CENTRAL PETROLEUM LIMITED — AGM Information 2016

Nov 8, 2016

ASX ANNOUNCEMENT AND MEDIA RELEASE

ASX CODE: CTP

==> picture [152 x 49] intentionally omitted <==

CHAIRMAN’S ADDRESS AT THE ANNUAL GENERAL MEETING OF SHAREHOLDERS

OF

CENTRAL PETROLEUM LIMITED 9 NOVEMBER 2016

Today Central is the largest onshore producer of hydrocarbons in the Northern Territory, an objective that would have seemed fanciful only a few years ago. This has been achieved despite weak markets through foresight, creative thinking and hard work.

This is the first year where Central has operated the Palm Valley, Dingo and Mereenie oil and gas fields. These three assets give Central significant benefits in optionality and risk management. The effect of this can be seen in the operating performance for the year with revenue having increased 120% from $10.3 million to $22.64 million and positive earnings before interest, depreciation and exploration expense. Growth will continue into the current financial year.

At the same time we have enhanced our community license to operate by increasing local and indigenous employment, maintaining an excellent safety and environmental performance record and participating fully in the Northern Territory public debates on development of its gas industry. We believe the best advocates for Central in the Northern Territory are the communities within which we operate and the actions that we take as a Company.

Central played a significant role in the debate on the development of the Northern Gas Pipeline (“NGP”). Without Central’s capacity to deliver gas immediately, there would have been no imperative to develop the NGP and the economic benefits that a growing gas industry will bring to the Territory.

ASX ANNOUNCEMENT AND MEDIA RELEASE – CENTRAL PETROLEUM LIMITED

Page 2

We have been vocal in the argument for changes to the regulation of gas pipelines. There has been and will continue to be much written about this issue supported by many voluminous reports to bodies such as the ACCC. However, we are all investors here today and understand the risk and return of investing. Central’s argument is not pro‐regulation, but rather it’s anti‐monopoly. Regulation should only apply to well‐established monopoly infrastructure, not new pipelines still repaying their investors. When considering whether pipelines should be regulated monopolies I ask you consider these two alternatives. Pipeline owners that take genuine risk such as Jemena have done so by committing to construct the NGP with only about half of its carrying capacity confirmed, should be rewarded and free of regulation. Conversely, owners of long‐established pipelines that proudly state they have a “low risk approach to business” but at the same time deliver a compound annual growth in shareholder returns of 19%, are self‐evidently enjoying the benefits of a monopoly and should have economic regulation in the public interest. Needless to say, such regulation could lower gas transmission costs to the East Coast Gas Market which would benefit Central, other current and future Territory gas producers, and the development of the Territory industry.

Australian domestic industries urgently need new supplies and suppliers and with appropriate regulatory settings Australia can benefit from the new gas provinces in the Northern Territory, presently undeveloped by the “tyranny of distance”.

The capital markets remain difficult for companies such as Central. We are all disappointed with the share price performance given our potential. However we continue to make progress in realising gas sales agreements in the Northern Territory and on the East Coast. While we wait for the market to reflect this potential, we have remained innovative in funding the Company. The Gas Sales and Prepayment Agreement completed with Macquarie Bank in June enabled Central to meet its final Mereenie acquisition payment to Santos and remove future obligations under the Mereenie oil bonus agreement.

ASX ANNOUNCEMENT AND MEDIA RELEASE – CENTRAL PETROLEUM LIMITED

Page 3

It would be remiss of me not to comment on the recent announcement in relation to the court action commenced against Central in the Texas courts by GRR. It cannot be a coincidence that our recent share price gains were adversely impacted by the announcement on the court’s confirmation of Texas being an appropriate jurisdiction. I share the frustration of many shareholders that issues that pre‐date the current Board and executive management continue to haunt Central and detract from the many positive changes we have made. I must stress that this was just a matter on the appropriate jurisdiction for hearing the case which we are considering our legal options. It is not a judgement on the GRR claim. We remain confident that Central has no liability to GRR and will vigorously defend the action.

In 2016 we continued with our change programme for the Central board with Tom Wilson retiring from the board in July. Tom provided valuable knowledge and experience to Central, but I know his principal role as CEO of Magellan, then our major shareholder, also created some concerns for shareholders. We are now a board of four comprising three non‐ executive directors and Richard Cottee which I believe is now too small given the array of activities before Central. We have therefore commenced a process of identifying a suitable addition to the board which will complement the current board members. That said, I can assure you that we will continue to retain our cost conscious attitude towards all overhead costs.

In closing, I would like to thank Richard and his executive team for their imagination and sheer hard work throughout the year and you our shareholders for your patience and support.

Robert Hubbard

Chairman of the Board 9 November 2016

ASX ANNOUNCEMENT AND MEDIA RELEASE – CENTRAL PETROLEUM LIMITED

Page 4

General Disclaimer and explanation of terms:

This document may contain forward-looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which may be outside the control of the Company and could cause actual results to differ materially from these statements. These risks, uncertainties and assumptions include (but are not limited to) funding, exploration, commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals, cost estimates and other risk factors described from time to time in the Company's reports filed with the ASX. Actual values, results or events may be materially different to those expressed or implied in this document. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statement in this document is valid only at the date of issue of this document. Subject to any continuing obligations under applicable law and the ASX Listing Rules, or any other Listing Rules or Financial Regulators’ rules, the Company, its agents, directors, officers, employees, advisors and consultants do not undertake any obligation to publicly update or revise any information or any of the forward looking statements in this document if events, conditions or circumstances change or that unexpected occurrences happen to affect such a statement. Sentences and phrases are forward looking statements when they include any tense from present to future or similar inflection words, such as (but not limited to) "believe," "understand", "estimate," "anticipate," "plan," "predict," "may," "hope," "can," "will," "should," "expect," "intend," “projects”, "is designed to," "with the intent," "potential," the negative of these words or such other variations thereon or comparable terminology or similar expressions or future may indicate a forward looking statement or conditional verbs such as "will," "should," "would," "may" and "could" are generally forward-looking in nature and not historical facts.

Media Enquiries Central Petroleum Limited Martin Debelle at Citadel-MAGNUS ABN 72 083 254 308. T: +61 (0)2 8234 0100 Level 7, 369 Ann Street, Brisbane, QLD 4000, Australia M: +61 (0)409 911 189 GPO Box 292, Brisbane, QLD 4001, Australia

T: +61 (0)7 3181 3800 F: +61 (0)7 3181 3855 info@centralpetroleum.com.au www.centralpetroleum.com.au