For personal use only

Transcription

1 ASX Announcement 21 May 2013 The Company Announcement Officer ASX Ltd via electronic lodgement RBC CAPITAL MARKETS MINI COOPER CONFERENCE Please find attached a presentation to be made by David Wrench at the RBC Capital Markets Mini Cooper Conference in Sydney this morning. Yours faithfully DAVID WRENCH Managing Director Further information: Strike Energy Limited David Wrench Managing Director T: E: strike@strikeenergy.com.au Strike Energy Limited ABN P: L9, 71 Walker Street, North Sydney NSW

2 STRIKE ENERGY LTD RBC MINI COOPER CONFERENCE 21 May

3 Strike Energy Ltd Strike Energy Overview Unconventional Resource Development Considerations Strike Energy s Southern Cooper Basin Gas Project Eagle Ford Shale Carnarvon Basin 2

4 Strike Energy Overview - Southern Cooper Basin Gas Project 1.55 million gross acres / 927,037 net acres Estimated recoverable prospective gas resource 6-16 Tcf net to Strike For personal use only S E COOPER BASIN E To Brisbane Direct pipeline access Moomba Rapid appraisal and development timeline Strzelecki Track Marsden 1 PEL 95 Davenport 1 PEL 94 To Sydney S SA QLD NSW PEL 96 Strike Wells Strike Permits Oil Field Gas Field Gas Pipeline Oil Pipeline Coal Troughs STX-M /4/13 To Adelaide km 3

5 Strike Energy Overview - Eagle Ford Shale 38,850 acre Joint Venture lease position 10,680 acres net to Strike Substantial resource potential TEXAS Recent on-trend results from offset operators are de-risking the play Strike s Lease Area Austin Houston San Antonio Strike s Lease Area Country border MEXICO Eagle Ford Shale Trend Oil Fairway Gas Condensate Fairway Gas Fairway miles STX-M /3/ km 4

6 Company Overview Listing ASX (ticker STX) Issued Shares 614,519,664 Unlisted Options 21,175,000 Market Capitalisation ~$55 million Production (2012/13F) ~110,000 Boe Revenue (2012/13F) ~ A$4.5 million 5

7 UNCONVENTIONAL RESOURCE DEVELOPMENT CONSIDERATIONS GO TO THE SOURCE

8 Conditions for Successful Unconventional Development Established, prolific hydrocarbon basin Active hydrocarbon generation source capable of acting as a reservoir within basin High product price environment Infrastructure availability Cost competitive drilling and completion services Product sales infrastructure Favourable land access and environmental conditions, stable regulatory regime 7

9 Potential for Unconventional Success ~ A Basin Comparison Eagle Ford Surat Basin Cooper Basin (tight Sands) Southern Cooper Basin Coals Prolific Basin Primary Source Rock Marine Shale Coal Coal Coal Primary Hydrocarbon Products Oil / gas /condensate Gas Gas Gas High Product Pricing Cost Competitive Drilling & Completion Services Sales Infrastructure Land Access Regulatory Regime 1 76% of Cooper Basin unconventional frac stages (completed to date) have targeted tight sands 8

10 STRIKE S SOUTHERN COOPER BASIN GAS PROJECT LEVERAGE TO EASTERN AUSTRALIA S GAS MARKET

11 Southern Cooper Basin Gas Project Rapid transition to demand driven gas market in Eastern Australia +1,700 PJ/annum will need to be produced for domestic and export markets Urgent reuirement for a supply response at acceptable pricing Mount Isa Strike s project is uniquely placed to meet this demand Gladstone Moomba Brisbane Adelaide Sydney Melbourne km Hobart 10

12 Southern Cooper Basin Gas Project Multi-Tcf gas resource Targeting coals For personal use only E COOPER BASIN Marsden 1 The primary source rock in the basin; Thickest and shallowest Permian coals found in the Cooper Basin Davenport 1 PEL 94 Cost competitive PEL 95 Shallow, low cost drilling S Straight forward land access Existing Wells Direct access to east coast markets via existing pipelines A compelling gas resource play PEL 96 Strzelecki Track Proposed Wells Strike Permits Gas Pipeline Oil Pipeline Milpera Trough Larow Trough Battunga Trough Weena Trough KM STX-M /4/13 11

13 Commercialisation Pathway Appraisal 3 wells PEL 96 Flow-testing Proof of Concept Production pilots Technology trials FEED Development Production drilling Modular facilities Pipelines Davenport frac Discovery Davenport & Marsden Thick gas saturated coals 1500m m depth window 12

