Strike Energy Limited · ASX:STX
Strike Energy — Investor Presentation (May 2012)
26 slides from Strike Energy's investor presentation, May 3, 2012
Slide 1: Investor Presentation ASX announcement cover letter
Strike Energy Limited ABN 59 078 012 745 3 May 2012 For personal use only The Company Announcement Officer OUR STRENGTHS ASX Ltd via electronic lodgement • Quality Assets • Experienced Team INVESTOR PRESENTATION • Major Growth Potential Strike Energy Limited releases the attached investor presentati
Slide 2: Substantial Leverage to the Unconventional Oil & Gas Sector
For personal use only SUBSTANTIAL LEVERAGE TO THE UNCONVENTIONAL OIL & GAS SECTOR INVESTOR PRESENTATION MAY 2012
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only Major exposure to the ‘booming’ unconventional oil & gas sector – SECTOR EXPOSURE a ‘game changer’ in global energy supply Large positions within highly prospective unconventional oil and QUALITY ASSETS gas plays – Cooper Basin (Australia) and Eagle Ford S
Slide 4: Company Snapshot
COMPANY SNAPSHOT For personal use only COMPANY SNAPSHOT (3 May 2012) COMPANY STRATEGY Corporate office Sydney, Australia US operations base Houston, USA HIGH IMPACT David Wrench – Managing Director Early stage exploration, which if successful, Ben Thomas – President, USA will result in rapid commerc
Slide 5: Strike's Key Assets
STRIKE’S KEY ASSETS For personal use only THE COOPER BASIN EAGLE FORD SHALE MARSDEN 1 DAVENPORT 1 16,000 km2 / 4 million acres (net) of permits and applications 34,400 (gross) / 9,460 (net) acres of Eagle Ford Shale with unconventional and conventional potential focused on the attractive gas-condens
Slide 6: The Cooper Basin
For personal use only THE COOPER BASIN A LARGE POSITION WITHIN AUSTRALIA’S LEADING UNCONVENTIONAL PLAY Page 4
Slide 7: Australia's Most Prospective Unconventional Play
AUSTRALIA’S MOST PROSPECTIVE UNCONVENTIONAL PLAY For personal use only THE COOPER BASIN IS A PROVEN HYDROCARBON SYSTEM WITH 50 YEARS OF PRODUCTION Australian east coast gas demand forecast to triple by 2016, primarily from LNG projects under construction Gas prices forecast to reach A$6 - 9/GJ in th
Slide 8: A Large Cooper Basin Position
A LARGE COOPER BASIN POSITION For personal use only STRIKE HAS A LARGE COOPER BASIN EXPOSURE WITH EXCELLENT UNCONVENTIONAL POTENTIAL 16,000 km2 / 4 million acres (net) of permits & applications with conventional and unconventional potential Extensive coal & shale formations with liquids potential in
Slide 9: Southern Cooper Basin Liquids Fairway
SOUTHERN COOPER BASIN LIQUIDS FAIRWAY For personal use only THE SOUTHERN COOPER BASIN IS EMERGING AS THE LIQUIDS ‘SWEET SPOT’ Strike’s North American experience is that liquids-rich gas plays have clearly superior economics Heightened drilling activity in the Southern Cooper Basin confirms unconvent
Slide 10: Marsden Confirms Unconventional Resource Potential
MARSDEN 1 CONFIRMS UNCONVENTIONAL RESOURCE POTENTIAL For personal use only MARSDEN 1 ENCOUNTERED OVER 800 METRES OF PERMIAN SECTION WITHIN PEL 95 (Strike 50%) Confirmed thick sections of the target Toolachee, Roseneath, Epsilon & Murteree (‘REM’) and Patchawarra Elevated gas readings and the presenc
Slide 11: Substantial Value Upside Potential
SUBSTANTIAL VALUE UPSIDE POTENTIAL For personal use only STRIKE HAS CONSIDERABLE LEVERAGE TO COOPER BASIN UNCONVENTIONAL SUCCESS A large acreage position in the Southern Cooper Basin Marsden 1 preliminary results confirm the significant unconventional gas and liquids resource potential of the Southe
Slide 12: The Eagle Ford Shale
For personal use only THE EAGLE FORD SHALE LEVERAGE TO THE USA’S PREMIER UNCONVENTIONAL LIQUIDS PLAY Page 10
Slide 13: The USA's Premier Unconventional Liquids Play
