Strike Energy Limited · ASX:STX
Strike Energy — DUG Australia Conference 2015
18 slides from Strike Energy's conference presentation, Jul 29, 2015
Slide 1: DUG Australia Conference Presentation – July 2015
ASX Announcement 29 July 2015 For personal use only The Company Announcement Officer ASX Ltd via electronic lodgement DUG AUSTRALIA CONFERENCE PRESENTATION – JULY 2015 Please find attached a presentation to be given by Mr David Wrench at the DUG Australia conference to be held at the Royal Internati
Slide 2: Strike Energy Limited – DUG Conference July 2015
STRIKE ENERGY LIMITED For personal use only DUG CONFERENCE July 2015 Strike Energy Limited - DUG Presentation, July 2015 1
Slide 3: DUG Conference: Strike Energy Limited
DUG Conference: Strike Energy Limited For personal use only Eastern Australian gas supply - are there new ‘sweet spots’ out there? Strike’s Southern Cooper Basin Gas Project - an emerging ‘sweet spot’ Strike Energy Limited - DUG Presentation, July 2015 2
Slide 4: Eastern Australian Gas Supply: Are there new 'sweet spots' out there?
Eastern Australian Gas Supply: Are there new ‘sweet spots’ out there? “An unconventional resource ’sweet spot’ is that part of the resource that has the For personal use only lowest unit cost economics and maximum value.” GAS GAS SUPPLY COST VALUE RESOURCE MARKET CREATION Core Qld CSG elsewhere ? St
Slide 5: Gas Resource: Eastern Australian hydrocarbon basins
Gas Resource: Eastern Australian hydrocarbon basins Significant unconventional gas resources exist in the Cooper Basin and Queensland coal fields. For personal use only Mount Isa Bowen and Surat Basins Gladstone Cooper-Eromanga Basin Moomba Brisbane Gunnedah Basin Sydney Adelaide Melbourne Gippsland
Slide 6: Eastern Australian Gas Market: 20-year total demand
Eastern Australian Gas Market: 20-year total demand Over the 20-year period from 2020 to 2040, 40 Tcf of gas will be required to meet demand. Export LNG projects will create 75% of this demand. For personal use only Domestic demand LNG Export demand (1) 10,000 PJ 30,000 PJ (1) Current LNG market for
Slide 7: Supply cost: Cost curve
Supply cost: Cost curve Strike’s analysis highlights the steepness of the East Australian gas supply cost curve. The discovery and development of new large scale lower cost gas resources could substantially lower input costs for gas users by For personal use only substituting higher cost reserves. Q
Slide 8: Supply cost: Liquefaction business
Supply cost: Liquefaction business LNG liquefaction projects are merchant gas processing businesses. These businesses must source the lowest cost gas supply from the market, be that ‘equity’ or third party gas. For personal use only The cost of gas supply is the one area of the business value chain
Slide 9: Supply cost: Focus moving to cost of supply
Supply cost: Focus moving to cost of supply Dramatic changes in the Eastern Australia gas demand profile have been driven by construction of six LNG trains at Gladstone. These trains will account for 30 Tcf of the 40 Tcf demand profile over the next twenty years. For personal use only During the ram
Slide 10: Eastern Australian Gas Supply: Summary
Eastern Australian Gas Supply: Summary For personal use only Gas demand ~40 Tcf over twenty years; LNG the dominant gas buyer LNG merchant business Operating cash flows highly leveraged to gas supply cost Cost curve Eastern States gas market cost curve is very steep Addressable market 10 - 20 Tcf ad
Slide 11: Gas resource: Strike's Southern Cooper Basin Gas Project
Gas resource: Strike’s Southern Cooper Basin Gas Project 2C Moomba Prospective Contingent For personal use only Resource Resource* PEL 96 4,492 Bcf* Marsden 1 PEL 96 Phase 1,123Bcf* 104 Bcf One Area PEL 94 PEL 95 Davenport 1 STX 35% STX 50% Mount Isa Le Chiffre 1 Gladstone Klebb production testing a
Slide 12: Unit Cost of Supply: Economics of Strike's Southern Cooper Coals
Unit Cost of Supply: Economics of Strike’s Southern Cooper Coals Strike’s demonstrated cost structure will drive competitive unit production costs for wells that recover greater than 3PJ. For personal use only Production type curve - long stable phase PEL 96 well full cycle costs (undiscounted) (1)
Slide 13: Unit cost of supply: Cost curve
Unit cost of supply: Cost curve Strike’s Southern Cooper Basin Gas Project has the potential to be a low cost gas producer. For personal use only 1 Strike Southern Cooper PEL 96 Estimated unit cost of supply $/GJ Eastern Australian demand (PJ) 10,000 20,000 30,000 40,000 50,000 1 New STX target supp
Slide 14: Value Creation: Klebb – flow test results
Value Creation: Klebb 1 – flow test results The Klebb 1 single stage flow test is a small scale test of potential flow rates achievable from a commercial development well. For personal use only Development Well Klebb 1 Flow Test Target commercial gas Three completion zones Single stage Vu Upper flow
Slide 15: Value Creation: Future cash flow potential
Value Creation: Future cash flow potential Strike is targeting a low unit cost of supply that will deliver strong operating cash flows in the stable production phase. Future value will be driven by per well operating cash flows and the size of the resource in Strike’s permit areas that could ultimat
Slide 16: Strike's Southern Cooper Basin Gas Project: An emerging 'sweet spot'
Strikes Southern Cooper Basin Gas Project: An emerging ‘sweet spot’ For personal use only GAS GAS UNIT COST VALUE RESOURCE MARKET OF SUPPLY CREATION Cost of supply defines Full life cycle Operating PEL 96 prospective available market well cost / EUR cash flow resource 4.5 Tcf (net STX) 10 - 20 Tcf a
Slide 17: Important Notice
Important Notice This presentation does not constitute an offer, invitation or recommendation to subscribe Contingent Resource Estimate For personal use only for, or purchase any security and neither this presentation nor anything contained in it shall form the basis of any contract or commitment. D
Slide 18: Important Notice – Competent Persons Statement
Important Notice Competent Persons Statement The information in this presentation that relates to the PEL 96 contingent resources estimate has For personal use only been taken from the independent reports as prepared by DeGolyer and MacNaughton, a leading independent international petroleum industry