Strike Energy Limited · ASX:STX

Strike Energy — Strike Oil — Shareholder Meeting (November 2009)

25 slides from Strike Energy's shareholder meeting presentation, Nov 17, 2009

  1. Slide 1: Chairman's Address and AGM Presentation

    Strike Oil Limited ABN 59 078 012 745 17 November 2009 For personal use only The Company Announcement Officer Australian Securities Exchange via electronic lodgement CHAIRMAN’S ADDRESS AND AGM PRESENTATION Please find attached: 1. the Chairman’s address; and 2. Presentation to be given at the Compan

  2. Slide 2: Strike Oil AGM Chairman's Address

    STRIKE OIL AGM CHAIRMAN’S ADDRESS Let me again welcome you to Strike Oil’s 2009 Annual General Meeting. I don’t need to tell you that this past year has had its challenges. This has been true for For personal use only individual shareholders and Corporations generally. Strike Oil has been no excepti

  3. Slide 3: Chairman's Address: Growth Opportunities

    The first of these opportunities is the ability to substantially grow our gas and oil business in the onshore Gulf Coast in the United States. We continue to have confidence in the high quality of the technical work undertaken by Cypress E & P as Operator, and continue to be excited with the quality

  4. Slide 4: High Margin Producer – Major Growth Potential

    For personal use only HIGH MARGIN PRODUCER – MAJOR GROWTH POTENTIAL Annual General Meeting November 2009

  5. Slide 5: Disclaimer

    DISCLAIMER For personal use only 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 should not be placed on the

  6. Slide 6: The Portfolio

    Major new energy opportunities THE PORTFOLIO Company changing potential For personal use only Gas/condensate production - large scale discovery potential CSG opportunities - major project potential Large tonnage coal resource - conventional gasification Conventional oil exploration - expanding oppor

  7. Slide 7: Corporate Snapshot

    Corporate Snapshot THE COMPANY Capital Structure (16 November 2009) Directors and Management For personal use only Shares on issue (ASX: STX) million 328.6 Chairman Jeffrey Schneider Options on issue million 14.5 Managing Director Simon Ashton Current share price A$ 0.28 Non Exec Director Tim Clifto

  8. Slide 8: Investment Proposition: Why Invest in Strike?

    INVESTMENT Why invest in Strike? PROPOSITION For personal use only 1. High margin production – generating substantial cashflow  One of the most successful ASX listed Gulf Coast explorers  10 producing gas/oil-condensate wells onshore US Gulf Coast – 9.2 Bcfe (1P Reserves)  Growing exploration inv

  9. Slide 9: High Margin Producer

    High margin producer US ONSHORE GULF COAST For personal use only Production and Financial Performance: 2009 Financial Year Result YoY change Gas production 3.33 Bcf 185% Oil production 81,836 bbl 222% Production revenue $36.4 million 128% Gross margin 71% 1% EBITDAX (STX) $24.8 million 125% Net prof

  10. Slide 10: Major Gas Discoveries

    Major gas discoveries US ONSHORE GULF COAST For personal use only TWO PRODUCING FIELDS: Rayburn/Mesquite (gross est. ultimate recovery: 71 Bcfe) CURRENT RESERVES  Primarily Middle Wilcox  Total proved: 41.5 Bcfe (June 09):  STX share: 9.2 Bcfe ADDITIONAL PROSPECTIVE RESOURCE  Potential pay zones

  11. Slide 11: First Class Exploration Opportunity

    First class exploration opportunity US ONSHORE GULF COAST For personal use only RECORD TO DATE – RAYBURN AND MESQUITE  Tested targets with gross 200 Bcf pre-drill potential  Result: 71 Bcfe delivered into 1P reserves to date (estimated ultimate recovery) TARGETS – BEYOND RAYBURN AND MESQUITE  660

  12. Slide 12: A Great Place to Find Oil and Gas

    A great place to find oil and gas US ONSHORE GULF COAST For personal use only  Vast petroleum infrastructure  Ready access to market (discovery to sales – 2 months!)  US gas pricing premium 8

  13. Slide 13: A Pipeline of Large Scale Energy Opportunities

    A pipeline of large scale energy opportunities AUSTRALIAN PROJECTS For personal use only CONVENTIONAL NON-CONVENTIONAL OFFSHORE OIL (GAS) COAL SEAM GAS Baniyas: Southern Cooper: STX 40%, Operator STX 66.7%, Operator Oil case potential:  CSG prospective in-situ resource  9 - 47 million boe (Gross P

