Strike Energy Limited · ASX:STX
Strike Energy — Strike Oil — RIU Good Oil Conference 2008
21 slides from Strike Energy's conference presentation, Sep 3, 2008
Slide 1: Good Oil Conference Presentation
ASX Announcement ASX Code: STX 3 September 2008 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 "GOOD OIL CONFERENCE" PRESENTATION with strong cash flow Find attached
Slide 2: A Year of Growth
For personal use only “A YEAR OF GROWTH” Good Oil Conference, 2‐3 September 2008, Fremantle , Western Australia
Slide 3: A Year of Growth
A YEAR OF GROWTH ¾ Production GROWTH Gas (net) 1.61 mmcf/d 8.02 mmcf/d For personal use only (1/7/07‐30/6/08) Oil (net) 24 bbl/d 196 bbl/d ¾ Revenue GROWTH $10.2 million $17.8 million (06/07‐07/08) ¾ Strong Financial • Increasing cash flows – Currently ~ $4 million per month Position • Debt facility
Slide 4: Production Growth Forecast
PRODUCTION GROWTH FORECAST QUARTERLY PRODUCTION (Strike Oil Working Interest) For personal use only September 2008 Quarter Quarterly Gas (mmcf) & Oil (bbl) Production Gas 750 mmcf 800 25,000 700 22,500 Oil 20,000 bbl 20,000 600 17,500 500 15,000 Average Daily Production MMCF/QRT BBL/QRT 400 12,500 3
Slide 5: Annual Revenue Growth
ANNUAL REVENUE GROWTH Annual Oil and Gas Revenue For personal use only 70 Gulf Coast Gulf Coast Actual Forecast 60 Mesquite Rayburn 55.0 ANNUAL REVENUE GROWTH Discovery Discovery (06/07 to 07/08) 50 • Up 87% 40 $ Millions FORECAST GROWTH 30 (07/08 to 08/09) 15.7 • 3 to 4 fold increase to 20 $50‐55 m
Slide 6: Strategy - Areas of Growth
STRATEGY ‐ AREAS OF GROWTH For personal use only • Baniyas prospect drilling UNITED STATES • Rivoli gasfield development potential • Securing shallow water drilling rig Carnarvon Gulf Coast Basin Cooper Basin AUSTRALIA • 3 to 4 fold production growth FuturGas • Ongoing drilling, development and expl
Slide 7: Strategy - 2008/09 Focus
STRATEGY ‐ 2008/09 FOCUS STRIKE OIL For personal use only CONVENTIONAL NON‐CONVENTIONAL NEW VENTURES PETROLEUM PETROLEUM & ENERGY & BUSINESS BUSINESS BUSINESS DEVELOPMENT Development & Exploration & ‐ FuturGas ‐ Australian NV Production Appraisal • CTL (Hybrid Energy) ‐ Gulf Coast ‐ Gulf Coast ‐ Sou
Slide 8: Strategy - Funding
STRATEGY ‐ FUNDING For personal use only Ongoing program to be funded by:‐ A$ ¾ Current Cash $7.0 million (31/7/08) ¾ Gross Revenue (forecast) $50‐55 million (2008/09) ¾ Debt Facility (CBA) $12.2 million ($7.6 million drawn down) ¾ Partnering Additional project funding INCREASING CASH FLOW PROVIDES
Slide 9: Conventional Petroleum Business - USA: Gulf Coast Snapshot
CONVENTIONAL PETROLEUM BUSINESS ‐ USA GULF COAST – SNAP SHOT For personal use only FOCUS Wilcox Trend onshore and shallower secondary objectives Exploration Wells 2 successful wells out of 3 Development/Appraisal 9 successful wells out of 10 SUCCESS RATE _______________________ Total 11 successful w
Slide 10: Gulf Coast - Quality Production
GULF COAST – QUALITY PRODUCTION CURRENT PRODUCTION Gas Oil STX For personal use only mmcf/d bbl/d WI Mesquite (from 4 wells) 3.8 65 ~ 26.25% Rayburn (from 5 wells) 42.7 1,110 ~ 22.8% _______________ Total (from 9 wells) 46.5 1,175 _______________ NO MATERIAL PRODUCTION DECLINE FROM INDIVIDUAL WELLS
