Strike Energy Limited · ASX:STX
Strike Energy — Strike Oil — Shareholder Meeting (November 2008)
28 slides from Strike Energy's shareholder meeting presentation, Nov 18, 2008
Slide 1: Chairman's Address and AGM Presentation
ASX Announcement ASX Code: STX 18 November 2008 For personal use only Strike Oil Limited ABN 59 078 012 745 The Company Announcement Officer Australian Stock Exchange Ltd via electronic lodgement CHAIRMAN’S ADDRESS AND AGM PRESENTATION Our Strengths Producer/Explorer with strong cash flow Please f
Slide 2: Chairman's Address
STRIKE OIL LIMITED ANNUAL GENERAL MEETING 18 November 2008 CHAIRMAN’S ADDRESS Introductions For personal use only At a time when financial markets worldwide are under almost unprecedented stress, as shareholders you must find yourselves regularly asking the question, are the companies in which I hav
Slide 3: Chairman's Address (continued)
In this regard I reference the recent release describing Strike Oil’s oil and gas reserves growth. That we have seen Proven and Probable reserves grow to 19.3Bcfe net to Strike Oil and a further 240Bcf Prospective Gas Resource net to Strike is a significant milestone for the Company. What is particu
Slide 4: Strong and Growing Cashflow
For personal use only STRONG AND GROWING CASHFLOW 2008 AGM PRESENTATION
Slide 5: The Past Year in Summary
THE PAST YEAR IN SUMMARY Production For personal use only • Growing gas/condensate production established (13.3mmcfe/day) Reserves and Resources • Rapidly growing Gulf Coast Reserves and Resources • Net 19.3 Bcfe Proved plus Probable Reserves (2P) • 240 Bcf Prospective Gas Resource Strong Cash
Slide 6: The Gulf Coast Opportunity
THE GULF COAST OPPORTUNITY Unique Opportunity For personal use only • One of the world’s most prolific oil and gas basins • Pipelines cross or within a few kilometres of all prospects • Low capital cost to access distribution infrastructure • Discovery to cash flow in weeks • This is Strike Oil’s
Slide 7: Rayburn – Mesquite: Production
RAYBURN – MESQUITE : PRODUCTION Total Field Production Rayburn + Mesquite: For personal use only • 46 mmcf gas and 1160 bbls oil‐condensate (5,760 bbls oil equivalent) per day. Rayburn • 5 wells on production, 2 wells testing, 1 well drilling ‐ Wilcox Formation target (Upper, Middle, Lower) ‐ Se
Slide 8: Rayburn – Mesquite: Production Quality
RAYBURN – MESQUITE: PRODUCTION QUALITY For personal use only Individual Well Payback – exceptional • 3 – 4 months Rayburn • 12‐18 months Mesquite Outstanding individual well performance at Rayburn: • Flows of 10mmcf/day and 240 barrels of condensate/day • Delivered 5‐10 bcfe per well to Proved a
Slide 9: Rayburn – Mesquite: Potential
RAYBURN – MESQUITE : POTENTIAL Large Discoveries For personal use only Rayburn and Mesquite amongst the largest discoveries onshore Gulf Coast in the past few years Rayburn • 400 Bcf gas potential with substantial oil condensate volume • < 20% of potential evaluated • Appraisal and development d
Slide 10: Growth Opportunity: Gulf Coast
GROWTH OPPORTUNITY : GULF COAST Opportunity and Success For personal use only • Project generation program provides opportunity pipeline of exceptional quality • Rayburn and Mesquite discoveries‐direct results of the program • Drilling success rate to date: ‐ 66% ‐ exploration wells ‐ 78% ‐ apprai
Slide 11: What the Gulf Coast Means to Strike Oil
WHAT THE GULF COAST MEANS TO STRIKE OIL Potential Value impact to Strike Oil on upgrading of Prospective Resources For personal use only Strike Oil’s Share of Bcfe 50 100 150 200 250 Potential Discoveries Potential Value on Discovery at: $ 250 500 750 1000 1250 NPV, AUD $5m/Bcfe Millions (USD$3.25m/
Slide 12: Gulf Coast Drilling Schedule
GULF COAST DRILLING SCHEDULE For personal use only Rayburn • Current Well Drilling – Duncan Ansley Gas Unit 1‐1 (Drilling ahead at 10,713 feet) • 3 well shallow drilling program due to commence in November 2008 • 2 development wells – Scheduled from March/April 2009 Exploration • 2 well programme to
Slide 13: Gulf Coast – Next Drilling
GULF COAST – NEXT DRILLING BUILDING ON THE KNOWLEDGE BASE For personal use only Tumbleweed (Mesquite) 30% interest • 40 Bcf potential Flint 35% interest • 50 Bcf potential Rayburn 22.8% interest • Shallow drilling (3 wells) ACTIVE ONGOING DRILLING
