Strike Energy Limited · ASX:STX
Strike Energy — Strike Oil — Excellence in Oil and Gas conference 2009
18 slides from Strike Energy's conference presentation, Apr 6, 2009
Slide 1: ASX Announcement: Excellence in Oil and Gas presentation
ASX Announcement ASX Code: STX 6 April 2009 Strike Oil Limited ABN 59 078 012 745 The Company Announcement Officer Australian Stock Exchange Ltd via electronic lodgement Our Strengths "EXCELLENCE IN OIL AND GAS" PRESENTATION Producer/Explorer with strong cash flow Please find attached Strike Oil's
Slide 2: Building on Success | April 2009
BUILDING ON SUCCESS | APRIL 2009
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
Slide 4: Profitable business – positioned for growth
Profitable business – positioned for growth THE COMPANY A successful oil and gas exploration and production company with operations focussed on the most productive basins in the USA and Australia US GULF COAST Production 11 mmcfe/d (1,100 boe/d) Reserves 9.6 Bcfe proved Prospective gas 240 Bcf
Slide 5: A history of discovery
A history of discovery THE COMPANY 1996 – Commenced exploration activities as private E&P company 2003 – Discovery of Casino gas field: 250 Bcf 2003 – Casino sold and funds returned to shareholders 2004 – Comet Ridge; multi Tcf CSG play – capital return to shareholders 2004 – Strike Oil Ltd listed o
Slide 6: Low price entry to growth business
Low price entry to growth business CAPITAL POSITION 6 months to 31 December 2008: • 120% production increase • A$25 million revenue • A$14.8 million EBITDAX • 60% share price drop Sector de-rating applied to STX, despite underlying business growth Shares on issue (ASX: STX) 328.6m Options on iss
Slide 7: Gulf Coast – a great place to find oil & gas
Gulf Coast – a great place to find oil & gas US BUSINESS UNIT Vast petroleum infrastructure Ready access to market (discovery to sales – 2 months!) US gas pricing premium Strong US relationships pave the way to quality opportunities
Slide 8: Major onshore Gulf Coast discoveries
Major onshore Gulf Coast discoveries US BUSINESS UNIT – FIELDS TWO PRODUCING FIELDS: Rayburn and Mesquite (estimated ultimate recovery: 61 Bcfe) CURRENT RESERVES Production is from primarily the Middle Wilcox Formation Total proved reserves (Dec 08): 40.5 Bcfe (34.5 Bcf, 0.6 mmbbl) Strike Oil
Slide 9: Gulf Coast – high margin production
Gulf Coast – high margin production US BUSINESS UNIT – PRODUCTION TWO PRODUCING FIELDS: Rayburn and Mesquite Daily production (STX share) - 1,100 boe/day from 9 mmcf gas, 200 bbl condensate/day 120% increase in past 6 months Oil and Gas sales revenue - $A25 million for 6 months to December 200
Slide 10: Exceptional return on investment
Exceptional return on investment US BUSINESS UNIT – PERFORMANCE MIDDLE WILCOX FORMATION – TYPICAL WELL INPUTS AND ECONOMIC RESULT RAYBURN MESQUITE Initial production rate 8 - 10 mmcfd 2 - 6 mmcfd Annual decline years 1-3 (pa) 40 - 50% 40 - 50% Estimated ultimate recovery 5 - 8 Bcfe 2 - 5 Bcfe Well c
Slide 11: Wilcox trend – excellent success rate
Wilcox trend – excellent success rate US BUSINESS UNIT – EXPLORATION RECORD TO DATE Tested targets with 200 Bcf pre-drill potential Result: 61 Bcfe delivered into 1P reserves (est. ultimate recovery) TARGETS 660 Bcf potential on existing prospects Target generation and leasing being aggressi
Slide 12: The right time to grow
The right time to grow US BUSINESS UNIT – OPPORTUNITY OBJECTIVE To grow production 4 fold in 24 months COMPETITIVE POSITION/OPPORTUNITY A successful established position The right relationships built over 2-3 decades The new business environment provides opportunity: • Commodities off 50% •
Slide 13: A pipeline of large scale new energy supply options
A pipeline of large scale new energy supply options AUSTRALIAN BUSINESS UNIT CONVENTIONAL NON-CONVENTIONAL OFFSHORE OIL (GAS) COAL SEAM GAS Baniyas: Southern Cooper: STX 40%, Operator STX 66.7%, Operator Oil case potential CSG prospective resource 7-37 MMBO (P90-P10) 8-20 TCF (P90-P10) Gas c
Slide 14: One of the best undrilled oil targets in shallow water Carnarvon Basin
One of the best undrilled oil targets in shallow AUSTRALIA water Carnarvon Basin – BANIYAS VALUE 7-37 million barrels of oil potential Seismic amplitude conforms with structure 150 million barrels produced from adjacent fields NEXT STEPS Secure rights over entire structure (imminent) Secur
Slide 15: Major strategically located Coal Seam Gas Potential
Major strategically located Coal Seam Gas Potential AUSTRALIA – SOUTHERN COOPER VALUE Huge 8-20 Tcf prospective resource Shallowest Permian coals in the Cooper Basin (targeted by Santos in deeper parts of the Basin) Adjacent to key gas delivery pipelines Coal distribution confirmed by oilfie
Slide 16: Major strategically located CTL and power project
Major strategically located CTL and power project AUSTRALIA – FUTURGAS VALUE JORC lignite resource: 578 million tonnes Over A$50m spent by previous owners Over 40,000 metres drilled, 550 bore holes State significant coal resource – close to infrastructure Potential 10,000 barrels/day coal-
Slide 17: Continuing the profitable growth path
Continuing the profitable growth path BUILDING ON SUCCESS Gulf Coast position offers a successful production growth path (4 fold) - next 2 years Existing portfolio of new energy options in Australia and USA provide multiple value add positions Changed business environment provides for addition
Slide 18: ASX Code: STX
ASX Code: STX www.strikeoil.com.au
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