Strike Energy Limited · ASX:STX
Strike Energy — Shareholder Meeting (November 2019)
26 slides from Strike Energy's shareholder meeting presentation, Nov 14, 2019
Slide 1: Chairman's Address and AGM Presentation
ASX Announcement ASX: STX The Company Announcement Officer ASX Ltd via electronic lodgement 14 November 2019 Chairman’s Address and For personal use only AGM Presentation Please find attached the following items to be presented at Strike Energy Limited’s Annual General Meeting to be held at 10.00am
Slide 2: Chairman's Address Annual General Meeting
STRIKE ENERGY LIMITED CHAIRMAN’S ADDRESS ANNUAL GENERAL MEETING 14 NOVEMBER 2019 For personal use only Ladies and Gentlemen, The board and management of Strike spent the 2019 financial year positioning the Company for exploration success in the Southern Cooper Basin in South Australia and the Perth
Slide 3: Annual General Meeting Presentation 14th November 2019
For personal use only Annual General Meeting Presentation 14th November 2019
Slide 4: Important Notice
Important Notice Summary information Subject to any continuing obligations under applicable law and the Listing Rules of ASX This presentation contains summary information regarding Strike Energy and its subsidiaries Limited, Strike Energy Limited does not undertake any obligation to publicly update
Slide 5: Company snapshot
Company snapshot Board of Directors Strike Register Strike Portfolio – West & East For personal use only Non-Exec Chairman 4% 2% Perth Basin John Poynton AO Cit WA 16% Conventional Gas Australian Business Leader Fields Southern Cooper Governance & Finance Basin Gas Project Non-Exec D. Chairman Nev P
Slide 6: Key investment themes
Key investment themes Major gas More than 1.1 tcf gross 2C contingent For personal use only resources resource1 of high-quality conventional gas Strike is funded to deliver its FID on Phase-1 Well capitalised and commence its exploration campaign Market demand Supportive and tightening WA gas market
Slide 7: West Erregulla gas field & the Permian gas fairway
West Erregulla gas field & the Permian gas fairway North Perth Basin Gas Discoveries West Erregulla Resources1 For personal use only (STX Share, bcf) Waitsia Gas STX 50% & 137 Field Operator 91 730 502 STX 100% West Erregulla Gas Field Kingia High Cliff Wagina West Beharra Springs Deep discovery P50
Slide 8: Strike has a very strong position in WA energy and gas markets
Strike has a very strong position moving into the next decade of WA energy and gas markets For personal use only P ro s p e c tive W.A. G a s Strike W.A. Gas Portfolio Ma rke t ? volume of new Dependent on Development Ready supply future projects cost of Rising up the cost Low cost supply curve timi
Slide 9: The WA Gas Landscape
The WA Gas For personal use only Landscape Perth Basin Strategy
Slide 10: Western Australian domestic gas supply in delicate balance
Western Australian domestic gas supply in delicate balance Existing Domestic Market & Prospective Supply For personal use only 1,500 TJ/d 40 Technically challenging 100 Targeting bigger 555 TJ volumes into export 1,000 facilities 120 TJ/d 500 270 Delays due to commercial issues 0 2019 2020 2021 2022
Slide 11: Western Australian drilling activity
Western Australian drilling activity Lower drilling activity results in fewer For personal use only Exploration and production wells drilled per Basin by year discoveries and fewer sources of prospective supply. 194 180 80-95% of wells drilled have been 158 offshore during this time. 108 Offsh
Slide 12: WA has a major domestic gas network searching for new feedstock
WA has a major domestic gas network with growth opportunities that and is searching for new feedstock Declining gas production Utilised Capacity (prev 12 months) WA is coming out of an era of evidenced by under utilisation of capacity Unused Capacity For personal use only robust gas supply resulti
Slide 13: WA majors to choose LNG over domestic gas
WA majors to choose LNG over domestic gas Emerging global LNG supply-demand gap For personal use only mtpa Predicted rise of LNG prices 750 attributable to short global supply in 2025+ will mean WA LNG infrastructure owners will 500 ~300 mtpa gap preference converting gas into LNG over servicing d
Slide 14: WA gas prices rising as a function of future projects
WA gas prices rising as a function of future projects Reference prices for the WA domestic gas market Market is currently in balance For personal use only with a long term gas contract 10 price of $4.10 - $5.12/GJ. 8 These contracts are based on projects with an average cost of supply at ~$3/GJ.
