Strike Energy Limited · ASX:STX
Strike Energy — Shareholder Meeting (November 2021)
42 slides from Strike Energy's shareholder meeting presentation, Nov 15, 2021
Slide 1: Chairman's AGM Address and MD Presentation
15th November 2021 ASX: STX The Company Announcement Officer ASX Ltd via electronic lodgement Chairman’s AGM Address and MD Presentation For personal use only Please find attached the following items to be presented at Strike Energy Limited’s Annual General Meeting to be held at 11:00 am (AWST) toda
Slide 2: Chairman's 2021 Annual General Meeting Address
Chairman’s 2021 Annual General Meeting Address Ladies and Gentlemen, For personal use only 2021 has been an important year for the company in terms of advancing towards our strategy of becoming an integrated energy, fertiliser and renewable developer. In May, we announced our plan to reach net-zero
Slide 3: Chairman's Address (continued)
imports. Australian farmers have felt the pain of international energy shortages and volatile shipping routes impacting urea pricing. Locally produced and competitively priced urea is critical to the success of Australian broad acre farming. Project Haber plays an important role in the domestication
Slide 4: MD's Address
MD’s Address For personal use only An Integrated Energy, Fertiliser & Renewables Developer 1
Slide 5: Important notices
Important notices Summary information an indication or guarantee of future performance. These statements relate to This presentation contains summary information regarding Strike Energy and its future events and expectations and as such involve known and unknown risks For personal use only subsidiar
Slide 6: The year in review
For personal use only The year in review 3
Slide 7: Strategic outcomes
Strategic outcomes Project Haber 149 km² of highly For personal use only domestic 1.4mtpa urea fertiliser development prospective Permian gas acreage won in bid round land, engineering, offtake maiden gas reserves 100% of the Perth Basin ASX300 farmout to drill geothermal rights acquired inclusion W
Slide 8: Operational outcomes
Operational outcomes For personal use only 2 flow tests performed 3 wells 128km of 2D executed seismic acquired 87 TJ/d 12 point heat Erregulla needle survey gas plant 2nd drilling campaign of 3 complete FEED wells procured and approved completed 5
Slide 9: How did we go about our work
How did we go about our work WE3 well site cultural heritage clearance team including members For personal use only of the Southern Yamatji nation TCFD Strike has included full TCFD style disclosure within its annual report and established an ESS Board Sub-Committee Worked with farmers and landholde
Slide 10: Environmental, Safety and Social Performance
Environmental, Safety and Social Performance WA Minister for Resources visits For personal use only West Erregulla Zero 576,356 reportable environmental operational man hours incidents LTI free and counting Three Springs, Mingenew and Carnamah Primary School Excursion to West Erregulla 35% current f
Slide 11: Fully integrated energy, renewable power and fertilisers
Fully integrated energy, renewable power and fertilisers Project Haber Fertilisers For personal use only 1.4mtpa Wholesale Urea Sales Raw Gas Ammonia/Urea Raw Gas Sales Transmission Production WA Urea Sales Hydrogen Electrolyser Identification Production Core competency drives integrated value Geoth
Slide 12: Net Zero Scope 1 & 2 2030
Net Zero Scope 1 & 2 For personal use only 2030 9
Slide 13: Strike: Scope 1 & 2 net zero by 2030
Strike: Scope 1 & 2 net zero by 2030 Strike’s projected net carbon production from its various projects and operations CO2e-kt p.a. base lined at 2019 For personal use only *all numbers are Strike share Scope 1 & 2 Scope 3 Offset Target Scope 1 & 2: Aspired Scope 3: Net Zero 2030 Net Zero Plan 562 1
Slide 14: The road ahead
For personal use only the road ahead 11
Slide 15: Restoring confidence and building value
Restoring confidence and building value Strike Energy Limited Planned & funded For personal use only Share Price Performance for current Board & Management activities* 0.35 West Erregulla Reserves 0.30 value today 0.25 Gas Resource Addition & Pathway to 1st Production 0.20 Walyering and the Greater
