Strike Energy Limited · ASX:STX
Strike Energy — Strike Oil — RIU Good Oil Conference 2009
27 slides from Strike Energy's conference presentation, Sep 1, 2009
Slide 1: Good Oil Conference Presentation – ASX cover letter
Strike Oil Limited ABN 59 078 012 745 1 September 2009 For personal use only The Company Announcement Officer Australian Securities Exchange Ltd via electronic lodgement GOOD OIL CONFERENCE PRESENTATION OUR STRENGTHS Please find attached a presentation to be made by Simon Ashton at the Good Oil Pr
Slide 2: A New Growth Phase
For personal use only A NEW GROWTH PHASE September 2009 Simon Ashton, Managing Director RIU Good Oil Conference - Fremantle 1 – 2 September 2009
Slide 3: 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 4: Strategic focus
Strategic focus THE COMPANY For personal use only A successful oil and gas explorer and producer with operations focussed on the most productive basins in the USA and Australia
Slide 5: Strategic focus: asset strategy and action
Strategic focus THE COMPANY For personal use only Asset Strategy Action High margin production Growth through exploration/development Drilling starts Nov 2009 Large potential CSG resource Prove up Reserves ASAP Drilling starts Nov 2009 Large coal gasification resource Commercialise energy opti
Slide 6: Capital Position
Capital Position THE COMPANY For personal use only As at 31 August 2009 Shares on issue (ASX: STX) million 328.6 Options on issue million 11.9 Current share price A$ 0.27 Market capitalisation A$ million 88.6 Cash and listed investments A$ million 15.7 Debt (4 year repayment schedule) US$ million 5.
Slide 7: Value proposition
Value proposition THE COMPANY For personal use only CASH AND USA PRODUCTION A$ Million Cash and investments 16 Supports STX NPV of USA production (10 – 15% disc.) market 47 - 53 capitalisation Total value (net of debt) 55 - 61 With minimal value for large scale growth options... Asset STX Share COAL
Slide 8: Gulf Coast – a great place to find oil & gas
Gulf Coast – a great place to find oil & gas USA BUSINESS UNIT For personal use only Vast petroleum infrastructure Ready access to market (discovery to sales – 2 months!) US gas pricing premium
Slide 9: Major onshore Gulf Coast discoveries
Major onshore Gulf Coast discoveries US BUSINESS UNIT For personal use only - PRODUCTION TWO PRODUCING FIELDS: Rayburn and Mesquite (estimated ultimate recovery: 71 Bcfe) CURRENT RESERVES Primarily Middle Wilcox Total proved: 41.5 Bcfe (June 09): STX share: 9.2 Bcfe PROSPECTIVE RESOURCE Pote
Slide 10: US production drives company performance
US production drives company performance USA BUSINESS UNIT For personal use only Strike Oil Performance (unaudited) Year Ended 30 June 2009 Unit Result YoY Change Gas production Bcf 3.33 196% Oil production bbl 81,836 206% Production revenue A$ million 36.4 128% Total revenue (STX) A$ million
Slide 11: Delivering first class exploration results
Delivering first class exploration results USA BUSINESS UNIT For personal use only - EXPLORATION PARTNER Cypress E&P, successful operator Houston/Austin based Technically strong – track record of success RECORD TO DATE – RAYBURN & MESQUITE Tested targets with 200 Bcf pre-drill potential Re
Slide 12: A pipeline of large scale new energy supply options
A pipeline of large scale new energy supply AUSTRALIAN options For personal use only BUSINESS UNIT CONVENTIONAL NON-CONVENTIONAL OFFSHORE OIL (GAS) COAL SEAM GAS Baniyas: Southern Cooper: STX 40%, Operator STX 66.7%, Operator Oil case potential: CSG prospective in-situ resource 9 - 47 million boe
Slide 13: Major strategically located Coal Seam Gas potential – Southern Cooper
Major strategically located Coal Seam Gas potential AUSTRALIA For personal use only – SOUTHERN COOPER Very large coal resource delineated by seismic and oilfield drilling Gas, oil and synthetic fuels (CSG and UCG) potential Initial focus is CSG Strike Oil is the operator of the project with
Slide 14: Major strategically located Coal Seam Gas potential – Southern Cooper
Major strategically located Coal Seam Gas potential AUSTRALIA For personal use only – SOUTHERN COOPER LARGE SCALE Shallowest extensive Cooper Basin Permian coals Gross 7,000-19,000 PJ in place prospective gas resource (5,000 - 12,000 PJ to Strike’s interest) PIPELINE TO MARKET IN PLACE - LOW UPF
