Strike Energy Limited · ASX:STX
Strike Energy — Shareholder Meeting (November 2016)
20 slides from Strike Energy's shareholder meeting presentation, Nov 11, 2016
Slide 1: ASX Announcement: Chairman's Address and AGM Presentation
ASX Announcement 11 November 2016 For personal use only The Company Announcement Officer ASX Ltd via electronic lodgement CHAIRMAN’S ADDRESS AND AGM PRESENTATION Please find attached the following items which will be presented and discussed as part of the Annual General Meeting of the Company to be
Slide 2: Chairman's Address Annual General Meeting
STRIKE ENERGY LIMITED CHAIRMAN’S ADDRESS ANNUAL GENERAL MEETING 11 NOVEMBER 2016 Ladies and Gentlemen, The 2016 financial year has been another year of significant progress for our Company, with the near term For personal use only commercialisation of our world scale gas resource in the Southern Coo
Slide 3: 2016 Annual General Meeting: Managing Director's Presentation
STRIKE ENERGY LIMITED For personal use only 2016 ANNUAL GENERAL MEETING Sydney, 11 November 2016 Managing Director’s Presentation
Slide 4: 2016 AGM: Strike Energy Limited
2016 AGM: Strike Energy Limited For personal use only 2016 Review Eastern Australian Gas Market Southern Cooper Basin Gas Project Update Forward Plan - Funding and Objectives Strike Energy Limited - 2016 AGM Presentation 2
Slide 5: 2016 Key Highlights and Achievements
2016 Key Highlights and Achievements For personal use only Cooper Basin • Multiple desorption events observed during FY2016 • Major facility and pumping upgrade successfully completed • Four wells now contributing to de-watering at Klebb pilot • Demonstration facility concept advanced • On track to
Slide 6: Eastern Australian Gas Market
For personal use only EASTERN AUSTRALIAN GAS MARKET
Slide 7: Eastern Australian Gas Market: Gas prices trending higher
Eastern Australian Gas Market: Gas prices trending higher Market gas pricing Industry response Government response For personal use only Adelaide STTM Gas price 30 Collective industry intent Gas price spike a contributing factor to facilitate new gas to high SA electricity supply into the Eastern sp
Slide 8: Eastern Australian Gas Market: Summary
Eastern Australian Gas Market: Summary For personal use only Gas demand ~40 Tcf over twenty years; LNG the dominant gas buyer Supply tightening Supply tightness emerging and likely to worsen by 2020 Gas prices Domestic gas prices already reflecting changing market dynamics Cost Curve Eastern States
Slide 9: Southern Cooper Basin Gas Project
For personal use only SOUTHERN COOPER BASIN GAS PROJECT
Slide 10: Eastern Australian Gas Market: Substantial Opportunity
Eastern Australian Gas Market: Substantial Opportunity 2C For personal use only Prospective Moomba Resource + Contingent Resource PEL 94 2,702 Bcf^ 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* STX 35% One
Slide 11: Southern Cooper Basin Gas Project: Status
Southern Cooper Basin Gas Project: Status Resource scale World class onshore gas resource – ideally located. For personal use only Reservoir Favourable reservoir characteristics provide high confidence in future project scale and productivity. Pilot Production Project in PEL96 (STX 66.67% and operat
Slide 12: Proof of Concept
Proof of Concept Proof of concept will be demonstration of sustained gas flows somewhat above what we have achieved already. Klebb production testing has repeatedly shown the ability to initiate gas flows: For personal use only 1 Continuous de-watering periods are required to sufficiently reduce the
Slide 13: Southern Cooper Basin Gas Project: Planned activities
Southern Cooper Basin Gas Project: Planned activities For personal use only 2016 2017 H1 Objectives Planning Position project in 2017 H1 for initial development FID Pre-development planning and engineering Achieve first sales gas in 2018 Create additional project funding options that support Grant o
Slide 14: Southern Cooper Basin Gas Project: Near-term value opportunity
Southern Cooper Basin Gas Project: Near-term value opportunity Moving to commerciality and booking first project reserves are the key catalysts that will drive near-term value. Initial development activities within the proposed new Petroleum Retention Licence (PRL) has the potential to position the
Slide 15: Southern Cooper Basin Gas Project: Medium-term option value
Southern Cooper Basin Gas Project: Medium-term option value Grant of the proposed new PRL, together with continued gas market tightness, will highlight the considerable option value available from the underdeveloped acreage across the SCBGP. This acreage can be progressively delineated and developed
Slide 16: Forward Plan - Funding & Objectives
For personal use only FORWARD PLAN - FUNDING & OBJECTIVES
Slide 17: Raising $4.5m to Fund Operations
Raising $4.5m to Fund Operations Strike is conducting a $4.5 m Pro-Rata Non-Renounceable Rights Offer (“Offer”) For personal use only • 1 New share for every fourteen (14) Strike shares held. • $0.07 per New Strike Share. • Total raising up to $ 4.5 m (before transaction costs). Equity funds raised
Slide 18: Southern Cooper Basin Gas Project: Strike's Strategic Timeline
Southern Cooper Basin Gas Project: Strike’s Strategic Timeline For personal use only Strategic objectives Timing Beyond 2020 Expanded resource delineation across STX acreage Cost competitive third party gas supply for LNG exporters 2020 2018 Increasing Production FID New source of affordable gas sup
Slide 19: Important Notice
Important Notice This presentation does not constitute an offer, invitation or recommendation to subscribe for, or DeGolyer and MacNaughton was engaged by Strike to undertake an Independent Review of the gas purchase any security and neither this presentation nor anything contained in it shall form
Slide 20: Important Notice: continued
Important Notice: continued Competent Persons Statement For personal use only The information in this presentation that relates to the PEL 96, PEL 95 and PEL 94 contingent resources estimate has been taken from the independent reports as prepared by DeGolyer and MacNaughton, a leading independent in