REVIEW OF OPERATIONS FOR THE QUARTER ENDED 30 JUNE 2021

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

No mention of Surprise.
Is that still producing oil ?

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

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

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 ??