Slide 11: Gulf Coast - Gas Reserves / Resources
GULF COAST – GAS RESERVES / RESOURCES CURRENT PROJECTS STRIKE RESERVES / RESOURCE GROSS SIZE STRIKE NET For personal use only WORKING CLASSIFICATION Gas Potential WORKING INTEREST (Bcf) INTEREST (Bcf) Mesquite 26.25% Proved 8 2.1 Rayburn* 22.8% Prospective resource 500 114.0 Flint 35% Prospective re
Slide 12: Gulf Coast - Potential Value Range
GULF COAST – POTENTIAL VALUE RANGE POTENTIAL NET TO RISK RISKED NET VALUE TOTAL RISKED SIZE STRIKE TO STRIKE US$/Mcf VALUE For personal use only Bcf Bcf Bcf US$ MILLIONS MESQUITE PROJECT Proved 8 2.1 90% 1.9 $4.50 $8 RAYBURN PROJECT Prospective resource 300 ‐ 500 68 – 114 40% 27 – 45 $4.00 $108 – 18
Slide 13: Conventional Petroleum Business - Australia
CONVENTIONAL PETROLEUM BUSINESS – AUSTRALIA CARNARVON BASIN COOPER BASIN For personal use only ¾ Securing shallow water, cost effective drilling rig for ¾ Major review of assets and priorities a multi well program ¾ First well to test 111 Bcf (P10) Baniyas Project ¾ PELA 71 and PELA 96 progressing t
Slide 14: Non-Conventional Petroleum / Energy Business
NON‐CONVENTIONAL PETROLEUM / ENERGY BUSINESS Bowen/Galilee Basins FUTURGAS PROJECT Coal Seam Gas interest For personal use only • Coal Gasification 8.3% shareholding in Comet • Coal to Liquids 10,000 Ridge Limited (ASX COI) bpd liquids plus power Cooper Basin Strike Oil 100% Coal Seam Gas shareholdi
Slide 15: Hybrid Energy - FuturGas Project
HYBRID ENERGY – FUTURGAS PROJECT ¾ Proposed production of 10,000 barrels of liquid fuels per day, from surface coal gasification For personal use only ¾ Revenue potential of A$400 million per annum ¾ Pre‐Feasibility Study scheduled for completion in the first half of 2009 then progressing to bankabl
Slide 16: Southern Cooper Project
SOUTHERN COOPER PROJECT ¾ PELA 96 • Progressing to Grant For personal use only ¾ Strike Oil (Operator) 66 ⅔ % Energy World Corporation 33 ⅓ % ¾ Rights to : • ~1,800 sq kms of Coal Measures ‐ Coal Seam Gas (CSG) (approx. 450,000 acres) • Prospective Resource 8–20 Tcf in • Shallowest Permian coals, co
Slide 17: Projects and Business Portfolio 2008/09
PROJECTS AND BUSINESS PORTFOLIO 2008/09 For personal use only Gulf Coast PRODUCTION Rayburn alone risked value Mesquite > $1/per share Substantial (STX share price Non‐ additional 27 cents at 28/8/08) Conventional value potential Conventional Petroleum and Petroleum Energy DEVELOPMENT Rayburn (Gulf
Slide 18: Corporate Objective
CORPORATE OBJECTIVE To add value by market recognition of: For personal use only ¾ A$50‐55 million plus per annum revenue 2008/09 ¾ 1,000 Bcf gross potential in the Gulf Coast (~ 30% net to Strike Oil) ¾ Substantial growth opportunities in Australia and US Share Price over Trade Volume Shares on iss
Slide 19: Summary
SUMMARY For personal use only Strike Oil has:‐ ¾ ONGOING CASH FLOW GROWTH TO FUND EXPANSION ¾ MATURING PROJECT PORTFOLIO TO FUEL GROWTH ¾ EXPERIENCED TEAM TO MANAGE GROWTH AND CAPTURE VALUE ¾ SUBSTANTIAL SHARE PRICE LEVERAGE ALL THE INGREDIENTS FOR ANOTHER SUCCESSFUL YEAR
Slide 20: For personal use only
For personal use only ASX Code: STX www.strikeoil.com.au
Slide 21: 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