Ann: Central Awarded Preferred Tenderer for Queensland Permit, page-57

Just starting to focus on the QLD Initiative and thought I would share it with you.

As usual all care but DYOR before making investment decisions.

The following is a work in progress & I would value any leads



SUMMARY

• PLR201718-1-1 is 77 Square KM   (Say 8.5 KM X 8.5 KM divided into 25 Sub Blocks)

• Central now needs to negotiate land access and native title, and meet environmental requirements before their petroleum leases are granted.

• IPL deal with Central also allows for the negotiation of interim gas supplies until at least the end of 2019 (Announcement didn’t say this could not be extended!).

• As far as I know as a rough estimate Gibson Island Uses >150 TJ/day. So they would need a lot more that CTP can provide down NGP1 in the short term to maintain production which IMO means that IPL will need another gas supply to cover till 2022 even if the PLR201718-1-1 initiative is productive.

• QLD Minister for natural resources Dr Lynham announced an expansion of the initiative with a further 6000 sq km (Say 77 X 77 KM) of ground to be offered for exploration for domestic supply, as well as 111,000sq km (Say 333 X 333 KM) without any restrictions on marketing so this QLD government  initiative has a long way to go.

Summary Of Background Info



IPL AGM Presentation 21/Dec/17
Extract

“Phosphate Hill produced 940kt, 10% below record production, despite bringing forward maintenance programme.
Focus on securing economic gas for Gibson Island”

IPL Queensland Government Gas Tender Update 1 Mar 2018
Extracts

“IPL has a Memorandum of Understanding with Central Petroleum that provides a period of
exclusivity relating to the negotiation of commercial arrangements for the development of this
acreage with the intention that some of this gas would be used to supply IPL’s Gibson Island plant. Along with the development of the acreage, IPL will pursue commercial terms with Central Petroleum for the supply of interim gas to Gibson Island from cessation of the current gas contracts until at least the end of 2019, by which time it is expected that the appraisal works on the acreage will have been completed.”

AND

“IPL has a Memorandum of Understanding with Central Petroleum that provides a period of exclusivity relating to the negotiation of commercial arrangements for the development of this acreage with the intention that some of this gas would be used to supply IPL’s Gibson Island plant. Along with the development of the acreage, IPL will pursue commercial terms with Central Petroleum for the supply of interim gas to Gibson Island from cessation of the current gas contracts until at least the end of 2019, by which time it is expected that the appraisal workson the acreage will have been completed.

As part of these arrangements, it is contemplated that IPL may provide up to $20 million of
funding to support appraisal and drilling activities in relation to the acreage. If the reserves are proven following appraisal and drilling activities, it is anticipated that development of the acreage will yield gas in 2022.”


AND

AFR Angela Macdonald well worth Reading

http://www.copyright link/business/energy/gas/central-petroleum-armour-energy-win-gas-exploration-acreage-in-queensland-20180228-h0wt08

Extracts

“The fate of the Gibson Island plant has been hanging by a thread as Incitec hunts to replace an existing supply contract that ends in September with affordable new gas. While the new acreage would only supply gas from about 2022, Incitec's deal with Central also allows for the negotiation of interim gas supplies until at least the end of 2019.”


AND

“Incitec chief executive Jeanne Johns said that while the economics of new gas supply for Gibson Island were "challenging", the award of the new acreage "creates a pathway for IPL to work with Central to secure an affordable source of gas for our Gibson Island plant".

Dr Lynham announced an expansion of the initiative with a further 6000 sq km (Say 77 X 77 KM) of ground to be offered for exploration for domestic supply, as well as 111,000sq km (Say 333 X 333 KM) without any restrictions on marketing.




Best Regards



OGP