Strike Energy Limited · ASX:STX
Strike Energy — Shareholder Meeting (November 2022)
35 slides from Strike Energy's shareholder meeting presentation, Nov 24, 2022
Slide 1: Chairman's AGM Address and MD Presentation
24th November 2022 ASX: STX The Company Announcement Officer ASX Ltd via electronic lodgement Chairman’s AGM Address and MD Presentation 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) today. • Chairman’s 2022 A
Slide 2: Chairman's 2022 Annual General Meeting Address
Chairman’s 2022 Annual General Meeting Address Ladies and Gentlemen, Firstly, I would like to acknowledge the Traditional Owners of the land on which we stand, along with the lands on which we conduct our activities in the Perth Basin, and pay respect to their Elders, past, present and emerging. I a
Slide 3: Chairman's address (continued)
The success that Strike has enjoyed this past year has been achieved through the great work of our staff, suppliers and contractors and I thank them all for their service and dedication to the company. I would also like to acknowledge the dedication and commitment of my fellow Board members who have
Slide 4: Strike Energy Limited Annual General Meeting November 2022
Strike Energy Limited Annual General Meeting November 2022 Strike’s 3,500ha proposed low carbon manufacturing precinct WA Low Carbon Fertiliser & Energy Developer 1
Slide 5: Cautionary note and disclaimer
Cautionary note and disclaimer Summary information This presentation contains summary information and statements about Strike Energy Limited (ASX:STX) (Strike), its subsidiaries and their respective activities and, amongst other things, the proposed merger between Strike and Warrego Energy Limited (
Slide 6: Strike's fully integrated net zero 2030 low carbon manufacturing & energy strategy
Strike’s fully integrated net zero 2030 - low carbon manufacturing & energy strategy Mid-West Low Carbon Manufacturing Precinct Project Haber Fertilisers Integrated Ammonia/Urea Wholesale Urea Gas Production Sales Dedicated Green Direct Urea Renewables Hydrogen Sales Geoscience Production Core compe
Slide 7: Commitment to our people & the environment
Commitment to our people & the environment Zero LTIs and significant environmental incidents 41% female employees increase of 17% on previous FY Well testing at SE1 ~80 mmscfd 4
Slide 8: Strike's sustainability journey
Strike’s sustainability journey 3,500 ha of farming land purchased to host vital infrastructure and avoid clearing native bushland Walyering facility designed to run off solar & battery exclusively CO₂ TCFD intensity of Strike’s upstream appraisal and testing activities have reporting Second year of
Slide 9: Company Update
Company Update 6
Slide 10: Strike's track record paving the path for future success
Strike’s track record paving the path for future success The Last 36-Months The Next 6-Months WE3 West Erregulla Discovery & Appr Maiden cashflows 4 successful discovery & appraisal wells Construction, commissioning and 118 PJ of WA domestic gas contracts1 Gross 455 PJ of 2P/C2 commencement of pro
Slide 11: The largest holder of Perth Basin Reserves & Resources
The largest holder of Perth Basin Reserves & Resources Strike Energy Limited Perth Basin Net Reserves & Resources, Independently Certified Mid West PJe, as at 21st November 2022 Lockyer Geothermal Waitsia West Erregulla 1,443 EP469 50% (STX 54%)2 2P: 422 PJ Beharra 2C: 30 PJ EP503 100% South Erregul
Slide 12: Value versus Reserves & Resources
Value versus Reserves & Resources Market Capitalisation versus Reserves & Resources Scale Various ASX Energy Companies, $mln / 2P+2C, as at 21 Nov-22 Strike has the second largest 2P O&G Reserves position for ASX listed energy 4,015 Conv Gas companies excluding the Australian Conv Oil majors. Unco
Slide 13: A path to the revaluation of Strike
A path to the revaluation of Strike EV/ 2P+2C Strike Share Price Performance Various ASX Energy Companies, A$/boe (21 Nov-22) $ per share, during current Management & Board tenure 0.4 11.6 Strike Producers Developers 10.7 0.3 8.2 7.7 6.4 0.2 6.1 6.0 5.9 +223% 0.1 1.8 1.7 1.6 1.6 1.1 1.1 0.0 0.3 2018
Slide 14: Rising value of Reserves & Resources
Rising value of Reserves & Resources STX Perth Basin Gas Position* Perth Basin Gas Position (net 2P Reserves & 2C Resources, PJe) (Listed Companies, existing net PJe & gross km²) 2P 2C Operated km2 11% 1,002 2,898 Non-Operated km2 26% 806 613 232 1,711 1,002 PJ 31% 667 574 227 27% 389 1,044 299 211
Slide 15: Drilling Resource Conversion
Drilling Resource Conversion Strike drill-bit strategy to add material new 2P Reserves Volumes are PJ estimates and subject to drilling and well test results Highly successful exploration 7 drilling over 2019-2022 has resulted in substantial low risk ? upside throughout the 853 portfolio. Updip
Slide 16: Perth Basin Consolidation
Perth Basin Consolidation WA Gas Prices & transactions multiples, $A GJ WA Spot Gas Price 6.10 WGO’s portfolio is currently 93% AWE 2P Sale Price undeveloped Reserves. AWE 2P+2C Sale Price BPT for WGO (2P) +64% WGO has endorsed a scheme that BPT for WGO (2P+2C) is interpreted to be at a ~50% dis
Slide 17: WA Gas Market
WA Gas Market 14
Slide 18: WA gas market