Slide 16: West Erregulla Resources & Reserves
West Erregulla Resources & Reserves Total Gas West Erregulla Gas Build up of P50 Gas Resources NSAI certified, PJ, gross NSAI certified, PJ, gross For personal use only Gas in place Kingia 1,072 Recoverable High Cliff 198 626 Wagina/Dongara 920 109 109 771 769 38 128 69 626 110 474 300 480 300 P90 P
Slide 17: West Erregulla Gas Project
Greater Erregulla Phase 1: 80 TJ/d West Erregulla Gas Project For personal use only Resources & Reserves Sufficient Resources & Reserves independently certified by NSAI All EPs submitted awaiting Environmental Approvals approvals Foundation Gas Sales ~9% of WA’s gas consumption Development Plan BOO
Slide 18: Consistent geological outcomes from the Erregulla region
Consistent geological outcomes from the Erregulla region in the Permian Gas Fairway West Erregulla 3 West Erregulla 2 For personal use only 100% Suspended 43m net pay at pending re-entry 14% phi and completion 69mmscfd Strong gas shows in the Carynginia conventional reservoir South Erregulla
Slide 19: Strong funnel of low-cost gas opportunities
Strong funnel of low-cost gas opportunities Perth Basin gas resource opportunities are For personal use only sized and aligned with Strike’s Resource development priorities Leads Walyering West Erregulla Coomalo Erregulla Contingent East Lead B Ocean Hill Various Permian Eneabba South Leads Deep Err
Slide 20: Walyering-5 appraisal well
Walyering-5 appraisal well W5 Spud occurred today, 33 days For personal use only of planned drilling operations W2 Appraising existing gas discovery with 38% POS1 W5 drilling into southern structural high where amplitude response is interpretated to be diagnostic of good quality reservoir W5 W1 W4 C
Slide 21: Understanding history to build drilling confidence
Understanding history to build drilling confidence Strike’s geotechnical work based off the new high-resolution 3D seismic concluded: For personal use only 1. Existence of micro-faulting creating compartmentalisation in parts of the Cattamarra 2. Amplitude signatures are diagnostic of coarse sand ch
Slide 22: South Erregulla-1
South Erregulla-1 low risk, updip near field exploration Base Kingia Depth 1 South Erregulla is bounded by the West Erregulla Structure and Trieste 3D seismic data sets where observed For personal use only Greater Erregulla Good Data structurally conformable amplitude anomalies are diagnostic of g
Slide 23: Resource & Reserve distribution within Greater Erregulla
Resource & Reserve distribution within Greater Erregulla EP4691 EP5031,2 For personal use only (50% Strike operated equity) (100% Strike operated equity) SW WE5 WE2 SE1 (prop) NE -4,485m 2U -4,530m -4,560m 2U 1P 1P 2U 1C 1C 1P -4,630 m 2P 2C 2C 2P -4,650 m -4,655 m 1C 2U 2U -4,670 m upside West Erre
Slide 24: Strike's acreage at the centre of attention
Strike’s acreage at the centre of attention Strike, Beach, Mitsui and Minres / Norwest For personal use only Permian Portfolio’s Discovery and successful appraisal at West Erregulla Lockyer Deep / has broken open the Permian Gas Fairway. Waitsia North Erregulla Lockyer Deep success is the first
Slide 25: The market
For personal use only the market 22
Slide 26: WA domestic gas market
WA domestic gas market WA Gas Buyers Who’s selling it today? 2030 For personal use only Oct-20 Distribution Other ExxonMobil 9% Electricity (GPG) Shell 4% 16% Industry 5% Woodside 7% 46% Santos 28% Mining 1,200 TJ/d 14% +64% BHP 36% Mineral processing 17% Chevron 2030 The mining industry accounts fo
Slide 27: WA gas market update – supply down, price up
WA gas market update – supply down, price up 4 quarters >$5.25GJ For personal use only consecutive gas storage withdrawals spot gas prices Material withdrawals from gas storage has now become an ongoing Spot prices highest since 2013 with market volumes structural trend since mid-2020, evidencing th
Slide 28: WA Domgas Supply & Demand
