Strike Energy Limited · ASX:STX

Strike Energy — Strike Oil — South Australia Future Energy Conference 2009

32 slides from Strike Energy's conference presentation, Aug 17, 2009

  1. Slide 1: South Australia Future Energy Conference Presentation (ASX cover letter)

    Strike Oil Limited ABN 59 078 012 745 17 August 2009 The Company Announcements Officer Australian Securities Exchange Limited via electronic lodgement OUR STRENGTHS SOUTH AUSTRALIA FUTURE ENERGY CONFERENCE PRESENTATION High margin producer Please find attached a presentation to be made by Simon Asht

  2. Slide 2: Realising the energy potential within South Australia's CSG and CTL resources

    REALISING THE ENERGY POTENTIAL WITHIN SOUTH AUSTRALIA’S COAL SEAM GAS AND COAL TO LIQUIDS RESOURCES August 2009 South Australia Future Energy Conference 17-18 August 2009 - Hilton Adelaide

  3. Slide 3: Disclaimer

    DISCLAIMER 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 information or opinio

  4. Slide 4: The Company: US cash flow funding Australian and US growth

    US cash flow funding Australian and US growth THE COMPANY A successful oil and gas explorer and producer with operations focussed on the most productive basins in the USA and Australia  Conventional offshore oil and gas exploration  Conventional onshore gas production and exploration  Non-convent

  5. Slide 5: Track record of success

    Track record of success THE COMPANY 1996 – Commenced exploration activities as private E&P company 2003 – Discovery of Casino gas field (Otway Basin): 250 Bcf 2003 – Casino sold and funds returned to shareholders 2004 – Comet Ridge; multi Tcf CSG play – capital return to shareholders 2004 – Strike O

  6. Slide 6: Two state significant energy sources

    SOUTH AUSTRALIA Two state significant energy sources FOCUS SOUTHERN COOPER PROJECT  Coal Seam Gas (CSG): 8,000 – 20,000 PJ potential  Underground Coal Gasification (UCG): 20,000 barrels per day FUTURGAS PROJECT  Coal to Liquids (CTL) and power: • 10,000 barrels per day • 40 MW electricity  Other

  7. Slide 7: Strategic multi-product energy resource (Southern Cooper)

    Strategic multi-product energy resource SOUTHERN COOPER PROJECT  Very large coal resource delineated by seismic and oilfield drilling  Gas, oil and synthetic fuels (CSG and UCG) potential  Initial focus is CSG  Strike Oil is the operator of the project with a 66⅔% Working Interest  Potential to

  8. Slide 8: Major strategically located CSG potential

    Major strategically located CSG potential SOUTHERN COOPER PROJECT LARGE SCALE  Shallowest Cooper Basin Permian coals  Gross 8,000-20,000 PJ prospective gas resource (5,000 - 13,000 PJ Strike’s interest) PIPELINE TO MARKET IN PLACE - LOW UPFRONT CAPEX  Epic Energy Moomba to Adelaide pipeline cross

  9. Slide 9: Extensive thick coals

    SOUTHERN COOPER Extensive thick coals PROJECT Based on past oil exploration wells and seismic data interpretation 100 km

  10. Slide 10: Key attributes of a CSG project

    Key attributes of a CSG project SOUTHERN COOPER PROJECT Numerous coal seams up to 18 metres thick. Composite thickness Thick coal seams up to 80 metres Laterally extensive 1,800 sq km (or 450,000 acres) in PEL 96 coal seams Attributes Coal intersections from 1,000 metres to 1,800 metres (potential a

  11. Slide 11: Coal proven in existing wells

    SOUTHERN COOPER Coal proven in existing wells PROJECT Multiple coal well intersections ‐ Composite thickness up to 80 metres Tinga Tingana 1 Weena 1

  12. Slide 12: Extensive coal distribution shown by seismic

    Extensive coal distribution shown by seismic SOUTHERN COOPER PROJECT Bright amplitude = coal B

  13. Slide 13: Favourable scoping economics

    SOUTHERN COOPER Favourable scoping economics PROJECT LOW UPFRONT CAPEX AND POTENTIAL GAS SALES WITHIN 2 YEARS  Up to 150 TJ/day capacity available at Epic Energy Moomba to Adelaide pipeline  Ready access to domestic Eastern States market: • direct sales or • gas swaps  “Immediate” gas sales path

  14. Slide 14: Evaluation program

    SOUTHERN COOPER Evaluation program PROJECT CSG RESOURCE EVALUATION  2009/10: 3 well drilling program to determine contingent resource  2010/11: Pilot program to determine reserves DEVELOPMENT  2011/12: Production drilling to upgrade and increase reserves and to meet sales contracts FIRST SALES 

  15. Slide 15: Gas markets

    SOUTHERN COOPER Gas markets PROJECT DOMESTIC GAS MARKETS  Southern Cooper CSG well located to supply the broader Eastern States market  Cooper Basin serviced by gas pipelines to SA, NSW, QLD LNG MARKET  Potential to underwrite 1-2 train LNG project out of SA

  16. Slide 16: Summary – Large scale CSG energy potential for South Australia

    Summary – Large scale CSG energy potential SOUTHERN COOPER for South Australia PROJECT  A project to open up the CSG potential of the Cooper Basin  Also UCG potential – initial evaluation underway  Low upfront Capex and early cash flow due to in-situ pipeline access to domestic markets  CSG rese

