Strike Energy Limited · ASX:STX

Strike Energy — Strike Oil — Investor Presentation (November 2009)

23 slides from Strike Energy's investor presentation, Nov 5, 2009

  1. Slide 1: Company Presentation cover letter

    Strike Oil Limited ABN 59 078 012 745 5 November 2009 The Company Announcement Officer Australian Securities Exchange via electronic lodgement COMPANY PRESENTATION Please find attached an Investor Briefing Company Presentation. Yours faithfully OUR STRENGTHS High margin produ cer Mu ltip le large sc

  2. Slide 2: High Margin Producer – Major Growth Potential

    HIGH MARGIN PRODUCER – MAJOR GROWTH POTENTIAL November 2009

  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: Major new energy opportunities

    Major new energy opportunities THE PORTFOLIO Company changing potential Gas/condensate production - large scale discovery potential CSG opportunities - major project potential Large tonnage coal resource - conventional gasification Conventional oil exploration - expanding opportunity

  5. Slide 5: Capital position

    Capital position THE COMPANY As at 5 November 2009 Shares on issue (ASX: STX) million 328.6 Options on issue million 15.4 Current share price A$ 0.24 Market capitalisation A$ million 78.8 Cash and listed investments A$ million 16.0 Debt (3.5 year repayment schedule) A$ million 6.0 Enterprise value A

  6. Slide 6: Why invest in Strike?

    INVESTMENT Why invest in Strike? PROPOSITION 1. High margin production – generating substantial cashflow  One of the most successful ASX listed Gulf Coast explorers  10 producing gas/oil-condensate wells onshore US Gulf Coast – 9.2 Bcfe (1P Reserves)  Growing inventory of exploration prospects –

  7. Slide 7: High margin producer

    High margin producer US ONSHORE GULF COAST Production and Financial Performance: 2009 Financial Year Result YoY change Gas production 3.33 Bcf 185% Oil production 81,836 bbl 222% Production revenue $36.4 million 128% Gross margin 71% 1% EBITDAX (STX) $24.8 million 125% Net profit (STX) $10.2 million

  8. Slide 8: Major gas discoveries

    Major gas discoveries US ONSHORE GULF COAST TWO PRODUCING FIELDS: Rayburn/Mesquite (gross est. ultimate recovery: 71 Bcfe) CURRENT RESERVES  Primarily Middle Wilcox  Total proved: 41.5 Bcfe (June 09):  STX share: 9.2 Bcfe ADDITIONAL PROSPECTIVE RESOURCE  Potential pay zones : • Upper and Lower W

  9. Slide 9: First class exploration opportunity

    First class exploration opportunity US ONSHORE GULF COAST RECORD TO DATE – RAYBURN AND MESQUITE  Tested targets with gross 200 Bcf pre-drill potential  Result: 71 Bcfe delivered into 1P reserves to date (estimated ultimate recovery) TARGETS – BEYOND RAYBURN AND MESQUITE  660 Bcf potential on exis

  10. Slide 10: A great place to find oil and gas

    A great place to find oil and gas US ONSHORE GULF COAST  Vast petroleum infrastructure  Ready access to market (discovery to sales – 2 months!)  US gas pricing premium

  11. Slide 11: A pipeline of large scale energy opportunities

    A pipeline of large scale energy opportunities AUSTRALIAN PROJECTS CONVENTIONAL NON-CONVENTIONAL OFFSHORE OIL (GAS) COAL SEAM GAS Baniyas: Southern Cooper: STX 40%, Operator STX 66.7%, Operator Oil case potential:  CSG prospective in-situ resource  9 - 47 million boe (Gross P90-P10) 7,000-19,000 P

  12. Slide 12: State Significant Coal Seam Gas opportunity

    “State Significant” Coal Seam Gas opportunity SOUTHERN COOPER LARGE SCALE  Shallowest extensive Cooper Basin Permian coals (1000 metres and deeper)  Gross 7,000-19,000 PJ prospective gas resource (5,000 - 12,000 PJ Strike’s interest)* PIPELINE TO MARKET IN PLACE - LOW UPFRONT CAPEX  Epic - Moomba