WA Domgas Supply & Demand WA domgas supply/demand balance For personal use only TJ/d (source: AEMO, Rystad & Strike Analysis) 1,200 800 400 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Low High + Project Haber Waitsia West Erregulla Ph1 Base Scarborough Beharra Springs Existing Production It
Slide 29: The Perth Basin natural advantage
The Perth Basin natural advantage Perth Basin customers benefit from a material transportation For personal use only and carbon cost advantage Estimated Transmission Costs WA LNG North West The Perth Basin gas can deliver superior outcomes: APA’s sanctioned $1.44 GJ Northern Goldfields Strike Perth
Slide 30: The opportunity
For personal use only the opportunity 27
Slide 31: Project Haber – 1.4 mtpa low carbon urea facility
Project Haber – 1.4 mtpa low carbon urea facility Project Haber – Proposed 1.4mtpa Urea Plant More competitive pricing For personal use only Certainty of supply Reduced pricing volatility Carbon reduction Estimated $8.4bn in GDP, 3.8% boost to Mid-West economy each year, 1,100 construction jobs & 30
Slide 32: Project Haber – globally competitive
Project Haber – globally competitive Global urea cash cost curve $USD/ton FOB Source: CRU & Strike Internal For personal use only Other costs Project Haber is projected to Energy be more cost competitive on a cash cost basis versus 91% of all global supply. Project Haber cash cost Geraldton coas
Slide 33: Global fertiliser prices & shipping
Global fertiliser prices & shipping Urea FOB Arab Gulf (USD/tonne) Baltic Dry Shipping Index For personal use only US$1000/t sold on spot market Nov-21 800 5,000 700 600 4,000 +220% +479% 500 3,000 400 2,000 300 1,000 200 0 Q1/16 Q1/17 Q1/18 Q1/19 Q1/20 Q1/21 1/01/2020 1/07/2020 1/01/2021 1/07/2021
Slide 34: Project Haber – reducing Australia's urea carbon footprint
Project Haber – reducing Australia’s urea carbon footprint Average CO2 intensity of urea imported to Australia vs Project Haber For personal use only (tonnes of CO2e per tonne of urea) CO2e-urea Net impact via Project Haber Green Energy footprint of Aus Stretch 0.10 -0.08 -60% -66% -0.48 Gas 0.62 0.
Slide 35: Hydrogen & Carbon
Hydrogen & Carbon Possible Haber green hydrogen demand and CO2 sink over time (tonnes of CO2e and source of hydrogen by %) For personal use only Kt CO 2 100% 500 Haber becomes CO2 Break through point deficient to on cost of Green H2 make urea 400 75% (< A$2/kg), with high to very high carbon Some te
Slide 36: The future
For personal use only the future 33
Slide 37: Perth Basin Geothermal
Perth Basin Geothermal Heat Needle Survey Locations Strike owns 100% of the existing For personal use only 3,500km² of Prospective Geothermal geothermal rights in the Perth Basin. Acreage 12-point heat needle survey completed; Waitsia data corroborates Strike subsurface heat Irwin-1 mapping. I
Slide 38: Mid West Geothermal business model
Mid West Geothermal business model Mid West Geothermal Power Concept Primary objective is to For personal use only generate maximum zero carbon 24/7 dispatchable and synchronous electricity. Industrial transmission Secondary opportunities power export include utilising the residual turbine heat
Slide 39: Irwin-1: modelling & resource calibration
Irwin-1: modelling & resource calibration Irwin-1 static flow modelling with artificial lift, max 30k bbls/d (esp) For personal use only bbls/d x10, psi Irwin-1 was drilled in 2015 by Origin to test the gas 180 potential to the east of the Senecio and Waitsia 6,000 discoveries but found water wet
Slide 40: A complementary transition
A complementary transition Strike’s Geothermal Overlap between gas and Core Skills & Competencies Operational Prerequisites geothermal businesses in For personal use only the Perth Basin Safety in Same Operations Reservoir Subsurface Same Identification Communities & & Mapping Landholders Deep Onsho
Slide 41: A pipeline of near term material events
A pipeline of near term material events Upstream drilling & testing events For personal use only W-5 WE5 Retest SE-1 Natta WE 3D WE3 Results & testing Results & testing Results & testing Walyering-5 South Erregulla-1 WE3 Re-entry November ‘21 Strike June ‘22 Other Perth Basin events Project Haber En
Slide 42: For personal use only
For personal use only 39