14 PEL 96 Phase 1 Area - Development Concept PEL 96 Phase 1 Area <10km from the MAP corridor; For personal use only E Davenport PJ resource Pad drilling development concept PEL 94 PEL 95 COOPER BASIN Five deviated wells per pad Three zones completed Well B Well A Well C Target ex-field cost around $3.00/GJ excluding royalites PEL 96 Strzelecki Track Strike Wells Proposed Wells Offset Wells Strike Permits Gas Pipeline Oil Pipeline STX-M-003 8/5/ KM 13

15 PEL 96 Phase 1 Area - Development Concept Fairview CSG field analogue Depths metres Net coal thickness metres PEL 96 Phase 1 Area Depths metres Net coal thickness average 50 metres 14

16 THE EAGLE FORD SHALE LEVERAGE TO USA S PREMIER UNCONVENTIONAL LIQUIDS PLAY

17 Eagle Ford Shale: Overview Strike holds 27.5% (10,680 net acres) in the Cypress Eagle Ford Shale project, located in Lavaca and Fayette counties, Texas Favourable positioning on-trend with highly productive fields in Lavaca and Dewitt counties in the optimum gas-condensate window Extensive leasing and increasing production rates from wells adjacent to Strike s acreage have demonstrated north-eastern extension of the Eagle Ford Shale trend Strike Energy 16

18 Eagle Ford Shale: Recent Operator Activity Recent drilling and commercial production results have demonstrated the north-eastern extension of the Eagle Ford Shale trend. Commercial production rates have been achieved by Penn Virginia (PVA), Magnum Hunter Resources and Sabine Oil & Gas in Lavaca County and Sanchez Energy in Fayette County. Fayette Variability of initial flow rates and estimated ultimate recoveries appear correlated to trend window and completion horizon. Gonzales Bigham 1H 1,500 1,503 Average Well Results IP (Boe/d) 30 day Avg (Boe/d) Lavaca 1, ,201 Recent notable PVA wells: Othold 1H - IP 1,629 Boe/d Martinsen 1H - IP 1,878 Boe/d Dewitt Magnum Hunter Acreage acquired by PVA - April 2013 Penn Virginia Sanchez Sabine 10 Miles Magnum Hunter (22 wells) Pem Virginia (15 wells) Sabine (3 wells) Sanchez (3 wells) 17

19 CARNARVON BASIN

20 Carnarvon Basin Carnarvon Basin permits For personal use only Five permits km 2 (net) E Four operated by Strike High working interests - average 44% Palta prospect 13.5 Tcf gas-in-place estimated by Strike Approx 20% (~2.5 Tcf) prospect mapped in WA-46-P - Strike 33% S WA-460-P (Strike) Prospect Location Palta 1 Well Exmouth Palta 1 spudded by Shell (October 2012) in adjacent WA-384-P No cost to Strike WA-384-P (Shell) W A STX-M /3/ km 19

21 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 should not be placed on the information or opinions contained in this presentation. This presentation does not take into consideration the investment objectives, financial situation or particular needs of any particular investor. Any decision to purchase or subscribe for any shares in Strike Energy Limited should only be made after making independent enquiries and seeking appropriate financial advice. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, Strike Energy Limited and its affiliates and related bodies corporate, and their respective officers, directors, employees and agents disclaim liability (including without limitation, any liability arising from fault or negligence) for any loss arising from any use of or reliance on this presentation or its contents or otherwise arising in connection with it. Statements contained in this presentation, including but not limited to those regarding the possible or assumed future costs, performance, dividends, returns, production levels or rates, oil and gas prices, reserves, potential growth of Strike Energy Limited, industry growth or other projections and any estimated company earnings are or may be forward looking statements. Such statements relate to future events and expectations and as such involve known and unknown risk and uncertainties, many of which are outside the control of Strike Energy Limited. Actual results, actions and developments may differ materially from those expressed or implied by the statements in this presentation. Subject to any continuing obligations under applicable law and the Listing Rules of ASX Limited, Strike Energy Limited does not undertake any obligation to publicly update or revise any of the forward looking statements in this presentation or any changes in events, conditions or circumstances on which any such statement is based. COMPETENT PERSONS STATEMENT The reported reserves in this presentation are based on information compiled by Mr. Ben A Thomas. Mr. Thomas is the Manager of Strike s US operations and has consented to the inclusion of the reserves information in this report. Mr. Thomas holds a B.Sc in Petroleum Engineering. He is a member of the Society of Petroleum Engineers and has worked in the petroleum industry as a practicing reservoir engineer for over 40 years. 20