Strike Energy Limited · ASX:STX
Strike Energy — Investor Presentation (June 2014)
22 slides from Strike Energy's investor presentation, Jun 4, 2014
Slide 1: ASX Announcement: Investor Presentation
ASX Announcement 4 June 2014 For personal use only The Company Announcement Officer ASX Ltd via electronic lodgement INVESTOR PRESENTATION Please find attached an Investor Presentation providing an update on the Company’s activities associated with the rapid development and commercialisation of its
Slide 2: Strike Energy Limited Investor Presentation June 2014
For personal use only STRIKE ENERGY Limited Investor Presentation June 2014
Slide 3: Company Overview: Corporate
Company Overview: Corporate Strike Energy Limited (ASX : STX) is an Australian based, independent oil and gas exploration and production company. For personal use only The company is focused on the development of a substantial gas resource in the Southern Cooper Basin to meet Eastern Australian gas
Slide 4: Company Overview: Assets
Company Overview: Assets Australia, Southern Cooper Basin USA, Texas For personal use only Moomba Marsden 1 PEL 95 Permian Basin Davenport 1 Le Chiffre 1 PEL 94 Klebb 1 Texas Eagle Ford Shale PEL 96 Eaglewood JV (Louise field) 0 20 Kilometers Southern Cooper Basin, Australia Texas, USA Strike Energy
Slide 5: Southern Cooper Basin Gas Project
For personal use only Southern Cooper Basin Gas Project
Slide 6: Australian east coast gas demand
Australian east coast gas demand Historically, Australia’s east coast gas demand approximated 650 -> 750 PJ/annum, was over supplied and characterised by low pricing For personal use only (A$2-$3/GJ) and low liquids upside. The maturation of significant coal seam gas (CSG) reserves in the Bowen and
Slide 7: Changing market dynamics
Changing market dynamics All three LNG projects are likely to be short gas. Moreover, there is increasing uncertainty as to the deliverability, rate and cost of a For personal use only significant component of ‘equity’ gas outside of the core CSG sweet spots. Supply PricING Significant cost ‘tiering
Slide 8: The opportunity
The opportunity Strike’s successful appraisal program (PEL 96) together with recent funding initiatives have positioned the Company to accelerate a For personal use only focussed commercialisation program centred on the PEL 96 permit. The fully funded 2014 activities have the objective to position t
Slide 9: 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 10: 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 11: 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 12: 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 13: 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 14: 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 - 4 June 2014 13
Slide 15: Unconventional gas play economics
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 16: 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 17: 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 18: 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 For personal use only commerciality. The drivers of these outcomes have included target zone depths, pressures,
Slide 19: 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 20: 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 21: Opportunity Summary
Opportunity Summary For personal use only World-scale resource market demand Appraisal program successfully completed Production testing next step in project development Potentially compelling economics Rapid commercialisation program key milestones in 2014 Established path to market Successful comm
Slide 22: 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