and finance
    costs)
    • Ongoing exploration activity ($1.6 million expended) including the Range
    pilot drilling and completion and the acquisition of long lead items for the
    forthcoming two well exploration program in the Amadeus Basin
    • Commencement of the Mereenie Development Program, with four well
    recompletions undertaken and commencement of drilling for the first of two
    new production wells (included in $2.1 million of capital expenditure)
    • Principal repayments under debt facilities of $1.0 million. Pre-sale gas
    deliveries totalled 432 TJ, and 182 TJ of previously over-lifted gas was
    returned.
    • Net Debt was $31.1 million at 30 June, up slightly from $30.8 million at the end of March.
    • Sales volumes were 2.57 PJe (Petajoule equivalent), consistent with the 2.59 PJe sold
    in the March quarter. Sales for the full financial year were 10.3 PJe, 17% down from the
    12.3 PJe sold in the previous year reflecting weak gas markets in the first half of the
    financial year and natural field decline in advance of the current development well drilling
    campaign.
    • Sales revenues were steady at $15.4 million for the quarter, and $59.8 million for the
    full FY2021, down 8% from $65.0 million in FY2020.
    • Unit sales price across the portfolio increased by 1% to an average of
    $6.01/GJe, up from $5.97/GJe in the March quarter, reflecting strong demand
    from higher-priced gas contracts and higher oil pricing.
    • Asset sale – In May, Central announced the sale of 50% of its interests in the
    Mereenie, Palm Valley and Dingo fields to New Zealand Oil & Gas Limited (NZOG)
    and Cue Energy Resources Limited (Cue) for consideration valued at circa $85
    million (refer ASX Announcement dated 25 May 2021). The proceeds will fund a
    significant program of development and exploration in those areas and enable the
    repayment of $30m of debt. The transaction is expected to complete in the
    September quarter.
    • Range Gas Project Pilot – Central and Incitec Pivot Limited drilled three appraisal pilot
    wells and commenced a testing program in June that will continue for at least three
    months. The pilot program is designed to inform the Joint Venture on potential well
    production profiles and options to best progress the Range project toward FID.
    • Mereenie Development Program – four well recompletions were undertaken and
    drilling commenced for the first of two new production wells (WM27). WM27 was
    temporarily suspended and is scheduled for sidetrack drilling and completion at the end
    of the drilling campaign. Subsequent to the end of the quarter, drilling commenced on
    the second production well (WM28).
    “The sale of 50% of our
    operating assets at a
    significant profit is a strong
    result for shareholders and a
    great achievement for our
    team, with the sale proceeds
    to repay debt and fund
    significant new exploration
    and development.
    With domestic gas markets
    recovering well from 2020
    lows, we now pivot back to
    high growth activities that
    focus on unlocking the value
    we believe exists in the
    Amadeus Basin and Range
    CSG project.”
    Central Petroleum MD and
    CEO, Leon Devaney
    CE NTRA L P E TROLE UM LIMI TE D
    ABN 72 083 254 308
    ASX:CTP
    Investor and Media Inquiries
    Greg Bourke: +61 04 7831 8702
    Sarah Morgan: +61 04 2166 4969
    info@centralpetroleum.com.au
    Level 7, 369 Ann Street
    Brisbane, Qld 4000, Australia
    CENTRAL PETROLEUM LIMITED | ACTIVITIES REPORT AND ASX APPENDIX 5B FOR THE QUARTER ENDED 30 JUNE2021 PAGE 2 OF 10
    Message from Managing Director and CEO
    I’m pleased to report the June quarter financial results, with our cash flow and balance sheet at the end of the June
    quarter in a solid position to progress our growth strategies.
    We are progressing well toward completion for the sale of 50% of our Amadeus Basin producing assets, at which
    time we formally welcome New Zealand Oil & Gas Limited (NZOG) and Cue Energy Resources Limited (Cue) as
    new joint venture partners. The sale is a real achievement for the company in what has been a challenging period
    for the oil and gas sector.
    The transaction provides circa $85 million of value to Central and crystallises an expected book profit of $35 - $40
    million. This is a great investment outcome for shareholders given the assets were only acquired about six years
    ago and with very little equity.
    Net debt is $31.1 million on a cash balance of $37.2 million, which we expect to improve when we pay-down $30