Slide 14: Australia: Carnarvon Basin and Cooper Basin
AUSTRALIA CARNARVON BASIN COOPER BASIN For personal use only Baniyas Project and Carnarvon Basin ‐ Major review of assets and partnering to reduce expenditure and priorities risk PELA 71 and PELA 96 Rivoli Gas Project – proposal awaiting progressing to grant government review CONSOLIDATION A
Slide 15: Hybrid Energy – FuturGas Project
HYBRID ENERGY – FUTURGAS PROJECT For personal use only Proposed production of 10,000 barrels of liquid fuels per day, from surface coal gasification Revenue potential of A$400 million per annum Confirmed JORC compliant lignite resource, 578 million tonnes (523 million tonnes Measured Resource,
Slide 16: 2009 Building Balance Sheet Strength
2009 BUILDING BALANCE SHEET STRENGTH Gulf Coast Focus For personal use only • Maintain exploration appraisal and development drilling • Increase reserves • Increase production and cash flows • Establish further growth opportunities Australia Secure third party funding • Hybrid Energy Australia (
Slide 17: The Company
THE COMPANY IS IN THE BEST E&P LOCATION (ONSHORE GULF COAST) For personal use only TO BE BUILDING IN A CAPITAL CONSTRAINED ENVIRONMENT HAS STRONG AND GROWING CASH FLOWS HAS RAPIDLY GROWING GULF COAST PRODUCTION AND RESERVES IS PARTNERED WITH EXPERIENCED AND SUCCESSFUL GULF COAST OPERATOR H
Slide 18: ASX Code: STX
For personal use only ASX Code: STX www.strikeoil.com.au
Slide 19: Disclaimer
DISCLAIMER For personal use only 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
Slide 20: FuturGas Project
For personal use only 18 November 2008 FuturGas Project An exciting liquid fuels and electricity generation project Barry Ford Managing Director
Slide 21: World Energy Outlook
World Energy Outlook “The world's energy system is at a crossroads. Current global trends in For personal use only energy supply and consumption are patently unsustainable - environmentally, economically, socially. But that can - and must - be altered; there's still time to change the road we're on.
Slide 22: FuturGas Project Evolution
FuturGas Project Evolution November 2007 150 -300 MW Electricity Generation Plant with future CTL For personal use only November 2008 Coal-to-Liquids (CTL) with integrated power generation Kingston lignite ideal for gasification Transportation fuels market position Suitability of mining operation Do
Slide 23: Highlights
Highlights Coal-to-Liquids (CTL) project with integrated power generation For personal use only Key Products • 10,000 barrels per day of liquid • 120MW combined cycle gas-fired power station Resource • Conventional 3.6Mtpa open cut lignite mine • 30+ year mine life • 578 Mt JORC compliant resource •
Slide 24: 2008 Events and Milestones
2008 Events and Milestones Full compliment of professional and technical staff For personal use only Comprehensive business and strategic planning conducted Early stakeholder identification and engagement Testing agreement signed with University of Adelaide IPO deferred due to financial mar
Slide 25: Testing Program
Testing Program Agreement with Adelaide Research and Innovation For personal use only First Phase of combustion testing complete Kingston lignite tested Characteristics confirmed Agglomeration controlled Additives confirmed Test rig converted to gasifier November 2008 Gasification testing co
Slide 26: Financial Aspects
Financial Aspects Key Indicative Financial Metrics For personal use only IRR of 20.5% NPV at A$1.7b (at 2013) Annual revenues averaging in excess of A$0.750b C1 cash costs of A$30-35 / barrel liquid EBITDA averaging > A$0.6b pa Strong margins even at weak WTI oil prices A$1.5-1.7 billi
Slide 27: Next Steps
Next Steps Work with Royal Bank of Canada Capital Markets For personal use only •Seek investor partner through Pre-Feasibility study to Bankable Feasibility study Confirm Climate Ready Grant • December 2008 Commence Pre-Feasibility Study (PFS) • Feb – June 2009 Continue Testing Program with Universi
Slide 28: Disclaimer
Disclaimer This presentation is a general overview of Hybrid Energy Australia Pty Ltd (Hybrid) and its FuturGas Project. The presentation is in summary form and does not purport to contain all the information that is relevant to Hybrid or its FuturGas Project. It is not recommended that any person m