THE USA’S PREMIER UNCONVENTIONAL LIQUIDS PLAY For personal use only THE EAGLE FORD SHALE IS EMERGING AS ONE OF THE WORLD’S BEST SHALE REGIONS Superior economics due to productivity and high liquids content (typically > 90% of revenues) Increasing drilling activity as operators reallocate resources t
Slide 14: A Sizeable Lease Position – 9,460 Net Acres
A SIZEABLE LEASE POSITION – 9,460 NET ACRES For personal use only 34,400 GROSS / 9,460 NET ACRES OF EAGLE FORD SHALE LEASES IN LAVACA & FAYETTE COUNTIES Focused upon the gas-condensate fairway which has been shown to have the best economics Drilling activity by other operators is demonstrating exten
Slide 15: Near Term Value Upside Potential
NEAR TERM VALUE UPSIDE POTENTIAL For personal use only STRIKE’S FIRST HORIZONTAL PRODUCTION WELL IS EXPECTED TO SPUD MID-2012 Technical evaluation shows that the Eagle Ford Shale gas-condensate fairway extends into Strike’s acreage The Lower Austin Chalk is present immediately above the Eagle Ford S
Slide 16: Other Assets
For personal use only OTHER ASSETS OPTION VALUE + CASHFLOW FROM CONVENTIONAL PRODUCTION Page 14
Slide 17: Conventional Production + Option Value
CONVENTIONAL PRODUCTION + OPTION VALUE For personal use only STRIKE IS FOCUSED UPON ITS UNCONVENTIONAL ASSETS, BUT ITS OTHER ASSETS ADD VALUE STRIKE ASSET PRODUCTION OPTION VALUE Multiple conventional prospects CARNARVON BASIN, Western Australia --- WA 460P partly sitting over the 13.5 Tcf Five onsh
Slide 18: Looking Forward
For personal use only LOOKING FORWARD PROSPECTIVE UNCONVENTIONAL ASSETS + ACTIVE DRILLING = VALUE UPSIDE Page 16
Slide 19: 2012 – A Year of High Activity
2012 – A YEAR OF HIGH ACTIVITY For personal use only IMPORTANT ACTIVITY AT KEY UNCONVENTIONAL ASSETS + OPTION VALUE FROM OTHER ASSETS Current or near-term drilling in the Cooper Basin and Eagle Ford Shale Technical and commercial analysis underway to develop follow-on programs Mar Apr May Jun Jul Au
Slide 20: Strong Financial Position
STRONG FINANCIAL POSITION For personal use only A STRONG FINANCIAL POSITION FROM WHICH TO ADVANCE KEY UNCONVENTIONAL ASSETS Encouraging share price performance – up 100% this year – but substantial upside remains $20 million placement heavily over-subscribed Leading institutional investors now share
Slide 21: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only Major exposure to the ‘booming’ unconventional oil & gas sector – SECTOR EXPOSURE a ‘game changer’ in global energy supply Large positions within highly prospective unconventional oil and QUALITY ASSETS gas plays – Cooper Basin (Australia) and Eagle Ford S
Slide 22: Additional Information
For personal use only ADDITIONAL INFORMATION Page 20
Slide 23: Cooper Basin – Marsden Preliminary Results
COOPER BASIN – MARSDEN 1 PRELIMINARY RESULTS For personal use only The Marsden 1 unconventional coal and shale evaluation well in PEL 95 (Strike 50%, Beach Energy 50%) spudded on 22 February, and following a three week suspension due to heavy rains, reached a total depth of 2,625 metres on 10 April.
Slide 24: Cooper Basin – Davenport Well Location
COOPER BASIN – DAVENPORT 1 WELL LOCATION For personal use only Strike’s Davenport 1 unconventional evaluation well spudded on 25 April and is testing the Permian coals and shales within the Milpera Trough in PEL 95 (Strike 35%). The well will be drilled to a total depth of 2,192 metres and logged, b
Slide 25: Eagle Ford Shale – Activity by Other Operators
EAGLE FORD SHALE – ACTIVITY BY OTHER OPERATORS For personal use only Activity by independent operators is ramping-up as the Eagle Ford Shale trend is shown to extend into northern Lavaca and southern Fayette Counties. At least 15 wells are expected to complete in Fayette County during 2012, compared
Slide 26: 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