Strike Energy Limited · ASX:STX
Strike Energy — Investor Presentation (July 2011)
22 slides from Strike Energy's investor presentation, Jul 4, 2011
Slide 1: New US Initiatives to Deliver Imminent Re-rating
For personal use only New US Initiatives to Deliver Imminent Re-rating July 2011
Slide 2: Growing US Portfolio
GROWING US PORTFOLIO For personal use only New Initiatives • Positions secured in two of the fastest developing onshore oil and gas plays Eagle Ford Shale: Multi-million barrel discoveries on developing trend Wilcox Slope: Onshore testing of the Deep Wilcox trend that hosts giant offshore oil fi
Slide 3: Eagle Ford Shale: A New US Initiative
EAGLE FORD SHALE: A NEW US INITIATIVE For personal use only • Strike holds a 27.5% Joint Venture interest • 18,000 acres secured – leasing ongoing [4,950 acres net to Strike] Active Joint Venture Leasing • Focus on the oil fairway • Eagle Ford Shale developing as the largest oil field discovery in U
Slide 4: Eagle Ford Shale: On Trend from Discovery Wells
EAGLE FORD SHALE: A NEW US INITIATIVE For personal use only • On trend with high rate discovery wells; EOG, Petrohawk and Magnum Hunter • Adjacent to Southern Bay wells: current fraccing and testing (Fayette County) ON TREND FROM DISCOVERY WELLS
Slide 5: Eagle Ford Shale: The Scale of the Opportunity
EAGLE FORD SHALE: A NEW US INITIATIVE For personal use only • Based upon Eagle Ford Shale results to date (oil window) estimated ultimate recoveries, 0.45 to 1.0 million barrels of oil equivalent (boe) per 160 acres • Potential in current leased area 50-112 million boe (14-30 million boe net to Stri
Slide 6: Wilcox Slope: New US Initiative
WILCOX SLOPE: NEW US INITIATIVE For personal use only • New exploration frontier following proven deep Wilcox trend: host to giant oilfields in offshore Gulf of Mexico • Recent large discoveries (McMoRan example Davy Jones) confirm trend extends into shallow water/onshore • 10% in 37,000 acres onsho
Slide 7: Wilcox Slope: Large Scale Exploration Opportunities
WILCOX SLOPE: NEW US INITIATIVE Drilling within weeks For personal use only • Numerous targets from 3D seismic • First prospect 680 Bcfe – Kennison 1 on West Plumb Bob prospect • Well to spud August 2011 • Large land position (St Landry Canyon JV) Eagle Ford Shale in frontier exploration opportunity
Slide 8: US Business: Wilcox Play, Texas
EXISTING US BUSINESS Wilcox Play, Texas For personal use only • Exploring Wilcox Shelf, Texas, for past five years • Four discoveries: Drilling success twice industry success rate Two sold after three years; returning $70 million in production and sale proceeds One on production (Louise) One t
Slide 9: Strong Cash Flow from High Margin Production
EXISTING US BUSINESS Wilcox Play, Texas For personal use only Louise • Gardner Duncan 1 (40% STX) • 20 Bcf potential • Producing 5mmcfe (liquids rich) since April 2010 • Annual Revenue to STX ~ $5 million Homeplace • Sadie 1 (40% STX) • 20 Bcf potential Louise • Planned testing/production August 201
Slide 10: US Position: High Class Portfolio
US POSITION Large scale growth opportunities supported by production For personal use only STX Area (Acres) PRODUCTION WI Gross Net Gross Potential Status • Producing Louise (Gardner Duncan 1) 40% 1,280 512 20 Bcfe • STX share 5 MMcfed • Production third quarter Homeplace (Sadie 1) 40% 640 256 20 Bc
Slide 11: New Australian Initiative
NEW AUSTRALIAN INITIATIVE For personal use only • Increasing exposure to large scale opportunities in the NWS (North West Shelf) Super Basin – Applications lodged Three year window of opportunity as multiple permit reductions fall due • Expanding exposure to unconventional shale oil-shale gas oppo
Slide 12: Australian Business: Exposure to Large Scale Resource Plays
EXISTING AUSTRALIAN BUSINESS For personal use only Southern Cooper Basin • Vast unconventional gas and liquids potential plus conventional oil Carnarvon Basin • Conventional oil and gas in the shallow CARNARVON water SOUTHERN COOPER Kingston Lignite Resource • Potential for world class coal gasifica
Slide 13: Southern Cooper Basin: Basin Wide Unconventional Evaluation
EXISTING AUSTRALIAN BUSINESS Southern Cooper Basin For personal use only • New exploration frontier emerging – Vast unconventional gas and liquids potential identified • Active competitor evaluation of Permian Coal Measures and associated shales underway - Beach, Senex, Santos, Drillsearch • Large l
Slide 14: Southern Cooper: Liquids Rich Unconventional Fairway?
