Strike Energy Limited · ASX:STX
Strike Energy — Good Oil Conference 2010
22 slides from Strike Energy's conference presentation, Sep 8, 2010
Slide 1: Good Oil Conference Presentation (ASX cover letter)
Strike Energy Limited ABN 59 078 012 745 8 September 2010 For personal use only The Company Announcement Officer OUR STRENGTHS Australian Securities Exchange Ltd via electronic lodgement • High margin producer • Multiple large scale growth options • Experienced team GOOD OIL CONFERENCE PRESENTATION
Slide 2: Discovery Drives Growth
For personal use only DISCOVERY DRIVES GROWTH Good Oil Conference 8 September 2010
Slide 3: 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 4: Company changing potential growth assets
Company changing potential GROWTH ASSETS For personal use only 1. LOUISE DISCOVERY, ONSHORE GULF COAST 2. MULTIPLE COMPANY CHANGING OPPORTUNITIES 3. DRILLING TO COMMENCE THIS MONTH – POTENTIAL 5 TO 10 FOLD RESERVE INCREASE CONVENTIONAL O&G CARNARVON ONSHORE SOUTHERN COOPER GULF COAST CSG GAS/CONDENS
Slide 5: Corporate snapshot
Corporate snapshot THE COMPANY For personal use only CAPITAL STRUCTURE (6 SEPTEMBER 2010) Shares on issue (ASX: STX) million 328.6 Options on issue million 16.6 Current share price A$ 0.19 Market capitalisation A$ million 62.4 Cash A$ million 4.6 Debt A$ million 5.4 Enterprise value A$ million 63.2
Slide 6: Why buy a Strike share?
Why buy a Strike share? STRIKE ENERGY For personal use only MATERIAL GROWTH POTENTIAL - LARGE SCALE PROJECTS Potential share Core projects Gross Strike net price impact Southern Cooper CSG 3.7 – 9.3 Tcf 2.5 – 6.2 Tcf > $5/share Gulf Coast Gas/Condensate 600 Bcfe 170 Bcfe > $1/share Carnarvon Basin O
Slide 7: Profitable US business
Profitable US business ONSHORE GULF COAST For personal use only ONSHORE GULF COAST Vast pipeline “A great place to find oil & gas” network STRIKE HAS Profitable business established Solid production base • 11 producing wells Substantial growth • 600 Bcfe of prospective resource
Slide 8: Position and results
Position and results ONSHORE GULF COAST For personal use only Production Gross 2,520 Boe/day Discoveries Mesquite, Rayburn, Louise discoveries developed (eleven producing wells) Drilling 20 wells drilled Land leasing 30,000 acres (gross) Strike has a Prospects and profitable discovery 10+ Prospects
Slide 9: Successful profitable exploration
Successful profitable exploration ONSHORE GULF COAST For personal use only 50% success rate-Wilcox wells New discovery Louise, financial payout after five months CURRENT RESERVES/PROSPECTIVE RESOURCES (JUNE 2010) Strike working interest Bcfe Proved reserves Mesquite/Rayburn 6.7 Prospective resou
Slide 10: What next?
What next? ONSHORE GULF COAST For personal use only Ongoing exploration evaluation (600 Bcfe prospective resource evaluation to continue) Deerslayer Prospect, Steindorf 1 well to spud September 2010 (gross 200 Bcfe, net to Strike 60 Bcfe) Reserves update by December Quarter 2010 Other explor
Slide 11: Competitive position
Competitive position SOUTHERN COOPER PROJECT For personal use only STRIKE HAS Dominant acreage position Substantial CSG resource Unique market access
Slide 12: Dominant acreage position
Dominant acreage position SOUTHERN COOPER PROJECT For personal use only 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% (Operator) • PEL 96 66.67% (Operator) • PEL 94 30% • PEL 95 50% • PPL 210 50% • PELA
Slide 13: Coal volume: very large prospective CSG resource
Coal volume: very large prospective CSG resource SOUTHERN COOPER PROJECT For personal use only Shallowest Permian coals in the Cooper Basin (<1500m) 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 Depth to To
Slide 14: Unique market access
Unique market access SOUTHERN COOPER PROJECT For personal use only Pipeline compressor station in permit Connected to all eastern states markets Low infrastructure cost development Potential support for LNG export Attractive economics
Slide 15: Initial drilling – Forge
Initial drilling – Forge 1 SOUTHERN COOPER PROJECT For personal use only Initial drilling suspended (August 2010) due to drilling equipment limitations Forge 1 drilled 1351 metres (target depth 1505 metres) Incomplete and non-representative Permian section drilled in contact with Jurassic/Perm
Slide 16: What next?
What next? SOUTHERN COOPER PROJECT For personal use only Permian PEL 95 ? CSG wells Tertiary/Cretaceous Up to 20 holes (max depth 500m) Permian PEL 96 2-4 CSG wells POSSIBLE TIMING Permian drilling PEL 96 December 2010 Permian drilling PEL 95 March 2011 Tertiary/Cretaceous coal exploration Oct
Slide 17: Shallow water conventional project advancing
Shallow water conventional project advancing CARNARVON BASIN For personal use only FOCUS Baniyas Prospect Operator 61.5% interest Prospective resource (million Boe) Rivoli Gas Field P10 P50 P90 45 19.1 7.5 Rivoli Gasfield Operator 44.5% interest
Slide 18: Next steps
Next steps CARNARVON BASIN For personal use only BANIYAS Finalise agreement on block 6309 Farmout Drill in mid 2011
Slide 19: Advanced surface coal gasification project
Advanced surface coal gasification project FUTURGAS SOUTH AUSTRLIA For personal use only 578 Million tonnes JORC compliant lignite resource* ideal for gasification Testing has confirmed excellent quality “Syngas” production Product options: CTL, urea, ammonia, methanol, power Located close t
Slide 20: Shareholder impact
Shareholder impact STRIKE ENERGY For personal use only Strike Energy share price leverage to success Current Share Price
Slide 21: Summary
Summary STRIKE ENERGY For personal use only STRIKE HAS Projects with material shareholder impact Current share price underpinned by US profitable business Drilling to start within one month
Slide 22: JORC Compliance Statement – FuturGas Resource
www.strikeenergy.com.au ASX : STX For personal use only 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 com