Strike Energy Limited · ASX:STX
Strike Energy — Investor Presentation (November 2016)
23 slides from Strike Energy's investor presentation, Nov 11, 2016
Slide 1: Strike Energy Limited Non Renounceable Rights
STRIKE ENERGY LIMITED For personal use only Non Renounceable Rights 11 November 2016
Slide 2: Strike Energy Limited Overview
Strike Energy Limited Overview For personal use only 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 Eastern Australian g
Slide 3: Raising Up To $4.5m Equity to Fund Operations
Raising Up To $4.5m Equity 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
Slide 4: Investment Highlights
Investment Highlights • Massive multi-Tcf gas resource directly adjacent to existing infrastructure (MAPS) with access to the Eastern Australian gas market. For personal use only Multi-TCF Resource • Production pilot testing has substantially de-risked the resource. Adjacent to Infrastructure • Rese
Slide 5: Key Terms of the Entitlement Offer
Key Terms of the Entitlement Offer The Offer to raise gross proceeds of up to $4.5 m. Offer size and structure Maximum 64.3 million new Strike ordinary fully paid shares (New Shares) to be issued. For personal use only $ 0.07 per New Share representing: • 21.3% to the closing price of Strike’s share
Slide 6: Changes to Capital Base and Use of Proceeds
Changes to Capital Base and Use of Proceeds Changes to Capital Base For personal use only Strike shares currently outstanding (1) 900,330,946 Maximum new shares issued via entitlement offer 64,309,353 Total Strike shares outstanding following completion of Entitlement Offer 964,640,299 (1) In additi
Slide 7: Indicative Timetable
Indicative Timetable For personal use only Announcement of the Entitlement Offer - lodgement of Offer Booklet, Appendix 11 November 2016 3B, Cleansing Statement and lodgement and mailing of letter to option holders Lodgement and mailing of letters to eligible and ineligible shareholders 17 November
Slide 8: Leadership Team
Leadership Team Chairman Managing Director Mark Carnegie, BA and a BSc (Hons) David Baker, BA, LL.B (Hons) For personal use only Mr Carnegie has more than 30 years’ experience as an entrepreneur, Mr Baker has extensive experience in commercial joint ventures, investor and corporate adviser in New Yo
Slide 9: Eastern Australian Gas Market: Substantial Opportunity
Eastern Australian Gas Market: Substantial Opportunity Prospective 2C Resource + Contingent Resource For personal use only Moomba 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 10: Southern Cooper Basin Gas Project: Strategic objectives
Southern Cooper Basin Gas Project: Strategic objectives Strike’s Southern Cooper Basin Gas Project (SCBGP) is a large scale onshore gas supply opportunity. The Company’s immediate objective is to demonstrate commercial gas flows which will be the key catalyst to commence project For personal use onl
Slide 11: Southern Cooper Basin Gas Project: Strike's Strategic Timeline
Southern Cooper Basin Gas Project: Strike’s Strategic Timeline Strategic objectives Timing For personal use only 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 12: Southern Cooper Basin Gas Project: Status
Southern Cooper Basin Gas Project: Status For personal use only Resource scale World class onshore gas resource – ideally located. Reservoir Favourable reservoir characteristics provide high confidence in future project scale and productivity. Pilot Production Project in PEL96 (STX 66.67% and operat
Slide 13: Southern Cooper Basin Gas Project: Forward activities
Southern Cooper Basin Gas Project: Forward 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: Southern Cooper Basin Gas Project
Southern Cooper Basin Gas Project For personal use only Strike controls the only new, large scale, onshore Eastern Australian gas project with the essential prerequisites for successful development. The significance of Strike’s commercial opportunity is accentuated by the current dynamics of the Eas
Slide 17: Eastern Australian Gas Market: year outlook
Eastern Australian Gas Market: 20 year outlook 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 Queensland,
Slide 18: Eastern Australian Gas Market: Supply tightness emerging
Eastern Australian Gas Market: Supply tightness emerging In the past two-years there has been nearly 3,000PJ* of downgrades to Eastern Australian onshore reserves and contingent resources. Low oil prices are exacerbating the supply outlook with minimal current investment in exploration or appraisal.
Slide 19: 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 20: 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 21: Investment Opportunity Summary
Investment Opportunity Summary For personal use only Favourable gas market dynamics, however, there are limited options for investors to directly participate in this opportunity Exposure to near-term value upside Successful project commercialisation will deliver enormous value Strike Energy Limited
Slide 22: 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 23: 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
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