Strike Energy Limited · ASX:STX
Strike Energy — Strike Oil — Shareholder Meeting (November 2007)
45 slides from Strike Energy's shareholder meeting presentation, Nov 19, 2007
Slide 1: Chairman's Address and AGM Presentation
ASX Announcement ASX Code: STX 19 November 2007 For personal use only Strike Oil Limited ABN 59 078 012 745 The Company Announcement Officer Australian Stock Exchange Ltd via electronic lodgement Our Strengths • Producer/Explorer with CHAIRMAN’S ADDRESS AND AGM PRESENTATION strong cash flow • Track
Slide 2: Chairman's Address November 2007 AGM
Strike Oil Chairman’s Address November 2007 AGM Welcome to the 2007 AGM. Today, some three and half years since listing, Strike Oil is at an For personal use only important stage in its development. We believe the company is well positioned in both the United States and Australia to realise strong v
Slide 3: Chairman's Address (continued)
judged to be commercial. An overall success rate of 50% has therefore been achieved. Gas prices in the United States are expected to remain strong and the extensive gas infrastructure enables any discovery to be put into production quickly – generally within weeks compared to much longer lead times
Slide 4: Chairman's Address: Florence project
At the Florence project area, also in Colorado, the Operator has completed an 8 sq mile 3D seismic survey and is proposing to drill three wells in early 2008 - these drill locations are yet to be approved. These wells are shallower than the Tow Creek wells (generally 4000 ft vs 6600 ft) and will be
Slide 5: Chairman's Address: Hybrid Energy SA
Hybrid Energy SA Pty Ltd During this past year considerable progress has been made by the company in developing its FuturGas Project based around a large lignite (brown coal) deposit in the southeast of South Australia. A scoping study has been completed which has demonstrated that a state of the ar
Slide 6: Chairman's Address: people and closing
board and management’s task is to mitigate these risks and ensure that returns on success are appropriate. I trust this address and the following presentations will give you a good sense of how we are endeavouring to go about that task. Any company can only be as good as its people. Our management a
Slide 7: Annual General Meeting Activities Update
For personal use only ANNUAL GENERAL MEETING ACTIVITIES UPDATE Perth, Western Australia 19 November 2007
Slide 8: Presentation parts and presenters
For personal use only Part 1 – Strike Oil Limited Presenter – Managing Director, Simon Ashton Part 2 – Hybrid Energy SA Pty Ltd Presenter – Managing Director, Barry Ford
Slide 9: Part 1 – Strike Oil Limited
For personal use only Part 1 – Strike Oil Limited Presenter – Managing Director, Simon Ashton
Slide 10: Highlights 2006/07 Year
HIGHLIGHTS 2006/07 YEAR • PRODUCTION 06/07 (to Strike Oil’s interest) For personal use only GAS 0.79 Bcf (UP 136%) OIL 15,870 BARRELS (UP 146%) • REVENUES 06/07 (to Strike Oil’s interest) $8.6 MILLION (UP 140%) • RAYBURN, A MAJOR NEW GAS DISCOVERY (DUNCAN 1), TEXAS • HYBRID ENERGY SA “FuturGas PROJE
Slide 11: Corporate Objective
CORPORATE OBJECTIVE TO ADD VALUE AND GET VALUE INTO THE SHARE PRICE For personal use only • Strike Oil has a large bank of projects • Many projects at critical value add stages over next few months Share Price over Trade Volume Shares on issue 327.16 million 1 July 2006 to 31 October 2007 Options on
Slide 12: Areas of Activity
AREAS OF ACTIVITY For personal use only UNITED STATES Rocky Mountains Carnarvon Basin Gulf Coast Cooper Basin FuturGas AUSTRALIA MULTIPLE PLAYS IN MAJOR OIL AND GAS PRODUCING REGIONS
Slide 13: Gulf Coast - A Major Gas Play
GULF COAST - A MAJOR GAS PLAY • Two commercial discoveries from three For personal use only deep Wilcox wells • Mesquite - Gas discovery • Flint - Non commercial gas discovery • Rayburn - Gas discovery • Current production 5.5MMcf and 60 bbl oil per day (Gross). • Active ongoing exploration and deve
Slide 14: Rayburn - Discovery
RAYBURN - DISCOVERY For personal use only RAYBURN PROJECT (WI 22.8%, NRI ~16 to 17%) • Potential for multiples of 100’s Bcf • Very large structure confirmed with Duncan 1 and supported by 3-D seismic interpretation (~10,000 acres under lease) • Multiple gas pay horizons between 11,500-16,000 feet (W
Slide 15: Rayburn Project - Status
