Strike Energy Limited · ASX:STX
Strike Energy — Australian Resources Investment Conference 2016
24 slides from Strike Energy's conference presentation, Mar 3, 2016
Slide 1: ASX Announcement: Australian Resources Investment Conference
ASX Announcement 3 March 2016 For personal use only The Company Announcement Officer ASX Ltd via electronic lodgement AUSTRALIAN RESOURCES INVESTMENT CONFERENCE Please find attached a presentation to be given by Mr David Wrench at the Australian Resources Investment Conference sponsored by Schroeder
Slide 2: Schroeder Equities Australian Resources Conference, Zurich
STRIKE ENERGY LIMITED For personal use only SCHROEDER EQUITIES AUSTRALIAN RESOURCES CONFERENCE Zurich, March 2016 Strike Energy Limited – Schroeder Equities – Australian Resources Conference 1
Slide 3: Strike Energy Limited Overview
Strike Energy Limited Overview Strike Energy Limited (ASX : STX) is an Australian based, independent oil and gas exploration and production company. The company is focused on the development of a substantial gas resource in the Southern Cooper Basin to meet For personal use only Eastern Australian g
Slide 4: Executive Summary
Executive Summary For personal use only Tightening gas market driving Eastern Australian gas price increases Strike controls the only new, large scale gas project with the essential pre-requisites for successful development Southern Cooper Basin Gas Project (SCBGP) targeting early cashflow generatio
Slide 5: Eastern Australian Gas Market: Supply tightness emerging
Eastern Australian Gas Market: Supply tightness emerging Australia’s east coast gas demand has historically been supplied from conventional reserves in the Cooper Basin (SA) and the Gippsland Basin in Bass Strait. These reserves are in decline. Substantial new CSG resources have been developed in Qu
Slide 6: Eastern Australian gas market: Gas price trending higher
Eastern Australian gas market: Gas price trending higher Eastern Australian gas prices are trending up – the only energy market in the world to be experiencing price increases. For personal use only Eastern Australian gas prices are responding to market tightness Strike Energy Limited – Schroeder Eq
Slide 7: Eastern Australian Gas Market: Substantial opportunity for Strike
Eastern Australian Gas Market: Substantial opportunity for Strike Prospective 2C Resource + Contingent Resource Moomba PEL 94 2,702 Bcf^ For personal use only 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 1,123 Bcf* 104 Bcf* S
Slide 8: Eastern Australian Gas Market: Substantial opportunity for Strike
Eastern Australian Gas Market: Substantial opportunity for Strike Strike’s multi-Tcf gas resource, directly connected to the ~40 Tcf Eastern Australian gas market, is ideally placed to be a competitive supply solution. In the short term, Strike plans to develop an initial project targeting domestic
Slide 9: Key activities/milestones 2013-2016
Southern Cooper Basin Gas Project: Key activities/milestones 2013-2016 In less than three years Strike has used a disciplined approach to rapidly progress from a large multi-Tcf resource discovery, to technical feasibility and towards commercial feasibility. For personal use only Building to Funding
Slide 10: Essential pre-requisites for development
Southern Cooper Basin Gas Project: Essential pre-requisites for development For personal use only A successful gas resource development needs to deliver on all of the essential pre-requisites below Scale Location Low Supply Cost Capital-lite Industry Support Strike Energy Limited – Schroeder Equitie
Slide 11: Essential pre-requisites: Scale
Southern Cooper Basin Gas Project: Essential pre-requisites for development Scale Location Low Supply Cost Capital-lite Industry Support For personal use only PEL 95 PEL 94 STX 50% STX 35% PEL 96 STX 66.67% 11 Tcf PELA 640 STX 100% Materiality that Potential for domestic Drives low-cost outcomes enc
Slide 12: Essential pre-requisites: Location
