Strike Energy Limited · ASX:STX
Strike Energy — Good Oil Conference 2011
30 slides from Strike Energy's conference presentation, Sep 6, 2011
Slide 1: Good Oil Conference Presentation
Strike Energy Limited ABN 59 078 012 745 6 September 2011 For personal use only The Company Announcement Officer OUR STRENGTHS Australian Securities Exchange Ltd via electronic lodgement • High margin producer • Multiple large scale growth options GOOD OIL CONFERENCE PRESENTATION • Experienced team
Slide 2: Good Oil Conference 6 September 2011
For personal use only GOOD OIL CONFERENCE 6 SEPTEMBER 2011
Slide 3: Strike Energy: Introduction
STRIKE ENERGY: INTRODUCTION For personal use only Strike Energy Limited is an independent Australian Stock Exchange listed energy exploration and production company High-impact conventional and unconventional hydrocarbon projects, TARGETS including shale and coal seam gas Extensive experience, relat
Slide 4: Strike Energy: Company Snapshot
STRIKE ENERGY: COMPANY SNAPSHOT For personal use only COMPANY SNAPSHOT* 1. EAGLE FORD Shale gas / liquids Head office Perth, Australia 2. WILCOX TEXAS Listing ASX (ticker STX) Conventional gas / liquids Shareholders > 3,000 1 3 2 3. WILCOX LOUISIANA Shares 440,817,026 UNITED STATES Conventional gas
Slide 5: Strike Energy: Company Highlights
STRIKE ENERGY: COMPANY HIGHLIGHTS For personal use only Strike Energy has strong fundamentals from which to deliver shareholder value MANAGEMENT Experienced, motivated, committed management STRATEGY Identify, prove-up and develop high-impact assets QUALITY High quality growth assets including Eagle
Slide 6: High-Impact Assets: The Eagle Ford Shale
For personal use only HIGH-IMPACT ASSETS: THE EAGLE FORD SHALE 5
Slide 7: The Eagle Ford: World Class Unconventional Play
THE EAGLE FORD: WORLD CLASS UNCONVENTIONAL PLAY For personal use only The Eagle Ford has emerged as the USA’s most exciting unconventional play VERY LARGE PRODUCTIVE SHALE RESOURCE LIQUIDS RICH FAIRWAYS / ATTRACTIVE ECONOMICS INFRASTRUCTURE / IMMEDIATE ACCESS TO MARKETS AVAILABILITY OF SERVICES 6
Slide 8: The Eagle Ford: Highly Sought After Acreage
THE EAGLE FORD: HIGHLY SOUGHT AFTER ACREAGE For personal use only There are very high levels of interest in the Eagle Ford and asset prices are rising EAGLE FORD – RECENT TRANSACTIONS EAGLE FORD – ACREAGE VALUE OF M&A TRANSACTIONS $15b $3.5b US$’000 / acre $2.2b $1.5b $1.2b Source: Merrill Lynch 7
Slide 9: The Eagle Ford: Strike's Position
THE EAGLE FORD: STRIKE’S POSITION For personal use only Strike’s Eagle Landing Joint Venture (27.5% WI) has leased 22,764 acres (6,260 acres net) of Eagle Ford acreage, adjacent to proven productive areas FLATONIA E 1H/ Southern Bay IP: 1,204 bopd + 420 mcfd 30 day: 391 boepd FLATONIA E 2H/ Southern
Slide 10: The Eagle Ford: Proven Success Factors
THE EAGLE FORD: PROVEN SUCCESS FACTORS For personal use only Strike is well down the path of proving up the value of our Eagle Ford investment ACQUIRE ACREAGE AT ATTRACTIVE PRICES TARGET OIL AND WET GAS FAIRWAYS CLOSE TO EXPORT INFRASTRUCTURE AND MARKETS DEMONSTRATE EXTENSION OF PRODUCTIVE TREND NEX
Slide 11: The Eagle Ford: Valuation Metrics
THE EAGLE FORD: VALUATION METRICS For personal use only The implied value of Strike’s acreage is US$30 – 60 million EAGLE FORD SHALE – INDICATIVE TRADING & TRANSACTION MULTIPLES $70,000 Aurora Implied acreage value (US$/acre) $25,000 Marathon / Hilcorp $20,000 KNOC / Anardako Mitsui / SM Energy $15,
Slide 12: High-Impact Assets: The Southern Cooper Basin
For personal use only HIGH-IMPACT ASSETS: THE SOUTHERN COOPER BASIN 11
Slide 13: Cooper Basin: Shale Potential
COOPER BASIN: SHALE POTENTIAL For personal use only The Cooper Basin is well known for its conventional oil and gas production. But now there is substantial interest in its unconventional shale gas / liquids potential VERY LARGE 342 Tcf estimated gas-in-place (Morgan Stanley) KNOWN Extensive, thick
Slide 14: Cooper Basin: Increasing International Interest
COOPER BASIN: INCREASING INTERNATIONAL INTEREST For personal use only International players are showing increasing interest in Australian shale. Recent farmin transactions have ascribed high values to unconventional acreage 1. Canning Basin 4. Beetaloo Basin Farmin – 70% Farmin – 62.5% Cost – up to