  14. Slide 14: Unique Large Scale Coal Seam Gas Opportunity

    Unique large scale Coal Seam Gas opportunity SOUTHERN COOPER For personal use only LARGE SCALE  Shallowest extensive Cooper Basin Permian coals (1000 metres and deeper)  Gross 7,000-19,000 PJ prospective gas resource (5,000 - 12,000 PJ Strike’s interest) PIPELINE TO MARKET IN PLACE - LOW UPFRONT C

  15. Slide 15: Extensive Coal Seams

    Extensive coal seams SOUTHERN COOPER For personal use only  Thick coal seam mapped over 1,450km2 - based on past oil exploration wells and seismic  Individual seams up to 18 metres thick PEL 96 Boundary 11

  16. Slide 16: Capital and Market Access Advantage

    Capital and market access advantage SOUTHERN COOPER For personal use only Conceptual cash flows CSG Project with market and infrastructure access (Strike Oil’s Southern Cooper Project) + Typical Queensland CSG $ Project with no immediate infrastructure and market access Epic Energy Pipeline - Compre

  17. Slide 17: CSG Evaluation Program – Short Term

    CSG evaluation program - short term SOUTHERN COOPER For personal use only 2010 Jan Feb Mar Apr May Jun Jul Drilling core holes CSG - coal and gas evaluation CSG - pilot design UCG - preliminary evaluation 13

  18. Slide 18: Major Strategically Located Coal Resource

    Major strategically located coal resource FUTURGAS For personal use only RESOURCE  578 Million tonnes JORC compliant lignite resource*  Conventional open cut mine TECHNOLOGY  Combustion and gasification of lignite confirmed  Utilises established Surface Coal Gasification (SCG) and downstream tec

  19. Slide 19: Conventional Oil and Gas – Carnarvon Basin

    Conventional oil and gas CARNARVON BASIN For personal use only BANIYAS  One of the best shallow water prospects in the Carnarvon Basin  47 million barrels of oil equivalent (boe) potential  STX 40% share; 19 million boe potential  Consolidating title position over entire structure 15

  20. Slide 20: The Scale of the Growth Opportunity

    The scale of the growth opportunity CURRENT POSITION For personal use only Resource Potential Region Project Scale Project Life Status (Strike’s share) US Gulf Coast Rayburn and Mesquite 36.5 Bcfe +10 years Progressive field (Current 9.2Bcfe 1P Prospective Resource development Reserves) Beyond Raybu

  21. Slide 21: Short Term Value Potential

    Short term value potential CURRENT POSITION For personal use only POTENTIAL VALUE NET CASH A$10 million USA PRODUCTION • NPV of current USA production (@ 10-15% discount rate and current Nymex price deck) $155-220 million Market capitalisation USA EXPLORATION • 200 Bcf potential risked @ 30% = appro

  22. Slide 22: CSG Value Growth

    CSG value growth CURRENT POSITION Strike Oil and ASX “CSG players” enterprise value comparison For personal use only Producer 30 October 2009* $1,000,000,000 3.2 b 3.1 bn $900,000,000 Pilots producing $800,000,000 $700,000,000 Enterprise Value $600,000,000 $500,000,000 Coreholes planned, pilot $400,

  23. Slide 23: Strategy – To Transform the Company

    Strategy – to transform the company CURRENT POSITION For personal use only Spend to Asset Strategy Action Jun 2010 High margin cashflow Growth through exploration Drilling starts Jan 2010 $5.1m Large potential CSG/UCG resource Prove up through drilling Drilling starts Jan 2010 $3.0m Large lignite re

  24. Slide 24: Drilling Schedule

    TRANSFORMATIONAL Drilling schedule POTENTIAL For personal use only Indicative drilling schedule 2010 Jan Feb Mar Apr May Jun US Onshore Gulf Coast Southern Cooper Basin US drilling could double - triple US reserves within 6 months Southern Cooper holds immediate potential to elevate Strike to a majo

  25. Slide 25: JORC Compliance Statement – FuturGas Resource

    www.strikeoil.com.au ASX Code: STX For personal use only JORC COMPLIANCE STATEMENT – FUTURGAS RESOURCE The FuturGas coal resources presented in this report are located at Kingston South Australia and have been classified and reported in accordance with the JORC code. The JORC resource estimate is co

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