Strike Energy Limited · ASX:STX
Strike Energy — Shareholder Meeting (November 2012)
25 slides from Strike Energy's shareholder meeting presentation, Nov 21, 2012
Slide 1: ASX Announcement: Chairman's Address and AGM Presentation
ASX Announcement Strike Energy Limited ABN 59 078 012 745 21 November 2012 For personal use only OUR FOCUS The Company Announcement Officer COOPER BASIN ASX Ltd 4 million net acres, including via electronic lodgement over 1 million net acres with unconventional potential EAGLE FORD SHALE Partici
Slide 2: Chairman's Address
STRIKE ENERGY LIMITED CHAIRMAN’S ADDRESS ANNUAL GENERAL MEETING – 21 NOVEMBER 2012 For personal use only Ladies and Gentlemen, The past 12 months has seen significant progress in our key projects – the Eagle Ford Shale in the US and the Southern Cooper Basin in South Australia. Both projects are dri
Slide 3: Chairman's Address (continued)
Whilst Strike’s Southern Cooper Basin and Eagle Ford Shale assets provide shareholders with exciting prospects in two world-class unconventional basins, there is significant potential value in the company’s other assets. The Company’s Carnarvon Basin conventional oil and gas exploration acreage is e
Slide 4: Annual General Meeting November 2012
For personal use only ANNUAL GENERAL MEETING 21 November 2012
Slide 5: Contents
CONTENTS For personal use only STRIKE ENERGY – 2012 REVIEW EAGLE FORD SHALE SOUTHERN COOPER BASIN CARNARVON BASIN PRODUCING ASSETS Page 1
Slide 6: Strike Energy 2012 Review
For personal use only STRIKE ENERGY 2012 REVIEW Page 2
Slide 7: 2012 Achievements
2012 ACHIEVEMENTS For personal use only EAGLE FORD SHALE • Increased lease position from 5,000 to over 10,000 net acres • Drilled Bigham 1H production test well • Successful frac completion and flow back operations underway COOPER BASIN • Drilled Marsden and Davenport wells • Discovered very thick c
Slide 8: Company Overview
COMPANY OVERVIEW For personal use only SNAPSHOT (20 November 2012) NEAR TERM VALUE DRIVERS Corporate office Sydney, Australia • Eagle Ford Shale production test results US operations base Houston, USA • Carnarvon Basin Palta prospect drilling David Wrench – Managing Director Key management Chris Tho
Slide 9: Key Unconventional Assets
KEY UNCONVENTIONAL ASSETS For personal use only EAGLE FORD SHALE SOUTHERN COOPER BASIN Eagle Ford Shale Trend Oil Fairway Gas Condensate Fairway Strike’s lease area Gas Fairway Strike’s Lease Area Davenport 1 Marsden 1 ~37,900 (gross) / ~10,400 (net) acres in the Eagle Ford Shale 16,000 km2 / 4 mill
Slide 10: The Eagle Ford Shale
For personal use only THE EAGLE FORD SHALE LEVERAGE TO THE USA’S PREMIER UNCONVENTIONAL LIQUIDS PLAY Page 6
Slide 11: USA's Premier Unconventional Liquids Play
USA’S PREMIER UNCONVENTIONAL LIQUIDS PLAY For personal use only THE EAGLE FORD SHALE TREND LIQUIDS RICH • Eagle Ford Shale produces high-value oil and condensate • Over-pressured formations generate strong flow rates • Superior economics to dry gas plays HEIGHTENED ACTIVITY • Over 2,800 drilling per
Slide 12: Strike About to Commence Production
STRIKE ABOUT TO COMMENCE PRODUCTION For personal use only STRIKE’S LEASE AREA SANCHEZ ENERGY Sante 1H BIGHAM 1H TESTING Completing Prost A 1H • Flow back operations underway 24 hour 1P, 1,120 Boe/d Prost A 2H 24 hour 1P, 1,369 Boe/d REGIONAL DE-RISKING UNDERWAY Prost B 1H Awaiting frac • Strong prod
Slide 13: Bigham 1H Production Testing