Southern Cooper Basin Gas Project: Essential pre-requisites for development Scale Location Low Supply Cost Capital-lite Industry Support For personal use only Cooper Basin – key hub for Eastern Australian gas markets Gladstone SCBGP is directly connected to Eastern Australian gas pipeline network ~$
Slide 13: Essential pre-requisites: Low Supply Cost
Southern Cooper Basin Gas Project: Essential pre-requisites for development Scale Location Low Supply Cost Capital-lite Industry Support For personal use only Well type curve PEL 96 well full cycle costs (undiscounted) Stable production phase Cumlative production(PJ) Well capex (drill/complete/conne
Slide 14: Essential pre-requisites: Low Supply Cost curve
Southern Cooper Basin Gas Project: Essential pre-requisites for development Scale Location Low Supply Cost Capital-lite Industry Support For personal use only Strike’s analysis highlights the steepness of the Eastern Australian gas supply cost curve. Strike’s Southern Cooper Basin Gas Project has th
Slide 15: Essential pre-requisites: Capital-lite
Southern Cooper Basin Gas Project: Essential pre-requisites for development Scale Location Low Supply Cost Capital-lite Industry Support For personal use only Typical ‘greenfields’ development upfront capital SCBGP upfront capital X Downstream Export Export facilities infrastructure Infrastructure a
Slide 16: Essential pre-requisites: Industry Support
Southern Cooper Basin Gas Project: Essential pre-requisites for development Scale Location Low Supply Cost Capital-lite Industry Support For personal use only Signed GSA’s evidence the collective industry intent to facilitate new gas supply Mount Isa into the Eastern Australian Gladstone gas market.
Slide 17: Essential pre-requisites for development
Southern Cooper Basin Gas Project: Essential pre-requisites for development For personal use only Over the past few years Strike has been able to demonstrate the SCBGP is the only project of scale that can deliver on the essential pre-requisites for successful development Scale Location Low Supply C
Slide 18: Status update: Operations Update
Southern Cooper Basin Gas Project: Status update For personal use only Operations Update Record gas volumes produced in February 2016 with increases in peak and average gas flow rates at Klebb 2 and Klebb 3. A series of tests at both wells have confirmed that gas flows build in line with a consisten
Slide 19: Targeting cashflow generation
Southern Cooper Basin Gas Project: Targeting cashflow generation For personal use only Sales Gas sales Cashflow Processing and Demonstration Project compression Production Klebb 1, 2, 3 & 4 Production Wells Klebb 2 and Klebb 3 pump Klebb 4 frac and completion - Demonstration project - NEXT STEPS upg
Slide 20: Potential scale
Southern Cooper Basin Gas Project: Potential scale San Juan Basin, New Mexico Southern Cooper Basin Gas Project For personal use only PEL 95 PEL 94 Fruitland Coal Fairway PEL 96 PELA 640 San Juan Basin Outline Fruitland Coal Fairway PEL 96 Productive acres 300,000 Acres (8/8) 665,820 Cumulative prod
Slide 21: Potential value
Southern Cooper Basin Gas Project: Potential value The graph below highlights the revenue potential of fully developed Eastern Australian onshore gas resources. For personal use only $75B @ $5/GJ 1 Tcf = 1,000 Bcf 1 Bcf ~1 PJ 1 PJ = 1,000,000 GJ @ $7/GJ 1 Tcf ~ 1,000,000,000 GJ Est. ex-field revenue
Slide 22: Opportunity summary
Opportunity summary For personal use only Tightening gas market driving Eastern Australian gas price increases Strike controls the only new, large scale gas project with the essential pre-requisites for successful development Southern Cooper Basin Gas Project (SCBGP) targeting early cashflow generat
Slide 23: 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 24: Important Notice: continued
���ortant �otice� continue� Important Notice: continued Competent Persons Statement Competent Persons Statement The information in this presentation that relates to the PEL 96, PEL 95 and PEL 94 contingent For personal use only resources Theestimate information has in been thistaken from thethat pre
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