RAYBURN PROJECT - STATUS For personal use only • Duncan 1 well (16,500 feet) – Deeper lower quality pay interval (Lower Wilcox) tested at 0.5 million cubic feet per day. – Shallower higher quality pay interval (Middle Wilcox) yet to be tested • Duncan 2 well (12,200 feet) – Sidetrack drilling Duncan
Slide 16: Indicative Costs, Gas Volumes and Gross Values
INDICATIVE COSTS, GAS VOLUMES AND GROSS VALUES For personal use only Individual Well, Completion Target Gas Gross Value and Testing Costs Volumes per Well @ US$7/Mcf Middle Wilcox Well (~12,000 US$6 million 3 - 5 Bcf US$21 - 35 million feet) Lower Wilcox Well (~16,000 feet) US$12 million 5 - 10 Bcf
Slide 17: Rayburn Potential Values
RAYBURN POTENTIAL VALUES For personal use only Gross Gas Bcf 100 200 300 400 500 Net Gas (Strike Oil) Bcf 17 34 51 68 85 Potential Value $ Net to Strike Oil at Millions 85 170 255 340 425 NPV, AUD$5/Mcf Potential Value Per Strike Oil Share Cents +26 +52 +78 +104 +130 SIGNIFICANT LEVERAGE TO CURRENT
Slide 18: Gulf Coast - Ongoing Program
GULF COAST - ONGOING PROGRAM • Six development and exploration wells planned in next 12 months For personal use only • US$15 million program (Strike Oil share) • Revenues forecast to grow from $8.6 million to >$20 million next year (08/09) (based on Mesquite and successful Rayburn development) • Wel
Slide 19: Rocky Mountains – Oil Play
ROCKY MOUNTAINS – OIL PLAY Florence Project (WI 39%) For personal use only • 3D seismic acquired and interpreted • Excellent results, many targets • Drilling planned for Q1 2008 • Gross potential 200,000 barrels per well Tow Creek/Bear River Projects (WI 33 to 37%) • Operational drilling challenges
Slide 20: Carnarvon Basin – Oil and Gas Plays
CARNARVON BASIN – OIL AND GAS PLAYS POSITION For personal use only • Large “shallow water” acreage position – Oil prone area – Renewed attention to gas prospects (high gas prices) • Securing a shallow water, cost efficient, drilling rig for multi well program KEY PROSPECTS Gross Working Target Size
Slide 21: Rivoli Gasfield Development
RIVOLI GASFIELD DEVELOPMENT • Strike Oil 44.5% (Operator) For personal use only • FEED study completed and evaluation continues in agreement with Commonwealth Government Dept of Defence • Supply gas to remote power project (8PJ’s over 20 years) • Seed project and infrastructure for: – Expansion thro
Slide 22: Cooper Basin – Oil Play
COOPER BASIN – OIL PLAY For personal use only ATP 633-P (WI 15%) (SW Queensland) • 3D and 2D seismic interpretation ongoing • Kewarra 1, non-commercial oil discovery (06/07 year) • Next well planned for early 2008 (likely on the large Phi structure with 10 million barrel oil potential)
Slide 23: The Next Months in Summary
THE NEXT 12 MONTHS IN SUMMARY • Secure a suitable shallow Ongoing oil evaluation at Tow water drilling solution Creek, Bear River and Florence For personal use only • Rivoli Gasfield Operator - Comet Ridge UNITED STATES Development Approval Operator - Strike Oil Rocky Mountains Gulf Coast Carnarvon
Slide 24: Project Pipeline 2007
PROJECT PIPELINE 2007 For personal use only Exploration Appraisal Development Production USA USA USA USA Gulf Coast Mesquite Mesquite Mesquite Flint Rayburn Rayburn Rayburn Tow Creek Rodeo Bear River Others Florence AUSTRALIA AUSTRALIA AUSTRALIA AUSTRALIA Cooper Basin Rivoli Rivoli (FEED) Phi Leathe
Slide 25: Funding Strategy
FUNDING STRATEGY For personal use only ONGOING PROGRAM TO BE FUNDED BY:- • CASH FLOW • DEBT • RECENT EQUITY RAISING ($10 MILLION ENTITLEMENT ISSUE) • SELECTED FARMOUTS • DEMERGER AND PUBLIC LISTING OF HYBRID ENERGY SA INCREASING CASH FLOW PROVIDES FUNDING FLEXIBILITY
Slide 26: Key Company Differentiators
KEY COMPANY DIFFERENTIATORS • GROWING CASH FLOW For personal use only • SEVERAL PROJECTS ON THE VERGE OF VALUE ADD – Rayburn Development – Hybrid Energy Establishment – Rivoli Development – Florence Drilling – Cooper Basin Drilling – Carnarvon Basin Drilling Solution • PROVEN AND CONTINUING TRACK RE
Slide 27: Part 2 – Hybrid Energy SA Pty Ltd
For personal use only Part 2 – Hybrid Energy SA Pty Ltd Presenter – Managing Director, Barry Ford
Slide 28: November 2007
For personal use only 19 November 2007
Slide 29: "FuturGas" Project
“FuturGas” Project For personal use only A unique energy and power opportunity for South Australia presentation by Barry Ford Managing Director Hybrid Energy SA Pty Ltd 19 November 2007
Slide 30: Introduction
