Central Petroleum Ltd.: Market Update - Queensland Investor Club Dinner Presentation

Brisbane, Australia (ABN Newswire) - Central Petroleum Ltd. (ASX:CTP) (OTCMKTS:CPTLF) announces company presentation regarding Mereenie acquisition strategy. The immediate objective of this acquisition is to provide immediate financial underpinning to Central Petroleum, and maximise uncontracted gas reserves as a catalyst for NEGI. Thereby re-rating our production assets and surrounding exploration acreage.

Following highlights include;

Acquisition Overview

- CTP will acquire a 50% interest in the Mereenie Oil & Gas Field from Santos and assume Operatorship

- CTP will become Operator across all 3 producing gas fields in Central Australia

- Total acquisition cost of A$55m funded by debt and available cash

- Compelling value driver (CTP Base IRR > 20%) with immediate benefits to net cash flow and debt financing costs

- Substantial upside potential:

-- Significant undeveloped oil reserves not valued (oil price rebound potential)

-- Significant uncontracted gas reserves and installed production~ 45TJ/d. New sales opportunities into NT domestic, East Coast (NEGI), or Darwin LNG with low marginal production costs across CTP's portfolio (<$1.50/GJ)

- Mereenie is the catalyst to connecting Central Australia with high value markets which will re-rate our surrounding exploration acreage and stimulate new exploration investment

Major Upside Opportunities

- 123PJs internal estimate of existing 2P gas reserves at Mereenie*, target of 280PJs by end of 2015

- The NEGI pipeline will add substantial value to CTP

-- NEGI contingent cost of $15M cash and $55M -$75M work program is contingent on CTP benefitting from the NEGI pipeline (must be value accretive)

-- Total NEGI contingent cost is not just reserve acquisition, but funds field production facilities.

-- Could generate ex-field gas sales revenue across CTP's portfolio in excess of $40M/yr (CTP share)

-- Value not only through sales, but in creating a market to stimulate new conventional gas exploration within CTP's extensive exploration acreage.

- Significant gas reserves can be commercialised without NEGI, including:

-- New sales through LNG production at Darwin

-- Incremental gas sales into the domestic NT market

-- New gas commercialisation projects throughout the NT

- 12 mmboe of undeveloped liquids reserves* at Mereenie not currently valued (possible oil price recovery play)

- Mereenie Oil production could add scale to future discoveries in oil-prone EP115

* Estimate based on reserve data presented in the Mereenie data room and recent production history


To view the Company presentation, please visit;
http://media.abnnewswire.net/media/en/docs/ASX-CTP-722096.pdf<


About Central Petroleum Limited:

Central Petroleum Ltd. (ASX:CTP) (OTCMKTS:CPTLF) is an ASX listed junior exploration and production company operating the largest holding of prospective onshore acreage in Australia totalling over 270,000 km2, c.70 million acres. This acreage includes permits already awarded and acreage under application with 250,000 km2 under the Petroleum Acts and 20,000 km2 under the Mining Acts mainly in the Northern Territory with smaller holdings in Western Australia, South Australia and Queensland.



Contact:

Central Petroleum Ltd.
T: +61 (0)7 3181 3800
F: +61 (0)7 3181 3855
www.centralpetroleum.com.au