Strike Energy Limited · ASX:STX

Strike Energy — South Australian Basins Symposium 2010

31 slides from Strike Energy's conference presentation, Mar 26, 2010

  1. Slide 1: South Australian Basin Symposium Presentation

    Strike Energy Limited ABN 59 078 012 745 26 March 2010 The Company Announcement Officer OUR STRENGTHS Australian Securities Exchange Ltd via electronic lodgement • High margin producer • Multiple large scale growth options • Experienced team • Long term track record SOUTH AUSTRALIAN BASIN SYMPOSIUM

  2. Slide 2: Southern Cooper - South Australia's Emerging Energy Province

    SOUTHERN COOPER - SOUTH AUSTRALIA’S EMERGING ENERGY PROVINCE South Australian Basins Symposium 26 March 2010

  3. Slide 3: Disclaimer

    DISCLAIMER This presentation does not constitute an offer, invitation or recommendation to subscribe for, or purchase any security and neither this presentation nor anything contained in it shall form the basis of any contract or commitment. Reliance should not be placed on the information or opinio

  4. Slide 4: Multiple growth assets

    Multiple growth assets STRIKE ENERGY “Strike Energy is a high margin gas and oil-condensate producer, active in some of the world’s most productive basins, with major growth potential across a range of new energy opportunities.” Presentation focus “Emerging energy province”

  5. Slide 5: South Australia's demand for electricity is growing

    SUPPLY AND South Australia’s demand for electricity is growing DEMAND CAN SOUTH AUSTRALIA GAS FEED THIS GROWTH? Courtesy ESIPC/AEMO

  6. Slide 6: Historic gas supply from the Cooper Basin is diminishing

    SUPPLY AND Historic gas supply from the Cooper Basin is diminishing DEMAND Courtesy ESIPC/AEMO

  7. Slide 7: Queensland's Solution: exploit Coal Seam Gas (CSG)

    SUPPLY AND Queensland’s Solution: exploit Coal Seam Gas (CSG) DEMAND 65% Courtesy StockAnalysis

  8. Slide 8: South Australia's increasing reliance on imported gas

    SUPPLY AND South Australia’s increasing reliance on imported gas! DEMAND 62% Courtesy ESIPC/AEMO

  9. Slide 9: Gas projects key to South Australia's future

    SUPPLY AND Gas projects key to South Australia’s future DEMAND “Given the size of South Australia’s mineral assets, any delays to these projects caused by inadequate power supply wouldn’t just be a local concern, it would have a medium-to-long-term-impact on the performance of the national economy.”

  10. Slide 10: The next possible gas supply for South Australia?

    The next possible gas supply for South Australia? SOUTHERN COOPER PROJECT  Strike has built a strategic position in Southern Cooper Basin  Since 1997 Strike has built up > 17,000 km2 in Southern Cooper • PELA 71 75%* • PEL 96 66.67%* • PEL 94 30% • PEL 95 50% • PPL 210 50% • PELA 515 100%*  Strik

  11. Slide 11: Located in the corridor between supply and demand

    Located in the corridor between supply and demand SOUTHERN COOPER PROJECT Diminishing supply Growing demand Growing demand Growing demand

  12. Slide 12: Scope to replace South Australia's traditional gas supply

    Scope to replace South Australia’s traditional gas supply SOUTHERN COOPER PROJECT Diminishing supply New energy province? PEL 96 • 3,700 to 9,300 PJ prospective gas resource Growing demand Growing demand

  13. Slide 13: Multiple resource opportunities including "unconventional"

    Multiple resource opportunities including “unconventional” SOUTHERN COOPER PROJECT STRIKE ENERGY BASIN CONVENTIONAL UNCONVENTIONAL DEPTH PERMITS TertiaryCoal Tertiary Coal CSG 200-600m All Lake Eyre Winton Coal Winton Coal CSG, UCG 200-600m All Eromanga Oil 800-1500m All Toolachee Toolachee Coal Coa

  14. Slide 14: Requirements for successful CSG Project

    Requirements for successful CSG Project SOUTHERN COOPER PROJECT OGIP/Volume Resource X Recovery Factor = Reserves Ability to Economic Coal Volume X Gas Content X Permeability X Produce X = Value Factors Resource PEL 96 Courtesy NSAI

  15. Slide 15: Coal volume: Individual seams up to 18 metres thick on "highs"

    Coal volume: Individual seams up to 18 metres thick on “highs” SOUTHERN COOPER PROJECT Weena 1 Tinga Tingana 1

  16. Slide 16: Coal volume: multiple Permian coal seams in "lows"

    Coal volume: multiple Permian coal seams in “lows” SOUTHERN COOPER PROJECT NW PEL 96 SE Tertiary Coal Winton Coal Permian Coal