Slide 15: WA electricity – gas to facilitate renewables uptake
WA electricity – gas to facilitate renewables uptake WA average daily electricity generation by fuel¹ Emissions intensity of black coal versus gas for electricity generation (CO2e/MWh)² For personal use only 11% Coal Gas 1.0 Wind 45% Other -61% 0.5 42% 0.0 Coal Gas (CCGT) German daily electricity ge
Slide 16: West Erregulla & Development Strategy
West Erregulla & For personal use only Development Strategy Perth Basin Strategy
Slide 17: West Erregulla - from discovery to production
West Erregulla - from discovery to production Strike proposes phasing West Erregulla’s West Erregulla development phases development For personal use only A smaller initial development will: o deliver early positive cashflow o facilitate senior debt procurement Phase 2 o reduce initial capital req
Slide 18: Strike's position in the value chain
Strike’s position in the value chain Strike will focus on the upstream segment of the value chain to: For personal use only 1. Drive capital into the highest returning segments 2. Reduce capital intensity by partnering with established mid-stream companies 3. Preserve capital for drilling and ongoin
Slide 19: Existing infrastructure makes for a fast & simple development
Existing infrastructure makes for a fast & simple development Mondarra (APA), For personal use only Beharra Springs (Beach) and new Mondarra build domestic gas Gas Plant plants are the current options for assessment. West Erregulla WE-2 was Gas Field completed as a future producer as will the up
Slide 20: Options for Phase-2 development
Options for Phase-2 development WA Gas Market North Perth Basin Gas Discoveries For personal use only flexible volumes ~1,200 TJ/d CSBP Offtake Option – 100 PJ Size Quality Cost Output Pilbara Gas Market Expansion 300 TJ/d market with Next to 57 TJ/d growth expected Low Pipeline CO2 Some of the Chem
Slide 21: Opportunity realisation timeline
Opportunity realisation timeline Activity 2019 2020 2021 2022 only Appraisal Phase 1 Upstream drilling use West Erregulla Planning & Commission Phase 1 Midstream Tender Permitting, Procurement, Construction & Startup Production personal Phase 2 Downstream Studies Phase 2 Midstream Planning & Tender
Slide 22: Operational Plan
Operational Plan For personal use only Perth Basin Strategy
Slide 23: Perth Basin – appraisal and exploration program objectives
Perth Basin – appraisal and exploration program objectives Development For personal use only West Erregulla West Erregulla Phase 1 Concept Select 502 BCF 2C net1 West Erregulla Phase 1 FID Appraisal Ocean Hill Confirm Kingia reservoir characteristics, flow tests 360 BCF 2C net1 and reserve boo
Slide 24: Delivering results and establishing a track record of success
Delivering results and establishing a track record of success Strike portfolio events For personal use only WE2 WE2 Seismic WE Phase 1 WE appraisal WE Phase 1 flow test resource campaign concept drilling FID statement starts select October ‘19 Strike Energy Other Perth Basin events Beharra Springs T
Slide 25: Southern Cooper Basin Gas Project – Jaws Appraisal Project
Southern Cooper Basin Gas Project Jaws Appraisal Project For personal use only Progressing towards an outcome Drawdown continuing with water production approximately 300 bbls/d and instantaneous gas production rates up to 50 mscf/d. Bottom hole pressures of 224 psi nearing The Jaws appraisal pro
Slide 26: For personal use only
For personal use only