    million of debt upon completion of the NZOG/Cue transaction.
    In addition to reducing debt and other liabilities, the transaction provides Central with an opportunity to leverage
    this success by accelerating its growth plans for the broader Amadeus Basin, stimulating over $100 million of gross
    investment in Central’s producing assets without further cash input from Central. Activity is already in progress,
    with four wells recompleted at Mereenie this quarter and drilling now underway on two new production wells to
    significantly boost Mereenie’s production capacity from the 31 TJ/d average produced last quarter.
    The transaction also allows us to accelerate new growth and exploration activities. Two exploration wells are
    scheduled to be drilled later this year, with the potential to more than replace Central’s divested reserves within
    existing producing fields. These deep exploration wells at Palm Valley and Dingo are physically located under
    established infrastructure and are targeting formations that are known to produce gas elsewhere in the Amadeus
    Basin. Success would provide a strong catalyst to open up further conventional gas plays across the Basin and
    complement our efforts to pursue the next phase of new targets in 2022.
    In the Surat Basin (Qld), our three-well Range pilot has been drilled, completed and testing commenced. Already
    flowing small volumes of gas, the pilot will aid in providing key production data for the front-end engineering and
    design necessary to reach a final investment decision for the Range Gas Project.
    We remain focussed on our other larger, potentially company-changing sub-salt targets
    in the Amadeus Basin which have the potential for commercial quantities of Helium
    and Hydrogen, in addition to hydrocarbons. Planning for an initial seismic
    acquisition at Zevon later this year is well advanced and has attracted a grant
    from the NT Government. We also continue to press for progress at our promising
    Dukas prospect and expect a decision from Santos on their level of participation
    imminently.
    We welcome Stephen Gardiner to the Board as a new Director. Stephen’s
    extensive finance experience in the oil, gas and infrastructure sectors will
    be particularly relevant as we enter this next exciting stage of growth.
    While our cash flows and revenues will be lower in the immediate future
    following the recent asset sell-down, the investment in new production
    and exploration opportunities has the potential to unlock and create new
    value from our portfolio in the near future. We look forward to delivering
    these exciting programs over the next year.
    Leon Devaney
    Managing Director and Chief Executive Officer
    CENTRAL PETROLEUM LIMITED | ACTIVITIES REPORT AND ASX APPENDIX 5B FOR THE QUARTER ENDED 30 JUNE 2021 PAGE 3 OF 10
    Production Activities
    SALES VOLUMES
    Sales volumes were steady at 2.57 PJe
    for the quarter, (including 0.18 PJ of
    overlift repayment gas and 0.05 PJ of
    purchased gas).
    The Mereenie and Palm Valley fields
    were producing at close to capacity
    through the quarter and firm long-term
    gas supply contracts accounted for 99%
    of June quarter volumes.
    FY2021 continued to reflect weak
    domestic gas market conditions during
    the first half. This, in conjunction with
    natural field decline, resulted in the sales
    volumes for the full year to June 2021 of
    10.27 PJe, being 17% lower than the
    12.34 PJe sold in FY2020.
    Field capacity is expected to be increased in FY2022 as two new production wells are commissioned and
    brought online at Mereenie.
    Central’s operating results from Q1 of FY2022 are anticipated to reflect completion of the sale of 50% of its
    interests in the producing fields to NZOG and Cue.
    SALES REVENUE
    Total sales revenue in the June quarter was $15.4 million, consistent with the $15.5 million in the preceding
    quarter, reflecting ongoing strong demand from higher-priced contracts and a firmer oil price.
    Sales revenue FY2021 Full year
    Product Unit Q3 Q4 FY2020 FY2021
    Gas $’000 13,809 13,796 58,959 54,355
    Crude and Condensate $’000 1,659 1,630 6,086 5,472
    Total Sales Revenue $’000 15,468 15,426 65,045 59,827
    Revenue per unit $/GJe $5.97 $6.01 $5.27 $5.83
    Central’s revenues from Q1 of FY2022 are anticipated to reflect completion of the sale of 50% of its interests
    in the producing fields to NZOG and Cue.
    MEREENIE OIL AND GAS FIELD (OL4 AND OL5) – NORTHERN TERRITORY
    CTP - 50% interest (and Operator), Macquarie Mereenie Pty Ltd - 50% interest
