Strike Energy Limited · ASX:STX
Strike Energy — Shareholder Meeting (December 2020)
24 slides from Strike Energy's shareholder meeting presentation, Dec 1, 2020
Slide 1: Chairman's Address and AGM Presentation
1st December 2020 ASX: STX The Company Announcement Officer ASX Ltd via electronic lodgement Chairman’s Address and AGM Presentation Please find attached the following items to be presented at Strike Energy Limited’s Annual General Meeting to be held at 10:00 am (AWST) today. • Chairman’s address; a
Slide 2: Chairman's Address
Ladies and Gentlemen, It goes without saying that 2020 has been a year quite unlike any other, and we all know why. But as we meet today to consider Strike Energy’s performance during the 2019/20 financial year, and look ahead to the future, I also feel that we’ll look back on this as a year unlike
Slide 3: Chairman's Address (continued)
delivery of large-scale projects are a huge asset to Strike and will help us to achieve our vision of becoming one of the largest producers of domestic gas in Western Australia. In October we welcomed Ms Mary Hackett to our Board. Ms Hackett is a very accomplished energy industry professional, and t
Slide 4: WA's new domestic energy player
WE3 drilling location 2020 Annual WA’s new domestic General Meeting energy player
Slide 5: Important Notice
Important Notice Summary information forward-looking statements in this presentation or any changes in events, conditions or This presentation contains summary information regarding Strike Energy and its subsidiaries current circumstances on whichany such statement is based. as at 1 December 2020. T
Slide 6: A Perth Basin: Developer, Appraiser & Explorer
A Perth Basin: Developer, Appraiser & Explorer Board of Directors Non-Exec Chairman West Erregulla John Poynton AO Cit WA 2C 593 BCF & 137BCF Australian Business Leader P50 PR ¹ ² Governance & Finance Significant discovered gas resources South Erregulla Non-Exec D. Chairman 1600 BCF P50 PR ¹ ² Nev P
Slide 7: 2020 achievements are setting the foundations for decades of success
2020 achievements are setting the foundations for decades of success Defined Permian Gas Fairway Potential (South Commenced 2021 Exploration Mary Hackett Erregulla) Secured Ensign West Erregulla program loaded joins Board of 970 Rig Appraisal Drilling Operations with 3 rig slots Directors Acquired a
Slide 8: Environmental, Safety and Social Performance
Environmental, Safety and Social Performance WE3 well site cultural heritage Traditional Owner contractors clearance team including members supporting civil construction of WE3 of the Southern Yamatji nation lease and drill pad Strict compliance $0.5m ensuring cultural spent on cultural heritage pro
Slide 9: Environmental, Safety and Social Performance
Environmental, Safety and Social Performance Zero 234,940 recordable operational man hours environmental incidents LTI free and counting West Erregulla camp on local landholders farm Precise management of field activities to reduce or avoid impact to surrounding native vegetation and local wildflowe
Slide 10: 2020's actions are being converted to total shareholder return
2020’s actions are being converted to total shareholder return $/share 0.30 8,000 0.25 +32% 7,000 0.20 0.15 6,000 0.10 5,000 0.05 STX ASX All Ords 1/01/2020 1/03/2020 1/05/2020 1/07/2020 1/09/2020 1/11/2020 7
Slide 11: The Perth Basin equation to drive WA's economic growth
The Perth Basin equation to drive WA’s economic growth Well supplied WA industrial gas market Reduces possible shortage and displaces higher cost Low CO2 Onshore supplies Abundant Gas market expansion and reduced diesel power High Low-Cost Energy Next to Pressure APA constructing Pipeline Perth Basi
Slide 12: Greater Erregulla – Development Strategy
Greater Erregulla – Development Strategy Phase 1 80 TJ/d sales gas joint development with Warrego AGIG to build, own and operate gas plant Phase 2 To be optimally sized to support resource footprint of the West Erregulla 2C 593 BCF Greater Erregulla region +137 BCF P50 PR AGIG Gas Plant STX Sh
Slide 13: Project Delivery Continues
Project Delivery Continues Discovered Resource High Confidence Progression to Reserve Drilling Underway Foundation Gas Sales Fully Contracted1 Concept Select 80 TJ/d Finance Pre-Development up to $28m Final Investment Decision Targeting Q1 /21 Gas Marketing & Phase 2 Regional Drilling Dates are indi
Slide 14: West Erregulla Appraisal Drilling
West Erregulla Appraisal Drilling Drillin g Progre ss Cased & cemented down to 2,462m. Drilling ahead 2nd intermediate hole section currently at 3,457m. Good heavy hydrocarbons observed throughout the entire Cattamarra sequence which aligns with Strike’s geological model. Additional well eng
Slide 15: Perth Basin drilling program
Perth Basin drilling program Strike secured 3 option slots on Rig 970 post the West Erregulla appraisal campaign. Each slot to Rig 970 Strike Well Program be firmed prior to well commitment. Significant Permian West Erregulla 3 upside to be completed as producer 267 BCF Wagina upside West Erregulla
Slide 16: South Erregulla - 2021
South Erregulla - 2021 Strike’s current interpretation yields a POS of 57% driven by: 1. South Erregulla being the regional high 2. Appearing connected to West Erregulla and is therefore likely co-charged 3. Is shallower than West Erregulla 4. Has appreciable amplitude blooms (diagnostic of hydroc
Slide 17: Walyering - 2021
Walyering - 2021 West Erregulla 3 Cattamarra observations are supportive 1. Ocean Hill ~200km² of 3D of Strike’s Jurassic wet-gas geological model seismic planned for end of CY21 / early Walyering now represents a high confidence wet-gas STX 100% CY22 target. Strike progressing appraisal drillin
Slide 18: Update to the WA gas market
Update to the WA gas market
Slide 19: New investment in WA projects is collapsing
New investment in WA projects is collapsing WA Production & Exploration wells drilled per Basin per year Sustained suppression of drilling activity will result in a 194 180 prolonged period with a lack 158 of new gas developments. Infill drilling has also decreased which will result 108 -90% in
Slide 20: New supplies pushed out, demand shortfall emerging quickly
New supplies pushed out, demand shortfall emerging quickly Refreshed WA domestic gas supply and Events of 2020 have caused substantial demand outlook change in the outlook for the WAdomestic gas market, due to: TJ/d 1,400 Long term deferral of Browse -211 Scarborough& 1,200 -361 Pluto 2 delay 1,000
Slide 21: The Perth Basin natural advantage
The Perth Basin natural advantage Perth Basin customers benefit from a material transportation cost advantage WA Domestic Gas Market: Estimated Transmission Costs WA LNG up to 1,200 TJ/d North West Or approx. $2.2 bln market p.a. APA’s sanctioned $1.44 GJ Northern Goldfields Strike Perth Basin Inter
Slide 22: Perth Basin gas will start to capture the domestic market as contracts renewed
Perth Basin gas will start to capture the domestic market as contracts renewed Estimated Forward Breakeven Cost of Supply for Uncontracted Gas¹ (Relative $/GJ) Size, quality and Perth Basin (In Demand) WA domestic demand met location to market, Other In Demand (~1,200 TJ/d) coupled with onshore Ou
Slide 23: The broader economic and social license to continue Strike's investment cadence
The broader economic and social license to continue Strike’s investment cadence More Perth Basin Gas means: Lower Cost Lower CO2 New Industry Broader Uses Sweet gas stream Low cost enables a Onshore cost base Onshore gas industry with low impurities broader range of uses Excellent geology
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