Strike Energy Limited · ASX:STX
Strike Energy — Good Oil Conference 2012
22 slides from Strike Energy's conference presentation, Sep 5, 2012
Slide 1: Good Oil Conference Presentation
ASX Announcement Strike Energy Limited ABN 59 078 012 745 5 September 2012 For personal use only OUR FOCUS The Company Announcement Officer ASX Ltd • COOPER BASIN via electronic lodgement Over 1 million net acres with unconventional potential • EAGLE FORD SHALE GOOD OIL CONFERENCE PRESENTATION 10,00
Slide 2: Exposure to the World's Best Unconventional Plays
For personal use only EXPOSURE TO THE WORLD’S BEST UNCONVENTIONAL PLAYS – THE EAGLE FORD SHALE AND THE COOPER BASIN – GOOD OIL CONFERENCE 4 – 5 SEPTEMBER 2012
Slide 3: Contents
CONTENTS For personal use only STRIKE ENERGY EAGLE FORD SHALE SOUTHERN COOPER BASIN CARNARVON BASIN PRODUCING ASSETS Page 1
Slide 4: Strike Energy
For personal use only STRIKE ENERGY SUBSTANTIAL EXPOSURE TO THE UNCONVENTIONAL OIL & GAS SECTOR Page 2
Slide 5: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only EAGLE FORD SHALE SOUTHERN COOPER BASIN ~10,000 (net) acres in the gas- Over one million net acres with QUALITY ASSETS condensate fairway unconventional potential 35 – 45 million boe (net) 6+ Tcf (net) prospective gas LARGE RESOURCE resource potential resou
Slide 6: Company Overview
COMPANY OVERVIEW For personal use only SNAPSHOT (31 AUGUST 2012) NEAR TERM VALUE DRIVERS Corporate office Sydney, Australia • Eagle Ford Shale production test US operations base Houston, USA • Carnarvon Basin Palta prospect drilling David Wrench – Managing Director Key management Ben Thomas – Presid
Slide 7: Key Unconventional Assets
KEY UNCONVENTIONAL ASSETS For personal use only EAGLE FORD SHALE SOUTHERN COOPER BASIN Eagle Ford Shale Trend Oil Fairway STRIKE’S LEASE AREA Gas Condensate Fairway Gas Fairway Strike’s Lease Area DAVENPORT 1 MARSDEN 1 ~36,250 (gross) / ~10,000 (net) acres in the Eagle Ford 16,000 km2 / 4 million ac
Slide 8: Active Exploration and Development Program
ACTIVE EXPLORATION AND DEVELOPMENT PROGRAM For personal use only 2012/13 KEY DEVELOPMENT OBJECTIVES • EAGLE FORD SHALE – demonstrate commercial production over a broad expanse of Strike’s lease area • SOUTHERN COOPER BASIN – flow test hydrocarbons from coal and shale formations Sep Oct Nov Dec Jan F
Slide 9: Leverage to the USA's Premier Unconventional Liquids Play
For personal use only THE EAGLE FORD SHALE LEVERAGE TO THE USA’S PREMIER UNCONVENTIONAL LIQUIDS PLAY Page 7
Slide 10: USA's Premier Unconventional Liquids Play
USA’S PREMIER UNCONVENTIONAL LIQUIDS PLAY For personal use only THE EAGLE FORD SHALE TREND LIQUIDS RICH • Eagle Ford Shale produces high-value oil and condensate • Over-pressured formations generate strong flow rates • Superior economics to dry gas plays HEIGHTENED ACTIVITY • Over 2,800 drilling per
Slide 11: Strike About to Commence Production
STRIKE ABOUT TO COMMENCE PRODUCTION For personal use only BIGHAM 1H DRILLED, CASED, AWAITING FRAC STRIKE’S LEASE AREA • Fracture stimulation and completion operations on track • Production testing to follow REGIONAL DE-RISKING UNDERWAY • Strong production rates from nearby wells have de-risked the r
Slide 12: Value Creation Strategy
VALUE CREATION STRATEGY For personal use only EARLY PRODUCTION DEVELOPMENT VALUE CURVE • Bigham 1H to demonstrate production potential of Upper Eagle Ford formation • Production well #2 to demonstrate production potential of Lower Eagle Ford formation • Subsequent wells to optimise well performance
Slide 13: Southern Cooper Basin
For personal use only SOUTHERN COOPER BASIN A LARGE POSITION WITHIN AUSTRALIA’S LEADING UNCONVENTIONAL PLAY Page 11
Slide 14: Australia's Most Prospective Unconventional Region
AUSTRALIA’S MOST PROSPECTIVE UNCONVENTIONAL REGION For personal use only FORECAST AUSTRALIA GAS CONSUMPTION GAS DEMAND FORECAST TO TRIPLE BY 2016 + 2,500 PJ/a + 1,700 PJ/a • Demand from Queensland LNG plants under construction To be sourced To be sourced plus increased role for gas in the clean ener
Slide 15: World-Scale Resource Potential
WORLD-SCALE RESOURCE POTENTIAL For personal use only STRIKE’S KEY UNCONVENTIONAL PERMITS VERY LARGE PERMIT AREA ~4,600 km2 (one million acres) prospective for unconventional exploration PERMIT INTEREST OPERATOR SIZE (km2 net) PEL 96 67% Strike 2,707 DAVENPORT 1 PEL 95 50% Beach Energy 1,291 PEL 94 3
Slide 16: Davenport Area – A Unique CSG Opportunity
DAVENPORT AREA – A UNIQUE CSG OPPORTUNITY For personal use only PEL 94 – DAVENPORT AREA DEEP COAL SEAM GAS • Coal seams at 1,600 to 2,000 metres, BUT…. • EXCEPTIONAL NET COAL THICKNESS – FOUR OR FIVE TIMES SHALLOW CSG 50 • VERY HIGH GAS CONTENTS – DOUBLE OR TRIPLE SHALLOW CSG 40 • About 5 kilometres
Slide 17: Value Creation Strategy
VALUE CREATION STRATEGY For personal use only CONFIRM RESOURCE POTENTIAL • Evaluation drilling has confirmed coal and shale thicknesses UNCONVENTIONAL ACREAGE & CAPITALISATION v PEERS • Existing seismic shows formations extend across wide area • Lab analysis has confirmed encouraging hydrocarbon con
Slide 18: Carnarvon Basin
For personal use only CARNARVON BASIN OPTION VALUE FROM UPCOMING PALTA DRILLING Page 16
Slide 19: Large Prospect to be Drilled by Shell
LARGE PROSPECT TO BE DRILLED BY SHELL For personal use only CARNARVON BASIN – PALTA PROSPECT (WA 460 P) CARNARVON BASIN PERMITS • Five permits – 1,200 km2 (net) • Four operated by Strike • High working interests – average 44% PALTA PROSPECT • 13.5 Tcf gas-in-place estimated by Strike • Approximately
Slide 20: Producing Assets
For personal use only PRODUCING ASSETS CASHFLOW FROM CONVENTIONAL PRODUCTION Page 18
Slide 21: Conventional Production, with Upside
CONVENTIONAL PRODUCTION, WITH UPSIDE For personal use only PERMIAN BASIN, TEXAS LOUISE FIELD, TEXAS (Eaglewood Joint Venture) Production (2011/12) 7,135 Boe (7 months) 680 MMcfe Revenues (2012/13 F) ~$1 million ~$3.5 million Reserves (30 June 2012) 344,000 Boe 3.9 bcfe Recent activity Acquired Novem
Slide 22: Important Notice
IMPORTANT NOTICE For personal use only IMPORTANT NOTICE 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 shou