    (CTP interest reducing to 25% upon completion of asset sale, expected in Q1 FY2022)
    Mereenie’s production was slightly impacted as four wells were sequentially taken off-line through April and
    May for recompletions to access producing zones previously behind casing, before being progressively
    returned to production. Gross field production averaged 30.8 TJ/day across the quarter, marginally higher
    than the March quarter’s maintenance-affected 30.2 TJ/d.
    CENTRAL PETROLEUM LIMITED | ACTIVITIES REPORT AND ASX APPENDIX 5B FOR THE QUARTER ENDED 30 JUNE 2021 PAGE 4 OF 10
    The production capacity of the Mereenie field was approximately 31 TJ/d (100% JV) at the end of the quarter.
    Drilling commenced on WM27, the first of two new crestal production wells at Mereenie in early June. The
    well was drilled to 1,367m and equipment is being mobilised to execute a mud-drilled sidetrack through the
    deeper Pacoota-3 interval. The second well, WM28, was subsequently spudded on 21 July and is drilling
    ahead. After the WM28 well is completed, the rig is intended to return to WM27 to complete the Pacoota-3
    sidetrack. The recompletions and new wells are expected to increase the Mereenie field’s gross production
    capacity and produce at least an additional 40 PJ of gas over their lifetime (20 PJ net to Central, reduced to
    10 PJ net post-completion of the asset sale to NZOG/Cue).
    PALM VALLEY (OL3) – NORTHERN TERRITORY
    CTP - 100% interest
    (CTP interest reducing to 50% upon completion of asset sale, expected in Q1 FY2022)
    The Palm Valley field produced at an average of 7.9 TJ/d over the quarter, down from 8.4 TJ/d in the March
    quarter due to natural field decline.
    Production capacity was approximately 8 TJ/d at the end of the quarter.
    DINGO GAS FIELD (L7) AND DINGO PIPELINE (PL30) – NORTHERN TERRITORY
    CTP - 100% interest
    (CTP interest reducing to 50% upon completion of asset sale, expected in Q1 FY2022)
    The Dingo gas field supplies gas directly to the Owen Springs Power Station in Alice Springs. Lower customer
    nominations resulted in a 7.5% decrease in gas production to an average 3.7 TJ/d over the quarter. The daily
    contract volume of 4.4 TJ/d is subject to take-or-pay provisions under which Central is paid annually in January
    for the previous calendar year’s shortfall.
    Appraisal Activities
    RANGE GAS PROJECT (ATP 2031) – QUEENSLAND
    CTP - 50% interest, Incitec Pivot Queensland Gas Pty Ltd (“Incitec”) - 50% interest
    The three Range Pilot wells, Range-6,
    Range-7 and Range-8 were
    successfully drilled in April/May to
    depths of between 675m and 685m,
    with net coal of between 26m and 28m
    across the three coal seams of the
    Walloon Coal Measures.
    The Range pilot consists of three wells
    closely spaced at 200m apart to
    accelerate the dewatering process, a
    production water tank, flare and
    associated pipework. Each well has
    been completed with a slotted liner over
    the three seams of the Walloon Coal
    Measures with a downhole pump
    installed.
    CENTRAL PETROLEUM LIMITED | ACTIVITIES REPORT AND ASX APPENDIX 5B FOR THE QUARTER ENDED 30 JUNE 2021 PAGE 5 OF 10
    Testing of the pilot commenced in mid-June and will
    provide production data for at least three months to
    support a final investment decision (“FID”). The pilot
    is intended to provide key information regarding
    reservoir productivity (initially via water rates), gas
    desorption (when gas is first produced), zonal
    contribution (how much each coal seam is
    contributing) and the initial production profiles of gas
    and water ramp up.
    Gas breakthrough was observed immediately upon
    commencement of pumping, earlier than expected,
    indicating the presence of coals that are fully
    saturated with gas. The water level in the wells was
    gradually drawn-down to the pumps and by mid-July
    aggregate daily gas rates had reached around 35,000
    scfd. These are expected to increase as dewatering
    continues in coming months.
    Initial aggregate water rates are lower than
    anticipated which implies less capital will be required
    for water handling, processing and disposal in the
    development phase.
    Gas flaring at the Range CSG Pilot (July 2021)
    Work continued during the quarter on activities required to reach FID, including approvals and permits for
    project development. Proposals for provision of gas processing facilities for the full field development were
    received from several established infrastructure providers and are currently being assessed.

