Strike Energy Limited · ASX:STX
Strike Energy — 5th Annual Australian Domestic Gas Outlook Conference 2017
19 slides from Strike Energy's conference presentation, Mar 15, 2017
Slide 1: ASX Announcement: Australian Domestic Gas Outlook 2017
ASX Announcement 15 March 2017 For personal use only The Company Announcement Officer ASX Ltd via electronic lodgement Australian Domestic Gas Outlook 2017 Conference Presentation – March 2017 Please find attached a presentation to be given today by Mr David Baker (Managing Director) at the Australi
Slide 2: Exploring the supply options for a domestic gas market still 'short'
STRIKE ENERGY LIMITED Exploring the supply options for a domestic For personal use only gas market still ‘short’ March 2017
Slide 3: Introduction
Introduction For personal use only Eastern Australian gas prices Innovative funding Pre-requisites for successful development of low cost supply projects for the domestic market Strike Energy Limited – 5th Annual Australian Domestic Gas Outlook Conference 2017 2
Slide 4: How are Eastern Australian gas prices responding to market tightness?
For personal use only How are Eastern Australian gas prices responding to market tightness?
Slide 5: Wholesale domestic gas pricing
Wholesale domestic gas pricing • Major domestic gas users have historically relied upon long term bilateral contracts predominantly from Gippsland and Cooper Basins. For personal use only • Since 2013 the availability of forward wholesale gas for 5-10 year supply commitments has progressively tighte
Slide 6: Developing an innovative mix of funding sources for domestic gas customers
For personal use only Developing an innovative mix of funding sources for domestic gas customers
Slide 7: Funding options for Strike in a curiously constrained capital market
Funding options for Strike in a curiously constrained capital market Typical exploration Increase in exploration funding sources funding innovation For personal use only Equity capital $13 Million + Gas off take $17 Million Equity capital + Additional + funding options R & D funding $25 Million Cash
Slide 8: Critical pre-requisites for successful development of low cost supply projects
For personal use only Critical pre-requisites for successful development of low cost supply projects for the domestic market
Slide 9: Location, location, location ... and competitive economics
Location, location, location ... and competitive economics ... For personal use only Coal seam gas fundamentals (in the current market) Positive Economies Location Low Supply Cost Regulatory Industry Support of Scale Environment Access to market Supply gap Alignment of security (150-250 PJ/a) Proxim
Slide 10: Scale and Location
Scale and Location Prospective 2C Resource + Contingent Resource Moomba For personal use only PEL 94 2,702 Bcf^ PEL 95 3,817 Bcf^ Marsden 1 PEL 96 4,492 Bcf* Total 11,011 Bcf PEL 94 PEL 95 PEL 96 Phase Davenport 1 STX 50% Mount Isa One Area 1,123 Bcf* 104 Bcf* STX 35% Le Chiffre 1 Gladstone Klebb pr
Slide 11: Low Gas Supply Cost: Key Parameters
Low Gas Supply Cost: Key Parameters The geological and reservoir characteristics in each gas field define the overall quantity and quality and ultimate recovery of the gas resource. Geology varies between gas basins with implications for exploration activity and production outcomes. The pilot stage
Slide 12: SCBGP: Primary risks to low supply cost: Permeability
SCBGP: Primary risks to low supply cost: Permeability Typically CSG reservoirs are commercialised where they are shallower than 1,000m due to the stress induced by the overburden and resulting closure of cleats and natural fractures. In the Queensland fields, typical CSG reservoirs are from 300m to
Slide 13: SCBGP: Primary risks: Thermal Maturity & Resource Concentration
SCBGP: Primary risks to low supply cost: Thermal Maturity & Resource Concentration Typically increases with burial history (maximum depth). Southern Patchawarra Cooper coals have a Vitrinite reflectance of 0.6%-0.8%, which is within the gas generation window for inertinite macerals. Inertinite is a
Slide 14: SCBGP: Reservoir Fundamentals
SCBGP: Reservoir Fundamentals The southern Cooper coals are thick, competent, consistent and continuous over tens of kilometres. The wells are cased and fracture stimulated so that de-watering is from the target seams only and not from interbedded sands, as can be the case in the open-hole For perso
Slide 15: SCBGP: Status of pilot appraisal
SCBGP: Status of pilot appraisal The remaining key objective for the Klebb pilot is to confirm the range of gas content of the Vu Coal at Klebb, which represents approximately 50% of the target Patchawarra coals. Flow testing has positively refined our understanding of the key play drivers. Further
Slide 16: SCBGP: Transformational potential of low supply cost outcome
SCBGP: Transformational potential of low supply cost outcome Gas flows from the Klebb pilot are expected to confirm the remaining reservoir parameters that determine commercial potential. The enormous scale of the prospective resource will drive SCBGP down the cost curve. For personal use only Resou
Slide 17: Initial customer base in place: Clear pathway to gas production
Initial customer base in place: Clear pathway to gas production • 1.5 million acres, ideally located southern Cooper coals For personal use only • 11 Tcf prospective resource • $90 million expended on exploration, appraisal and pilot production Funding sources Substantial industry support Mount Isa
Slide 18: Important Notice
Important Notice This presentation does not constitute an offer, invitation or recommendation to subscribe for, Contingent Resource Estimate or purchase any security and neither this presentation nor anything contained in it shall form For personal use only the basis of any contract or commitment. D
Slide 19: Important Notice: continued
Important Notice: continued Competent Persons Statement For personal use only The information in this presentation that relates to the PEL 96, PEL 95 and PEL 94 contingent resources estimate has been taken from the independent reports as prepared by DeGolyer and MacNaughton, a leading independent in
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