Strike Energy Limited · ASX:STX
Strike Energy — Investor Presentation (February 2014)
17 slides from Strike Energy's investor presentation, Feb 20, 2014
Slide 1: ASX Announcement: Southern Cooper Basin Gas Project Investor Presentation
ASX Announcement 20 February 2014 For personal use only The Company Announcement Officer ASX Ltd via electronic lodgement SOUTHERN COOPER BASIN GAS PROJECT INVESTOR PRESENTATION In conjunction with yesterday’s resource upgrade announcement, Strike Energy Limited (“Strike” ASX:STX) is pleased to prov
Slide 2: Strike Energy Limited Southern Cooper Basin Gas Project Investor Presentation
For personal use only STRIKE ENERGY LIMITED SOUTHERN COOPER BASIN GAS PROJECT Investor Presentation February 2014
Slide 3: The opportunity: The Eastern Australian Gas Market
Southern Cooper Basin Gas Project: The opportunity The Eastern Australian Gas Market For personal use only "Gas prices in Queensland are already reflecting the transition to export parity or LNG netback pricing. Supplies from Moomba are similarly reflecting export parity pricing.” AGL IPART submissi
Slide 4: Executive summary
Southern Cooper Basin Gas Project: Executive summary For personal use only Strike’s appraisal drilling confirms presence of world scale gas resource - 4.5 Tcf prospective resource (PEL 96 net to Strike) directly under Moomba to Adelaide Gas Pipeline (MAPS) Strike’s ‘gas saturated coals’ - high resou
Slide 5: Favourable location
Southern Cooper Basin Gas Project: Favourable location Strike’s PEL 94, 95 and 96 permits are ideally located with direct access to infrastructure connecting to Eastern Australian gas markets. For personal use only Moomba Marsden 1 Permit STX working Operator interest 96 66.67% Strike PEL 95 Davenpo
Slide 6: Resource upgrade
Southern Cooper Basin Gas Project: Resource upgrade Following appraisal drilling, the mean estimate of the prospective resource within Strike’s PEL 96 pemit increased to 4.5 Tcf (Phase One For personal use only Area 1.25 Tcf). This resource is located directly beneath the Moomba to Adelaide Pipeline
Slide 7: Target interval at optimal depth
Southern Cooper Basin Gas Project: Target interval at optimal depth Strike’s appraisal program has confirmed the presence of thick, dry/gas saturated coals. The target interval at Le Chiffre 1 and Klebb 1 For personal use only is in the optimal gas generation window at a relatively shallow depth. Th
Slide 8: Well drilling and completion costs
Southern Cooper Basin Gas Project: Well drilling and completion costs Strike has completed an independent review of production well drilling and completion costs based on actual results achieved during For personal use only the recent drilling program and firm third party tender quotes for the upcom
Slide 9: Unconventional gas play economics
Southern Cooper Basin Gas Project: Unconventional gas play economics For personal use only Strike’s Southern Cooper Basin Gas Project will require modest recoveries per well to achieve break-even Strike Energy Limited - Investor Presentation February 2014 8
Slide 10: Unconventional gas play economics: break-even recovery vs well capex
Southern Cooper Basin Gas Project: Unconventional gas play economics For personal use only Produced gas Break-even Recovery vs Well Capex volume per well Bcf Break-even gas volume well capex 3.5 10 20 in $’ millions Well capex is the primary driver of play economics . Low well costs drive favourable
Slide 11: Unconventional gas play economics
Southern Cooper Basin Gas Project: Unconventional gas play economics Well capex and sales gas price are the key determinants of the required break-even sales gas volume per well. Where gas is extracted from For personal use only water saturated zones (e.g. Queensland and NSW CSG) additional capital
Slide 12: PEL Phase One Area economics
Southern Cooper Basin Gas Project: PEL 96 Phase One Area economics Based on a $6/GJ price for sales gas delivered into MAPS pipeline and drilling and completion costs of $3.5 million per well Strike For personal use only needs to recover 1.5 - 2.0 Bcf of raw gas to break-even. CO2 removal 1.5 - 2.0
Slide 13: Rapid commercialisation program
Southern Cooper Basin Gas Project: Rapid commercialisation program To date, unconventional appraisal in the Cooper basin has been characterised by high costs, slow progress and long-dated commerciality. For personal use only The drivers of these outcomes have included target zone depths, pressures,
Slide 14: PEL Phase One Area path to market
Southern Cooper Basin Gas Project: PEL 96 Phase One Area path to market The production testing and development timing for the PEL 96 Phase One Area positions Strike as the ‘frontrunner’ to meet the forecast For personal use only east coast gas shortage. The 1.2 Tcf prospective resource in the PEL 96
Slide 15: Potential to deliver enormous value
Southern Cooper Basin Gas Project: Potential to deliver enormous value Subject to early reserves maturation in the PEL 96 Phase One Area, Strike will pursue a monetisation path to fully capture the value of For personal use only the large, contiguous and favourably located multi-Tcf gas resource pre
Slide 16: Opportunity Summary
Opportunity Summary For personal use only World-scale resource supply constrained market Appraisal program successfully completed Production testing next step in project development Potentially compelling economics Rapid commercialisation program Established path to market Successful commercialisati
Slide 17: Important Notice
Important Notice This presentation does not constitute an offer, invitation or Such statements relate to future events and expectations and as such For personal use only recommendation to subscribe for, or purchase any security and involve known and unknown risk and uncertainties, many of which are
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