  13. Slide 13: Extensive coal seams

    Extensive coal seams SOUTHERN COOPER  Thick coal seam mapped over 1,450km2 - based on past oil exploration wells and seismic  Individual seams up to 18 metres thick PEL 96 Boundary

  14. Slide 14: Capital and market access advantage

    Capital and market access advantage SOUTHERN COOPER Conceptual cash flows CSG Project with market and infrastructure access (Strike Oil’s Southern Cooper Project) + Typical Queensland CSG $ Project with no immediate infrastructure and market access Epic Energy Pipeline - Compressor station adjacent

  15. Slide 15: CSG evaluation program - short term

    CSG evaluation program - short term SOUTHERN COOPER 2010 Jan Feb Mar Apr May Jun Jul Drilling core holes CSG - coal and gas evaluation CSG - pilot design UCG - preliminary evaluation

  16. Slide 16: Major strategically located coal resource

    Major strategically located coal resource FUTURGAS RESOURCE  578 Million tonnes JORC compliant lignite resource*  Conventional open cut mine TECHNOLOGY  Combustion and gasification of lignite confirmed  Utilises established surface coal gasification (SCG) and downstream technologies PRODUCTS  M

  17. Slide 17: Conventional oil and gas

    Conventional oil and gas CARNARVON BASIN BANIYAS  One of the best shallow water prospects in the Carnarvon Basin  47 million barrels of oil equivalent (boe) potential  STX 40% share; 19 million boe potential  Consolidating title position over entire structure

  18. Slide 18: The scale of the growth opportunity

    The scale of the growth opportunity CURRENT POSITION Resource Potential Region Project Scale Project Life Status (Strike’s share) US Gulf Coast Rayburn and Mesquite 36.5 Bcfe +10 years Progressive field (Current 9.2Bcfe 1P Prospective Resource development Reserves) Beyond Rayburn and 200 Bcf +10 yea

  19. Slide 19: Value make-up

    Value make-up CURRENT POSITION Market capitalisation approx. A$79 million Australian CSG Onshore Gulf Coast gas exploration A$29 - 34 million Australian SCG Australian conventional oil and gas A$35 - 40 million NPV of USA production (@10-15% discount) A$10 million Net cash/debt

  20. Slide 20: CSG value growth

    CSG value growth CURRENT POSITION Strike Oil CSG and ASX “CSG players” enterprise value comparison Producer 30 October 2009* $1,000,000,000 3.2 b 3.1 bn $900,000,000 Pilots producing $800,000,000 $700,000,000 Enterprise Value $600,000,000 $500,000,000 Coreholes planned, pilot $400,000,000 testing, p

  21. Slide 21: Strategy – to transform the company

    Strategy – to transform the company CURRENT POSITION Spend to Asset Strategy Action Jun 2010 High margin cashflow Growth through exploration Drilling starts Dec 2009 $5.1m Large potential CSG/UCG resource Prove up through drilling Drilling starts Jan 2010 $3.0m Large lignite resource (SCG) Commercia

  22. Slide 22: Transformational potential: drilling schedule

    TRANSFORMATIONAL Drilling schedule POTENTIAL Indicative drilling schedule 2009 2010 Dec Jan Feb Mar Apr May Jun US Onshore Gulf Coast Southern Cooper Basin Southern Cooper holds immediate potential to elevate Strike to a major participant in the Australian CSG sector

  23. Slide 23: JORC Compliance Statement – FuturGas Resource

    www.strikeoil.com.au ASX Code: STX JORC COMPLIANCE STATEMENT – FUTURGAS RESOURCE The FuturGas coal resources presented in this report are located at Kingston South Australia and have been classified and reported in accordance with the JORC code. The JORC resource estimate is comprised of 523.5 milli

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