    part of a much larger release
    =================================================================================================

    courtesy of Bell Direct

    DYOR

    i do not hold this share

    since there were numerous pretty pictures among this release i assume the devil is in the detail

    1 like
  2. 3.4k
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    No mention of Surprise.
    Is that still producing oil ?

    1 like
  3. 82.0k
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    obviously not enough to brag about , maybe on of those pictures was more important

    i did note IPL has taken a hit today CTP news or of it's own doing

    1 like
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    The Operator Central Petroleum Limited advises that on 25 April 2022, the Palm Valley 12
    (PV12) well in OL3, Southwest of Alice Springs in the Northern Territory, had reached a
    depth of 221 m at 0600 hours and is currently drilling ahead. Operations this week included
    drilling the 24” hole section to 101m and running and cementing the 20” conductor, prior to
    drilling ahead in the 17.5” hole. In the past week a total of 221m drilling has occurred.
    The PV12 well has two alternate objectives, consisting of a deeper gas exploration target or
    a shallower gas appraisal lateral that could become a production well. The primary
    exploration target is the Arumbera Sandstone at an anticipated depth of 3,560m. The well is
    expected to reach its total depth of 3,980m in early June.
    The PV12 well is the first of a 2-well drilling program that also includes the Dingo-5
    exploration/production well. Both wells are being drilled under joint ventures between
    Central (50% interest) (ASX: CTP), New Zealand Oil & Gas Limited (ASX: NZO) (35% interest)
    and Cue Energy Resources Limited (ASX: CUE) (15% interest) and are scheduled to be
    completed this year.

    DYOR

    i do not hold this share

    1 like
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    PALM VALLEY-12 WEEKLY DRILLING UPDATE
    The Operator (“Central”) (ASX: CTP) advises that on 9th May 2022, the Palm Valley 12 (PV12)
    well in OL3, Southwest of Alice Springs in the Northern Territory, had reached a depth of
    1103m at 0600 hrs ACST. In the past week a total of 283m of drilling has occurred reaching
    the planned total depth for the 17.5” hole section at 1103m on 5th May. Consequent to
    reaching total depth, the 13 3/8” casing has been run and cemented, the BOP and surface
    equipment has been pressure tested and the well is anticipated to commence drilling ahead
    in 12 ¼” hole from 10th May.
    The PV12 well has two alternate objectives, consisting of a deeper gas exploration target or a
    shallower gas appraisal lateral that could become a production well. The primary exploration
    target is the Arumbera Sandstone at an anticipated depth of 3,560m.
    The PV12 well isthe first of a 2-well drilling program that also includesthe Dingo-5 exploration
    / production well. Both wells are being drilled under joint ventures between Central (50%
    interest), New Zealand Oil & Gas Limited (ASX: NZO) (35% interest) and Cue Energy Resources
    Limited (ASX: CUE) (15% interest) and are scheduled to be completed this year.

    DYOR

    i do not hold this share

  6. 82.0k
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    AMADEUS OPERATIONS UPDATE
    New Zealand Oil & Gas has received new information from the Operator (Central Petroleum,
    ASX: CTP; Operator) of the Palm Valley and Dingo permits. Given the Company’s
    renounceable rights issue offer is currently open, we are sharing this information now, before
    matters have developed and before any decisions have been made.1