EXISTING AUSTRALIAN BUSINESS Southern Cooper – Liquids rich unconventional fairway? For personal use only Extensive “liquids rich” unconventional play evidenced by: SENEX: VINTAGE CROP 1 • Permian shales and coals in “oil generation window” Conventional oil fields • Presence of conventional oil fi
Slide 15: Kingston Lignite Deposit: Surface Coal Gasification
EXISTING AUSTRALIAN BUSINESS Kingston Lignite Deposit – Surface coal gasification For personal use only Kingston – STX: 100% and Operator • 578 Million tonnes JORC compliant lignite resource - open pittable • Gas equivalent - 3.35 to 4.85 Tcf • Comprehensive semi industrial scale gasification test w
Slide 16: Kingston: The Scale of the Opportunity
EXISTING AUSTRALIAN BUSINESS Kingston – The scale of the opportunity For personal use only Example – World scale Urea Project : 1.7 million tonnes/annum Urea Price Revenue Potential Project Life Revenue $/tonne $/annum 25 years 300 $510 million $12.8 billion 350 $595 million $14.9 billion Current Pr
Slide 17: Carnarvon Basin
EXISTING AUSTRALIAN BUSINESS Carnarvon Basin For personal use only • Large, shallow water, acreage position • Targeting oil and high value WA domestic gas markets • Larger scale prospects under review - applications lodged • Farmouts and trades under evaluation SHALLOW WATER OIL AND GAS OPPORTUNITIE
Slide 18: Australian Positions
AUSTRALIAN POSITIONS For personal use only STX Area (sq kms) EXPLORATION WI Gross Net Gross Potential Status COOPER BASIN REGION • PEL’s 94, 95 & 96 drilling end • Unconventional, CSG, shale gas 35-100% 8,444 4,630 Multi TGF Gas 2011/early 2012 • Senex Vintage Crop 1 testing on PEL 95 boundary • Con
Slide 19: Strike Near Term Program Summary
Strike near term program summary For personal use only Exploration 3 to 12 Month Program Texas - Eagle Ford Shale • Leasing ongoing • Eagle Landing JV • 1 well – 4th quarter 2011 Louisiana - Wilcox • 1 well – 3rd quarter 2011 • St Landry Canyon • Homeplace production start – 3rd quarter 2011 Texas -
Slide 20: Capital Structure
For personal use only As at 1 July 2011 Strike Energy Limited (STX) Shares on issue (ASX: STX) million 328.6 Shares on Issue 350 Options on issue million 14.8 300 Current share price A$ 0.15 250 Market capitalisation A$ million 49.3 Millions 200 Debt A$ million Nil 150 Strike drilled 19 • Top 20 sha
Slide 21: 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 22: JORC Compliance Statement – Kingston Lignite Resource
www.strikeenergy.com.au For personal use only JORC COMPLIANCE STATEMENT – KINGSTON LIGNITE RESOURCE The Kingston lignite 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