WA gas market WA (oil and gas) wells drilled per Under Investment 2P reserves write downs (PJe) Write Downs, Declines & Basin per year Exploration Failures 194 180 158 x x x 108 -84% 89 73 120 x 60 61 51 35 33 38 165 9 11 17 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 255 Roebuck Canning Bonaparte
Slide 19: WA domestic gas market 3 sellers 8 buyers
WA domestic gas market Who’s selling it today? Who’s buying it? Alinta Synergy /Horizon 10% Chevron Wesfarmers 20% 7% 19% Santos 45% 9% Yarra up to 1,200 TJ/d 7% Sino 19% 21% Woodside Alcoa 7% 3% South32 17% 16% BHP Other Other 3 sellers 8 buyers make up ~83% of the gas supply make up ~84% of the ma
Slide 20: Potential for gas growth in WA's power market
Potential for gas growth in WA’s power market WA Electricity generation by source / fuel type, 2021 Total market peak power consumption 4GW Solar 2% Wind 18% 42% Coal powered (official exit 2029), but reliability declining with WA possibly importing coal this summer and using diesel backup Gas 37% O
Slide 21: Gas Projects
Gas Projects 18
Slide 22: Walyering offers a low-cost development
Walyering offers a low-cost development that will deliver gas in a short WA market Independent Walyering Reserves & Resources1 Walyering-5 Walyering 75 mmscfd, 2,600psi WHP Gross, P50 PJ, RISC Advisory, STX interest 55% Plus 1.02 mmbbls condensate (2P/2C/2U) 102 8 bbls/mmscf of condensate STX 55
Slide 23: Optimising the Erregulla group of tier 1 assets
Optimising the Erregulla group of tier 1 assets Greater Erregulla Certainty & Approvals The recent acquisition of the Precinct offers Strike the opportunity to optimise the Erregulla development via: o Accelerated environmental approvals as approvals will no longer require clearance WE-3 of over 1
Slide 24: Perth Basin: Permian Gas Fairway
Perth Basin: Permian Gas Fairway Highly Productive Large Resources 1. Host some of the largest onshore conventional gas Lockyer discoveries in Australia. 2. Deep, high pressured reservoirs with excellent Waitsia W.Erregulla Erregulla permeability and high flow rates (up to 100 mmscfd). Deep Deepenin
Slide 25: Project Haber
Project Haber 22
Slide 26: Urea locally and abroad
Urea locally and abroad Australia’s urea consumption has grown And we made almost none of it here by 24% in 3 seasons 8% Imported +24% Domestic 2.5 2.6 * 2.1 2.5 mtpa 2020 2021 2022 92% * Full year estimate based on half year application whilst 1/3 of the world’s supply disappeared Urea is effective
Slide 27: Project Haber – Strike's transformation
Project Haber – Strike’s transformation Offtake Non-binding term sheet for 100% 1.4 mtpa low offtake for up to 15 years Internationally market linked pricing carbon urea plant AA+ credit rating Best in Class Technology Ammonia Urea Granulation Engineering & Construction Key Metrics1: F
Slide 28: Why fertilisers? Is the reward worth the effort?
Why fertilisers? Is the reward worth the effort? What are the benefits of moving down the Realised effective gas prices for Perth Basin value chain into fertilisers? gas and gas linked- products ($A per GJ RT22 as at Aug-22) $63 Access to global gas pricing Urea is a gas derivative, and its pricing
Slide 29: Carbon consumption & the hydrogen economy
Carbon consumption & the hydrogen economy Carbon (CO₂) Natural Gas Autothermal Urea Reforming (CH₄) (CH₄N₂O) Hydrogen Air Ammonia (H₂) (N₂) (NH₃) Haber-Bosch Process Mid West Green Hydrogen Proponents Hydrogen (H₂) Haber will be one of Australia’s largest carbon and hydrogen demand sinks 26
Slide 30: Project Haber's globally competitive fertiliser
Project Haber’s globally competitive fertiliser Estimated Project Haber urea cash cost Global urea cash cost curve build-up (FOB equivalent RT2020) Energy Other costs (FOB Geraldton Port, USD tonne as at 11th July 2022) 78 23 16 1 Project Haber est cash cost (FOB Gero) 33 6 Feedstock Opex and Gas Re
Slide 31: Project Haber – 1.4mtpa urea manufacturing facility
Project Haber – 1.4mtpa urea manufacturing facility Mid West Low Carbon Manufacturing Construction camp Precinct1 (~3,500 hectares) Project Haber Wind farm R&D grain farm Wind farm Solar plant Global urea net CO2 emissions curve relative to Project Haber (CO2e emissions per ton of urea equivalent, a
Slide 32: The Precinct's advantaged renewable location
The Precinct’s advantaged renewable location Northern section of the South West Interconnected System Plus Mid West wind farm locations Geraldton 1 st Walkaway Mumbida Dongara Three Springs The Precinct This bizarre natural phenomenon is caused by airborne salt Precinct location consistently blown i
Slide 33: A lot to look forward to in 2023
A lot to look forward to in 2023 Construction completion, commissioning and Strike’s first Walyering maiden free cashflows from the Walyering gas field in Q1/23 South Erregulla Resource to Reserve conversion, development Erregulla decision at the Company’s second tranche of domestic gas Completion o
Slide 34: Forward looking statements and project information
Forward looking statements and project information Forward looking statements This presentation contains forward looking statements about Strike and the Proposed Merger. Often, but not always, forward looking statements can be identified by the use of forward looking words such as “may”, “will”, “ex
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