Slide 15: Cooper Basin: Strike's Leverage
COOPER BASIN: STRIKE’S LEVERAGE For personal use only Strike holds 17,600 km2 (12,275 km2 net) of exploration permits and applications. Our acreage has 7 Tcf of unconventional gas / liquids potential EXTENSIVE, RELATIVELY SHALLOW SHALES AND COALS CONVENTIONAL + SHALE + CSG POTENTIAL LIQUIDS RICH POT
Slide 16: Cooper Basin: Proving-Up the Value
COOPER BASIN: PROVING-UP THE VALUE For personal use only Results of the Cooper Basin’s unconventional wells are very encouraging. The wells demonstrate the Cooper’s (and Strike’s) unconventional potential Well Operator Type Completion Result Encounter #1 Beach Energy Vertical exploration / fraccing
Slide 17: High-Impact Assets: The Wilcox
For personal use only HIGH-IMPACT ASSETS: THE WILCOX 16
Slide 18: Wilcox Louisiana: Large Conventional Targets
WILCOX LOUISIANA: LARGE CONVENTIONAL TARGETS For personal use only Strike’s St Landry Canyon Project (10% WI) on the Wilcox slope has multiple high- impact targets that could substantially increase our reserves and production 37,000 ACRES MULTIPLE HIGH-IMPACT PROSPECTS EXTENSIVE 3D SEISMIC ONSHORE F
Slide 19: Wilcox Texas: Shallow Conventional Targets
WILCOX TEXAS: SHALLOW CONVENTIONAL TARGETS For personal use only Strike’s Eaglewood Joint Venture (40% WI) has a good success rate and offers multiple lower risk follow-on targets on the Wilcox Shelf 12,000 ACRES WITH MULTIPLE 10 – 20 BCFE TARGETS EXTENSIVE INFRASTRUCTURE AND SERVICES Wilcox GARDNER
Slide 20: Other Assets: Australia
For personal use only OTHER ASSETS: AUSTRALIA 19
Slide 21: Other Assets: Carnarvon Basin
OTHER ASSETS: CARNARVON BASIN For personal use only Strike holds permits within the shallow water Carnarvon Basin CONVENTIONAL OIL AND HIGH-MARGIN WA GAS UNDEVELOPED RIVOLI GAS FIELD – 16 BCF BANIYAS GAS / CONDENSATE PROSPECT VALUE REALIZATION OPTIONS BEING ASSESSED 20
Slide 22: Other Assets: Kingston Project
OTHER ASSETS: KINGSTON PROJECT For personal use only The Kingston Project (100% WI) has a 578 million tonne (JORC) lignite resource that is suitable as a ‘syngas’ feedstock for the manufacture of urea or methanol EXTENSIVE EXPLORATION BY WMC AND OTHERS NATURAL GAS RESOURCE EQUIVALENT 3.4 – 4.9 TCF*
Slide 23: Strike Energy: Generating Value
For personal use only STRIKE ENERGY: GENERATING VALUE 22
Slide 24: Generating Value: Strike's Asset Strategy
GENERATING VALUE: STRIKE’S ASSET STRATEGY For personal use only NOW SHORT-TERM MEDIUM-TERM Exploration well Value maximisation EAGLE FORD Leasing opportunities – develop Production testing & hold, farmout, sale? Value maximisation Determination of Evaluation wells opportunities – develop COOPER BASI
Slide 25: Generating Value: Strike's Asset Potential
GENERATING VALUE: STRIKE’S ASSET POTENTIAL For personal use only ILLUSTRATIVE SUM OF PARTS VALUATION $140 $120 COMPANY VALUE ($m) $100 $80 CASH $60 Market Cap. COOPER BASIN ASSET Enterprise Val. STRATEGY $40 WILCOX SLOPE WILCOX SHELF $20 EAGLE FORD $0 NOW SUM OF PARTS SUM OF PARTS LOW CASE HIGH CASE
Slide 26: Generating Value: Capital Management
GENERATING VALUE: CAPITAL MANAGEMENT For personal use only Strike has successfully completed a A$16.8 million capital raising. We are well placed to advance our exploration plans SUPPORTIVE SHAREHOLDER BASE / NEW INSTITUTIONAL SHAREHOLDER A$13 MILLION CASH 2011 EXPLORATION PROGRAM FULLY FUNDED RISK-
Slide 27: Generating Value: Summary
GENERATING VALUE: SUMMARY For personal use only Strike Energy has strong fundamentals from which to deliver shareholder value MANAGEMENT Experienced, motivated, committed management STRATEGY Identify, prove-up and develop high-impact assets QUALITY High quality growth assets including Eagle Ford Sha
Slide 28: 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
Slide 29: JORC Compliance Statement
JORC COMPLIANCE STATEMENT For personal use only KINGSTON – STX: 100% AND OPERATOR The Kingston lignite resources are located at Kingston South Australia and have been classified and reported in accordance with the JORC Code (2004). The Kingston lignite deposit contains a total of 578 million tonnes
Slide 30: www.strikeenergy.com.au
For personal use only www.strikeenergy.com.au 29