  17. Slide 17: Coal volume: very large prospective CSG resource

    Coal volume: very large prospective CSG resource SOUTHERN COOPER PROJECT  Shallowest Permian Coals in the Cooper Basin (1000m+)

  18. Slide 18: Coal volume: very large prospective CSG resource

    Coal volume: very large prospective CSG resource SOUTHERN COOPER PROJECT  Shallowest Permian Coals in the Cooper Basin (1000m+)  PEL 96 has 1,450km2 of coal above 1,500m

  19. Slide 19: Coal volume: very large prospective CSG resource

    Coal volume: very large prospective CSG resource SOUTHERN COOPER PROJECT  Shallowest Permian Coals in the Cooper basin (1000m+)  PEL 96 has 1,450km2 of coal above 1,500m  Up to 75m net coal thickness

  20. Slide 20: Coal volume: very large prospective CSG resource

    Coal volume: very large prospective CSG resource SOUTHERN COOPER PROJECT  Shallowest Permian Coals in the Cooper Basin (1000m+)  PEL 96 has 1,450km2 of coal above 1,500m  Up to 75m net coal thickness  Estimated gas in place 7,400-18,600 PJ  Prospective Resource 3,700-9,300 PJ

  21. Slide 21: We have established coal volume

    We have established coal volume SOUTHERN COOPER PROJECT OGIP/Volume Resource X Recovery Factor = Reserves Ability to Economic Coal Volume X Gas Content X Permeability X Produce X = Value Factors Resource  Huge Courtesy NSAI

  22. Slide 22: We have established coal volume

    We have established coal volume SOUTHERN COOPER PROJECT OGIP/Volume Resource X Recovery Factor = Reserves Ability to Economic Coal Volume X Gas Content X Permeability X Produce X = Value Factors Resource     To be determined by To be Huge confirmed coring programme by pilot Courtesy NSAI

  23. Slide 23: Economic factors: future extensions to electricity grid

    Economic factors: future extensions to electricity grid SOUTHERN COOPER PROJECT Existing liquids pipeline Existing gas pipeline Existing water pipeline Gas pipeline options considered by BHPBilliton CS Compressor Station Powerline options considered by Geodynamics

  24. Slide 24: Economic factors: capital and market access advantage

    Economic factors: capital and market access advantage SOUTHERN COOPER PROJECT Conceptual cash flows CSG Project with market and infrastructure access (Strike Energy’s Southern Cooper Project) +$ Typical Queensland CSG Project with no immediate infrastructure and market Epic Energy Pipeline - Compres

  25. Slide 25: Economic factors favourable

    Economic factors favourable SOUTHERN COOPER PROJECT OGIP/Volume Resource X Recovery Factor = Reserves Ability to Economic Coal Volume X Gas Content X Permeability X Produce X = Value Factors Resource      To be determined by To be Competitive Huge confirmed Position coring programme by pilot Co

  26. Slide 26: Coring programme: core hole selection criteria

    Coring programme: core hole selection criteria SOUTHERN COOPER PROJECT 2-4 Appraisal Core Holes  Concentrate on Permian coals  Seismic and well control  Close to Epic gas pipeline  Different structural settings  Spacing close enough for reserves certification  Accessible from Strzelecki Track

  27. Slide 27: Coring programme: special considerations required for CSG operations

    Coring programme: special considerations required for CSG SOUTHERN operations COOPER PROJECT Drilling programme needed to take into account:  Drilling under Petroleum and Geothermal Act and Regulations  Drilling through proven hydrocarbon bearing formations (elsewhere in the basin)  Using mineral

  28. Slide 28: Coring programme: schedule

    Coring programme: schedule SOUTHERN COOPER PROJECT 0 Drill 8.5" hole Drilling programme 200  Surface casing at approx. 80m Drill 6.125" hole 400 Depth (Measured below Rotary Table in metres)  Case to approx. 800 m 600  Drill to top of Permian 800  Continuous HQ core Permian section 1000  Mud lo

  29. Slide 29: Coring programme: evaluation

    Coring programme: evaluation SOUTHERN COOPER PROJECT On site  Chip samples of Tertiary and Winton Coal  Continuous cores (Permian coals)  Gas desorption samples all coals >2m  Wireline logs including Tertiary and Winton Coal  Drillstem tests for permeability/deliverability Post drill  Gas cont

  30. Slide 30: Moving to pilot design and implementation in 2011

    Moving to pilot design and implementation in 2011 SOUTHERN COOPER PROJECT $ billions VALUE TIME

  31. Slide 31: www.strikeenergy.com.au ASX CODE: STX

    www.strikeenergy.com.au ASX CODE: STX

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