Slide 15: Southern Cooper: extensive thick coals
SOUTHERN COOPER Extensive thick coals For personal use only PROJECT Based on past oil exploration wells and seismic data interpretation 100 km
Slide 16: Key attributes of a CSG project
Key attributes of a CSG project SOUTHERN COOPER For personal use only PROJECT Numerous coal seams up to 18 metres thick. Composite thickness Thick coal seams up to 80 metres Laterally extensive 1,800 sq km (or 450,000 acres) in PEL 96 coal seams Attributes Coal intersections from 1,000 metres to 1,8
Slide 17: Southern Cooper: favourable scoping economics
SOUTHERN COOPER Favourable scoping economics For personal use only PROJECT LOW UPFRONT CAPEX AND POTENTIAL GAS SALES WITHIN 2 YEARS Up to 150 TJ/day capacity available at Epic Energy Moomba to Adelaide pipeline Ready access to domestic Eastern States market: direct sales or gas swaps “Imme
Slide 18: FuturGas: strategic multi-product energy resource
FUTURGAS Strategic multi-product energy resource For personal use only PROJECT Multi product potential: CTL (diesel/naptha), Ammonia (fertiliser), Methanol, Power Large coal resource delineated by extensive drilling Positive combustion and gasification tests complete Excellent access to infr
Slide 19: FuturGas: multi-product options
FUTURGAS Multi-product options For personal use only PROJECT SCOPING STUDIES DEMONSTRATE MANY OPTIONS Lignite Mined Products Annual Production (million tonnes/annum) CTL/Liquid Fuels/Chemicals/Power 3.6 million barrels and 150 MW 3.6 Ammonia/Power 0.58 million tonnes and 123 MW 2.4 Methanol/Power 0.
Slide 20: FuturGas: key attributes – CTL
FUTURGAS Key attributes - CTL For personal use only PROJECT Technology Combustion and gasification of lignite confirmed Utilises established CTL technology Resource 578 Million tonnes JORC compliant lignite resource* Financial Produces 10,000 barrels per day of liquid fuels, 40MW of low emis
Slide 21: Australia – strategic position adjacent producing fields
AUSTRALIA – Strategic position adjacent producing fields For personal use only CARNARVON BASIN Baniyas (STX 40%, operator) Oil and gas prospect on- trend with producing fields Rivoli (STX 44.5%, operator) Potential source of gas for remote power project – Exmouth Region (up to 20 PJ prospective
Slide 22: One of the best undrilled oil targets in shallow water Carnarvon Basin
One of the best undrilled oil targets in shallow AUSTRALIA water Carnarvon Basin For personal use only – BANIYAS VALUE 9-47 million barrels of oil equivalent potential Seismic amplitude conforms with structure 150 million barrels produced from adjacent fields NEXT STEPS Secure rights over en
Slide 23: 2009/10 Capital Allocation
2009/10 Capital Allocation THE COMPANY For personal use only USA $8 million Production and exploration FOCUS of internal capital AUSTRALIA and resources $3 million Southern Cooper Coal Seam Gas (CSG) AUSTRALIA Carnarvon Basin Low capital spend • Shallow water oil and gas next 12 months < $1 millio
Slide 24: Activity ramping up: indicative drilling schedule
BUILDING ON Activity ramping up For personal use only SUCCESS Indicative drilling schedule 2009 2010 Nov Dec Jan Feb Mar Apr May Jun US Onshore Gulf Coast PILOT Southern Cooper Basin Carnarvon Basin
Slide 25: Multiple growth opportunities
Multiple growth opportunities BUILDING ON For personal use only SUCCESS Market capitalisation underpinned by USA production and cash on hand Australian Coal Seam Gas, USA conventional gas and other exploration assets provide multiple value add positions New business under review Experienced
Slide 26: Multiple growth opportunities
Multiple growth opportunities BUILDING ON For personal use only SUCCESS Market capitalisation underpinned by USA production and cash on hand Australian Coal Seam Gas, USA conventional gas and other exploration assets provide multiple value add positions New business under review Experienced
Slide 27: JORC Compliance Statement – FuturGas Resource
www.strikeoil.com.au For personal use only ASX Code: STX JORC COMPLIANCE STATEMENT – FUTURGAS RESOURCE The FuturGas coal resources presented in this report are located at Kingston South Australia and have been classified and reported in accordance with the JORC code. The JORC resource estimate is co