Strike Energy Limited · ASX:STX
Strike Energy — Good Oil Conference 2015
19 slides from Strike Energy's conference presentation, Sep 1, 2015
Slide 1: Good Oil Conference Presentation – September 2015
ASX Announcement 1 September 2015 For personal use only The Company Announcement Officer ASX Ltd via electronic lodgement GOOD OIL CONFERENCE PRESENTATION – SEPTEMBER 2015 Please find attached a presentation to be given by Mr David Wrench at the Good Oil conference to be held at the Esplanade Hotel
Slide 2: Strike Energy Limited – Good Oil Conference
STRIKE ENERGY LIMITED For personal use only GOOD OIL CONFERENCE September 2015 Strike Energy Limited - Good Oil Presentation, September 2015 1
Slide 3: Strike Energy Limited overview
Good Oil Conference: Strike Energy Limited overview Strike Energy Limited (ASX : STX) is an Australian based, independent oil and gas exploration and production company. The company is focused on the development and rapid commercialisation of a substantial gas resource in the For personal use only S
Slide 4: Eastern Australian gas supply - huge potential for value creation
Good Oil Conference: Strike Energy Limited For personal use only Eastern Australian gas supply - huge potential for value creation Strike’s Southern Cooper Basin Gas Project Strike Energy Limited - Good Oil Presentation, September 2015 3
Slide 5: Eastern Australian Gas Supply: How is value created?
Eastern Australian Gas Supply: How is value created? For personal use only GAS GAS LOW SUPPLY VALUE MARKET RESOURCE COST CREATION ? Supply cost is the critical driver of value Strike Energy Limited - Good Oil Presentation, September 2015 4
Slide 6: Eastern Australian Gas Market: 20-year total demand
Eastern Australian Gas Market: 20-year total demand Over the 20-year period from 2020 to 2040, 40 Tcf of gas will be required to meet demand. Export LNG projects will create 75% of this demand. For personal use only Domestic demand LNG Export demand (1) 10,000 PJ 30,000 PJ (1) Current LNG market for
Slide 7: Supply cost: Eastern Australia gas supply cost curve
Supply cost: Eastern Australia gas supply cost curve Strike’s analysis highlights the steepness of the East Australian gas supply cost curve. The discovery and development of new large scale lower cost gas resources could substantially lower input costs for gas users by For personal use only substit
Slide 8: Supply cost: Liquefaction business
Supply cost: Liquefaction business LNG liquefaction projects are merchant gas processing businesses. These businesses must source the lowest cost gas supply from the market, be that ‘equity’ or third party gas. For personal use only The cost of gas supply is the one area of the business value chain
Slide 9: Supply cost: Focus moving to cost of supply
Supply cost: Focus moving to cost of supply Dramatic changes in the Eastern Australia gas demand profile have been driven by construction of six LNG trains at Gladstone. These trains will account for 30 Tcf of the 40 Tcf demand profile over the next twenty years. For personal use only During the ram
Slide 10: Eastern Australian Gas Supply: Summary
Eastern Australian Gas Supply: Summary For personal use only Gas demand ~40 Tcf over twenty years; LNG the dominant gas buyer LNG merchant business Operating cash flows highly leveraged to gas supply cost Cost curve Eastern States gas market cost curve is very steep Addressable market 10 - 20 Tcf ad
Slide 11: Gas resource: Strike's Southern Cooper Basin Gas Project
Gas resource: Strike’s Southern Cooper Basin Gas Project 2C Moomba Prospective Contingent For personal use only Resource Resource* PEL 96 4,492 Bcf* Marsden 1 PEL 96 Phase 1,123Bcf* 104 Bcf One Area PEL 94 PEL 95 Davenport 1 STX 35% STX 50% Mount Isa Le Chiffre 1 Gladstone Klebb production testing a
Slide 12: Unit Cost of Supply: Economics of Strike's Southern Cooper Coals
Unit Cost of Supply: Economics of Strike’s Southern Cooper Coals Strike’s demonstrated cost structure will drive competitive unit production costs for wells that recover greater than 3PJ. For personal use only Production type curve - long stable phase PEL 96 well full cycle costs (undiscounted) (1)
Slide 13: Unit cost of supply: Cost curve
Unit cost of supply: Cost curve Strike’s Southern Cooper Basin Gas Project has the potential to be a low cost gas producer. For personal use only 1 Strike Southern Cooper PEL 96 Estimated unit cost of supply $/GJ Eastern Australian demand (PJ) 10,000 20,000 30,000 40,000 50,000 1 New STX target supp
Slide 14: Southern Cooper Basin Gas Project: Klebb pilot test program
Southern Cooper Basin Gas Project: Klebb pilot test program For personal use only K3 K1 K2 Vu Upper frac Vu Upper (35m seam) Klebb 3 Klebb 1 Klebb 2 FRAC DETAILS Proppant pumped 104,000 lbs 59,000 lbs 125,800 lbs Fluid pumped 1,780 bbls 460 bbls 1,803 bbls PUMP TYPE Jet Beam Jet Flow testing of the
Slide 15: Value Creation: Klebb – flow test results
Value Creation: Klebb 1 – flow test results The Klebb 1 single stage flow test is a small scale test of potential flow rates achievable from a commercial development well. For personal use only Development Well Klebb 1 Flow Test Target commercial gas Three completion zones Single stage Vu Upper flow
Slide 16: Value Creation: Future cash flow potential
Value Creation: Future cash flow potential Strike is targeting a low unit cost of supply that will deliver strong operating cash flows in the stable production phase. Future value will be driven by per well operating cash flows and the size of the resource in Strike’s permit areas that could ultimat
Slide 17: Strike's Southern Cooper Basin Gas Project: An emerging 'sweet spot'
Strikes Southern Cooper Basin Gas Project: An emerging ‘sweet spot’ For personal use only GAS GAS UNIT COST VALUE MARKET RESOURCE OF SUPPLY CREATION Cost of supply defines Full life cycle Operating available market PEL 96 prospective well cost / EUR cash flow resource 10 - 20 Tcf addressable 4.5 Tcf
Slide 18: Important Notice
Important Notice This presentation does not constitute an offer, invitation or recommendation to subscribe Contingent Resource Estimate For personal use only for, or purchase any security and neither this presentation nor anything contained in it shall form the basis of any contract or commitment. D
Slide 19: Important Notice
Important Notice Competent Persons Statement The information in this presentation that relates to the PEL 96 contingent resources estimate has For personal use only been taken from the independent reports as prepared by DeGolyer and MacNaughton, a leading independent international petroleum industry