BIGHAM 1H PRODUCTION TESTING For personal use only PRODUCTION TESTING UNDERWAY • Flowback operations have been underway for 30 days with oil production commencing after 9 days • Current production rates (19 November) TOTAL FLUID OIL WATER GAS OIL CUT 1,200 Bbl/day 240 Bbl/day 960 Bbl/day 520 Mcf/d ~
Slide 14: Southern Cooper Basin
For personal use only SOUTHERN COOPER BASIN A LARGE POSITION WITHIN AUSTRALIA’S LEADING UNCONVENTIONAL PLAY Page 10
Slide 15: Australia's Most Prospective Unconventional Region
AUSTRALIA’S MOST PROSPECTIVE UNCONVENTIONAL REGION For personal use only FORECAST AUSTRALIA GAS CONSUMPTION GAS DEMAND FORECAST TO TRIPLE BY 2016 + 2,500 PJ/a + 1,700 PJ/a • Demand from Queensland LNG plants under construction plus To be sourced To be sourced increased role for gas in the clean ener
Slide 16: Southern Cooper Basin Opportunity
SOUTHERN COOPER BASIN OPPORTUNITY For personal use only UNIQUE CSG OPPORTUNITY • Thickest coals in the Cooper Basin • 1,500 - 2,000 metres depth • Potential gas saturated coals • Adjacent to existing pipeline infrastructure • Accelerated 2013 program to meet increasing east coast gas market demand S
Slide 17: Key Parameters for Resource Plays
KEY PARAMETERS FOR RESOURCE PLAYS For personal use only TOTAL ORGANIC CONTENT (%) Sth Cooper CSG Shallow CSG High total organic content available Cooper REM Shale to generate hydrocarbons THICKNESS (m) Sth Cooper CSG Shallow CSG Thickness X area X gas content = Cooper REM Shale gas-in-place Sth Coop
Slide 18: Southern Cooper Basin CSG Opportunity
SOUTHERN COOPER BASIN CSG OPPORTUNITY For personal use only High Cooper REM shale gas 30-50 Completion complexity Bcf/km2 Cooper CSG 30-50 Bcf/km2 Shallow CSG <10 Bcf/km2 Low Estimated production well cost High Page 14
Slide 19: Value Creation Strategy
VALUE CREATION STRATEGY For personal use only UNCONVENTIONAL ACREAGE & CONFIRM RESOURCE POTENTIAL CAPITALISATION v PEERS • Evaluation drilling has confirmed coal and shale thicknesses • Existing seismic shows formations extend across wide area • Lab analysis has confirmed encouraging hydrocarbon con
Slide 20: Carnarvon Basin
For personal use only CARNARVON BASIN OPTION VALUE FROM PALTA DRILLING Page 16
Slide 21: Large Prospect Currently Drilling
LARGE PROSPECT CURRENTLY DRILLING For personal use only CARNARVON BASIN – PALTA PROSPECT (WA 460 P) CARNARVON BASIN PERMITS • Five permits – 1,200 km2 (net) • Four operated by Strike • High working interests – average 44% PALTA PROSPECT • 13.5 Tcf gas-in-place estimated by Strike • Approximately 20%
Slide 22: Producing Assets
For personal use only PRODUCING ASSETS CASHFLOW FROM CONVENTIONAL PRODUCTION Page 18
Slide 23: Conventional Production, With Upside
CONVENTIONAL PRODUCTION, WITH UPSIDE For personal use only PERMIAN BASIN, TEXAS LOUISE FIELD, TEXAS (Eaglewood Joint Venture) Production (2011/12) 7,135 Boe (7 months) 680 MMcfe Revenues (2012/13 F) ~$1 million ~$3.0 million Reserves (30 June 2012) 344,000 Boe 3.9 Bcfe Recent activity Acquired Novem
Slide 24: Active Exploration and Development Program
ACTIVE EXPLORATION AND DEVELOPMENT PROGRAM For personal use only 2013 KEY DEVELOPMENT OBJECTIVES • EAGLE FORD SHALE – demonstrate commercial production over a broad expanse of Strike’s lease area • SOUTHERN COOPER BASIN – flow test hydrocarbons from coal and shale formations Oct Nov Dec Jan Feb Mar
Slide 25: Important Notice
IMPORTANT NOTICE For personal use only IMPORTANT NOTICE 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 shou