INTRODUCTION Hybrid Energy For personal use only 100% subsidiary of Strike Oil Limited Holds 100 % interest in petroleum exploration and minerals exploration licenses in the North Otway basin near Kingston, South Australia. Coal resource is JORC compliant (578 million tonnes) with 3-4 trillion cubic
Slide 31: Project Highlights
PROJECT HIGHLIGHTS For personal use only The FuturGas Project is A business with control of the full value chain from resource to market A unique opportunity to develop an environmentally responsible generation initiative based on commercially proven technology Providing a path to zero emissions thr
Slide 32: Strategic Location
STRATEGIC LOCATION For personal use only Close proximity to major energy and transportation infrastructure SA/VIC 275kV transmission lines SEAGas natural gas pipeline Rail lines Port facilities Interconnection to National Electricity Market with access to growing South Australian electricity
Slide 33: Resource Strength
RESOURCE STRENGTH For personal use only • JORC compliant resource (578 million tonnes) with 3-4 trillion cubic feet of gas potential on conversion • Comprehensively mapped and explored in the 1980’s • Ownership of vast geological mapping and data sets based on 550 bore holes Property Kingston Coal G
Slide 34: Mining Aspects
MINING ASPECTS Readily accessible lignite For personal use only Seam 8-12 meters in thickness 40-60 meters below surface Mining rate of 2 - 2.5 million tonnes per annum for 300 MW plant Small footprint mining Driven by environmental aspects of native vegetation, water and landscape Pits are reclaime
Slide 35: Project Diversity
PROJECT DIVERSITY For personal use only 5 – 7 Years Product Flexibility and Evolution 8 - 10 Years >10 Years transition to sustainable energy future
Slide 36: Environmental Credentials
ENVIRONMENTAL CREDENTIALS Immediate emissions benefits For personal use only Proven low emissions Circulating Fluid Bed Combustion (CFBC) technology 35% lower CO2 emissions than current conventional SA coal generation Ongoing pathway to zero emissions Gasification of lignite Pre and post carbon capt
Slide 37: Pathway to Zero Emissions
PATHWAY TO ZERO EMISSIONS Typical Victorian brown FuturGas Project For personal use only coal pf steam turbine 1.2 (Playford) Coal (Pf Steam Turbine) (Northern) 1.0 Typical back coal Introduction of low emissions CFBC Technology PF steam turbine Emissions Tonne CO2/MW (Dry Creek) 1 Confirmation of C
Slide 38: South Australia's Energy Landscape
SOUTH AUSTRALIA’S ENERGY LANDSCAPE For personal use only Electricity Demand Rising Potential expansion of Olympic Dam from 150 to 600MW Pipeline of new resource developments Steady regional industrial growth Natural Gas (World parity pricing?) Cooper Basin supplies reducing Uncertainty in supply fro
Slide 39: Value Add Steps
VALUE ADD STEPS Key Milestones For personal use only Board and Management December 2007 Initial Public Offering March 2008 Combustion Feasibility Studies Complete February 2010 Project Decision to Proceed March 2010 First Electricity Sales 2013 – 2015 Initial Public Offering (IPO) Demerger of Hybrid
Slide 40: Project Development Status
PROJECT DEVELOPMENT STATUS Key Technical Studies Completed For personal use only Clean Coal Technology Carbon Capture and Storage Lignite Mining Ground Water Management Initial power generation phase evaluated and appears commercial Feasibility Program commencing in 2008 Process Engineering Mining E
Slide 41: The Way Forward
THE WAY FORWARD For personal use only • Key management and project team being established in Adelaide • Demerge Hybrid Energy from Strike Oil • Comprehensive technical Feasibility Study due to commence April 2008 – with a key focus on identifying environmental preservation initiatives and leading- e
Slide 42: Summary
SUMMARY For personal use only FuturGas Project is A business with control of the full value chain from resource to market A unique opportunity to develop an environmentally responsible generation initiative based on commercially proven technology Providing a path to zero emissions through the develo
Slide 43: FuturGas Project – End
FuturGas Project For personal use only END Commercially viable low emissions power
Slide 44: ASX Code: STX
For personal use only ASX Code: STX www.strikeoil.com.au
Slide 45: 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 For personal use only commitment. Reliance should not be place on the