  17. Slide 17: Strategic multi-product energy resource (FuturGas)

    FUTURGAS Strategic multi-product energy resource PROJECT  Multi product potential: CTL (diesel/naptha), Ammonia (fertiliser), Methanol, Power  Large coal resource delineated by extensive drilling  Positive combustion and gasification tests complete  Excellent access to infrastructure and markets

  18. Slide 18: Multi-product options

    FUTURGAS Multi-product options PROJECT SCOPING STUDIES DEMONSTRATE MANY OPTIONS Products Annual Production Lignite Mined (million tonnes/annum) CTL/Liquid Fuels/Chemicals/Power 3.6 million barrels and 150 MW 3.6 Ammonia/Power 0.58 million tonnes and 123 MW 2.4 Methanol/Power 0.7 million tonnes and 1

  19. Slide 19: Key attributes - CTL

    FUTURGAS Key attributes - CTL PROJECT Technology  Combustion and gasification of lignite confirmed  Utilises established CTL technology Resouce  578 Million tonnes JORC compliant lignite resource Financial  Produces 10,000 barrels per day of liquid fuels, 40MW of low emissions electricity for ex

  20. Slide 20: Why CTL?

    FUTURGAS Why CTL? PROJECT  Stranded lignite deposits transformed to high-value “CTL..will be very important… liquid fuels in the context of …securing Australia’s energy future.”  Utilises commercially proven technology  Produces ultra-clean transport fuel  Provides the least cost alternative for

  21. Slide 21: CTL – commercially proven technology

    FUTURGAS CTL – commercially proven technology PROJECT  Supplies 30% of South Africa’s petroleum requirements  In commercial use for 50 years (SASOL)  Converting coal to syngas provides final product flexibility

  22. Slide 22: Competitive position - strategic location

    FUTURGAS Competitive position - strategic location PROJECT LOW TRANSPORT AND INFRASTRUCTURE COSTS  Close to major road and rail transport facilities for liquid fuel distribution  Access to refining options for sale of naphtha in Victoria and NSW  Within 25km of major high voltage transmission lin

  23. Slide 23: Competitive position - confirmed resource

    FUTURGAS Competitive position - confirmed resource PROJECT MAJOR CONFIRMED COAL RESOURCE  JORC compliant 578 million tonne measured and indicated resource - potential to 1 billion tonnes  Comprehensively mapped and drilled in the 1980’s (550 bore holes) • Cost $50 million in today’s dollars • adva

  24. Slide 24: Gasification - access to knowledge and testing

    FUTURGAS Gasification - access to knowledge and testing PROJECT  Agreement with Adelaide Research and Innovation* • access to 14 years of CRC** intellectual property • program to confirm coal gasification characteristics  High reactivity of Kingston lignite ideal for gasification (more reactive th

  25. Slide 25: Successful combustion testing

    FUTURGAS Successful combustion testing PROJECT KINGSTON COAL WELL UNDERSTOOD  1980’s - WMC Limited demonstrated suitability for Pulverised Fuel (Pf) Combustion • Issue - Need for flue-gas de-sulpurisation to control SO2 emissions  2008 - University of Adelaide demonstrated Circulating Fluid Bed Co

  26. Slide 26: Gasification program - CFBC gasifier selected

    FUTURGAS Gasification program - CBFC gasifier selected PROJECT  Gasification options study completed - built on nearly 40 years combustion and gasification experience  All gasifier types considered  CFBC gasification chosen: • uses inherent moisture in the coal for hydrogen formation - only limit

  27. Slide 27: Gasification testing - good quality gas produced

    FUTURGAS Gasification testing - good quality gas produced PROJECT  Air blown gasification process  75 mm diameter CFBC reactor used  No difficulties experienced with bed agglomeration: • very high carbon conversion achieved for such a small reactor (> 85%) • good quality gas produced  Further se

  28. Slide 28: Carbon capture and storage

    FUTURGAS Carbon capture and storage PROJECT “Most CTL projects will be  Geosequestration (storage) to be developed dependent on carbon capture coincident with FuturGas Project and storage”  Gasification provides least-cost alternative for capturing CO 2  Potential to store 1.6 m tonnes of CO per

  29. Slide 29: Path to production

    Path to production FuturGas Project Feasibility study and approvals  2009 to 2011 Pilot  2012 to 2013 Development  2014 to 2015 Production Access to multiple refineries and markets  2016 onwards

  30. Slide 30: Summary - large scale CTL and other energy potential for South Australia

    Summary - large scale CTL and other energy potential for South Australia FuturGas Project  Close to infrastructure and market access  Established technology and scope for SA to be leader in development  Coal resource tested favourably for combustion and gasification  Potential to add security an

  31. Slide 31: Two SA state significant projects: Summary

    Two SA state significant projects Summary Security and diversity of supply  Gas,  Liquid fuels,  Ammonia,  Methanol  Power Technology advancements  CSG, UCG  CTL Regional development  Northern South Australia  South East South Australia Major growth potential for Strike Oil in South Austral

  32. Slide 32: JORC compliance statement – FuturGas resource

    www.strikeoil.com.au ASX Code: STX 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 comprised of 523.5 milli

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