    Key elements of the information received from Operator and known at present are as follows.
    A further near-term appraisal opportunity in the Pacoota P3
    - The Operator has advised that, following new insights from a technical review, it has
    identified a potentially attractive additional appraisal opportunity in the Palm Valley
    Pacoota P3 formation which may warrant further assessment.
    - The Joint Venture (JV) will undertake the required joint work to properly understand
    the options available and will pursue those that optimise the JV’s position.
    - Subject to JV approval, the P3 appraisal opportunity could be integrated into the
    current PV-12 drilling programme which in turn could result in changes to the timing,
    sequence, duration, and potential costs of the remaining drilling programme.
    - The PV-12 well is expected to intersect the P3 formation in circa 2 – 3 weeks as it drills
    to the PV Deep prospect (the Arumbera formation). The JV is currently considering
    activities to log the Pacoota P3 during this time.
    - Any decisions regarding an addition to the appraisal targets of the PV-12 drilling
    programme are expected to be made once the total depth of the current Palm Valley
    well has been reached and the Arumbera formation has been evaluated.
    - The purchase of certain long-lead equipment necessary to preserve the opportunity to
    appraise the P3 formation is currently being considered by the JV. An indicative
    diagram is included below.
    - One of the key drivers for appraising the P3 formation as part of the PV-12 well is the
    context of the current East Coast gas demand and spot pricing. Evidence of this is
    seen in our announcement of 5 May 2022 and there are positive indications of this
    continuing.
    Further updates will be provided on the full extent of the Pacoota P3 opportunity and any
    associated changes as they become available.
    Cost Information
    - The latest cost information received from the Operator has confirmed increased costs
    have been incurred to date and that such pressures may continue. The Operator is
    presently pursuing several potential mitigations to address these cost pressures.
    1
    See New Zealand Oil & Gas’ announcement of 27 April 2022 regarding an equity raising of up to NZ$25 million through a
    1-for-2.7625 renounceable rights offer.
    - The Operator has advised that as at 30 April, approximately $3.1 million of additional
    costs have been incurred on the drilling programme.
    - These cost increases are, in part, driven by increasing fuel & freight costs which are
    particularly material given the remote location, increased cost of civil works and
    equipment costs, and delays in rig logistics.
    - From the information that the Operator has shared with us to date, it is our expectation
    that the current well programme costs will continue to increase. At this point, we do not
    have any firm forecast numbers and we understand that Operator will attempt to
    mitigate any future cost increases. As above, we will advise the market of any
    developments as and when we can.
    - These impact the total costs to New Zealand Oil & Gas via payment of its share of the
    operations and the application of Operator’s carry as required under Amadeus
    Acquisition Sale and Purchase Agreement from the original acquisition.
    2
    Andrew Jefferies CEO of New Zealand Oil & Gas says “Whilst the cost pressures currently
    being observed within the drilling campaign are not ideal, inflation is hitting everyone’s hip
    pocket at this point. I am pleased that we are being agile in evaluating the newly recognised
    P3 opportunity and preserving the option to exploit it in this campaign, which could achieve
    significant cost efficiencies compared to returning to appraise it separately. The gas markets
    continue to provide short term opportunities and we expect this to continue, so more
    production in the short term is very attractive at this point. It is a moving feast and I look forward
    to keeping shareholders updated as decisions are made, particularly while our equity raising
    offer is open.”

    DYOR

    i do not hold this share

    two anns in two days .. is there a cap. raise coming ??

    1 like
  7. 82.0k
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    Palm Valley 12 Drilling Update
    Central Petroleum Limited (“Central”) (ASX: CTP) advises that on 23 May 2022, the Palm
    Valley 12 (PV12) well in OL3, Southwest of Alice Springs in the Northern Territory, had
    reached a depth of 1,880m at 0600 hrs ACST in the P1 unit of the Pacoota Formation.
    The P1 unit of the Pacoota Formation is the main productive zone in the Palm Valley field
    and is a proposed sidetrack candidate in this well if the deep exploration target at the
    Arumbera level is not successful.
    Gas production at Palm Valley predominantly comes from natural fractures which can
    provide very good production rates. While drilling through the P1, PV12 appears to have
    intersected the fracture system which is encouraging for potential production rates from a
    horizontal well bore in the P1. Encountering this degree of fracturing in the P1 also increases
    the likelihood of encountering production-enhancing fractures in the deeper target zones.
    The fractures also slow drilling progress due to losses of drilling fluids into the fractures,
    which has resulted in 193m of hole being drilled since the 17 May 2022 drilling update.
    Drilling practices are underway to reduce these losses prior to drilling ahead to the total
    depth of the 12 ¼” hole section of 2,009m. Then the 9 5/8” casing string will be run and
    cemented.
    The PV12 well has two alternate objectives, consisting of a deeper gas exploration target or
    a shallower gas appraisal lateral that could become a production well. The primary
    exploration target is the Arumbera Sandstone at an anticipated depth of 3,560m.
    The PV12 well is the first of a 2-well drilling program that also includes the Dingo-5
    exploration / production well. Both wells are being drilled under joint ventures between
    Central (50% interest), New Zealand Oil & Gas Limited (ASX: NZO) (35% interest) and Cue
    Energy Resources Limited (ASX: CUE) (15% interest) and are scheduled to be completed
    this year.

    DYOR

    i do not hold this share

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