ASX Announcement

16 July 2013

The Company Announcement Officer

ASX Ltd
via electronic lodgement

SOUTHERN COOPER BASIN GAS PROJECT

INVESTOR PRESENTATION
In conjunction with today’s gas supply agreement announcement, Strike Energy Limited (“Strike”
ASX:STX) is pleased to provide shareholders with a comprehensive presentation on the company’s
Southern Cooper Basin Gas Project.

Managing Director, David Wrench said:

“The Company has made substantial progress with our Southern Cooper Basin Gas Project and is now
well positioned to accelerate evaluation activities. The potential value inherent in this project is
rapidly being acknowledged by an expanding number of industry stakeholders.”

Yours faithfully

DAVID WRENCH
Managing Director

Further information:
Strike Energy Limited
David Wrench – Managing Director
T: +61 2 8261 1000
E: strike@strikeenergy.com.au

Strike Energy Limited ABN 59 078 012 745 P: +61 2 8261 1000 L9, 71 Walker Street, North Sydney NSW 2060 www.strikeenergy.com.au
STRIKE ENERGY LIMITED
THE SOUTHERN COOPER BASIN GAS PROJECT
Investor Presentation

July 2013
Executive Summary

• resource target is gas saturated Southern Cooper coals

Significant gas
resource • Strike’s prospective resource between 6.3 and 16.4 Tcf
• favourable market dynamics

• characteristics of coals demonstrate potential for a compelling resource play

Potentially
favourable • shallower coal seam targets differ significantly from basin centred gas and shale plays in deeper part of basin
economics
• targeting very competitive position on supply cost curve (target ex-field cost ~$3.00/GJ excluding royalties)

• rapid appraisal time

Rapid appraisal
and development • low appraisal capital to mature resource
• foundation customer contribution to appraisal and initial development expenditure

• binding term sheet for up to 150PJ of gas (20 year supply) signed with foundation customer (Orica)
Commercialisation
pathway • ideal project location with access to pipelines connected to east coast gas network
• potential for much larger development with tremendous economic value

Strike Energy Limited - The Southern Cooper Basin Gas Project | Investor Presentation 2
Overview

North America has experienced an unconventional gas revolution over the past decade. The global focus on unconventional is the supply response
to both higher gas demand and higher prices.
LNG to export markets

US Australia

Driver Unconventional gas supplies Unconventional gas supplies

developed mainly for domestic developed to capitalise on Asian
market market demand.
Cooper Basin emerging
Demand levels ~ 25,000 PJ domestic demand Current east coast demand ~750 PJ as premier location for
evaluation of unconventional
(2012) rising to 2,800 PJ/annum. resources

Price A high product price environment Prices historically low but rising
(initially) encouraged innovation as domestic and export prices Strike’s unconventional
acreage in the Cooper Basin
driven response ‘converge’ and the Eagle Ford Shale (US)

Land Access Favourable land access conditions Land use conflict - Australian East
Coast - clash with urban/agriculture

Infrastructure Well-developed pipeline network Much less infrastructure -

and readily accessible markets Cooper Basin best connected
unconventional supply area.

Hydrocarbon Operators targeted primary source Cooper Basin ‘coals’ are the source
Source rocks of prolific hydrocarbon basins rocks of the Basin
(predominantly marine shales)

Adapted from: DMITRE, SA, 2012; US Energy Information Administration (EIA, 2011b).

The success of the North American gas revolution was supported by favourable economics and
operators targeting the primary source rocks of hydrocarbon basins
Strike Energy Limited - The Southern Cooper Basin Gas Project | Investor Presentation 3
Cooper Basin Gas Supply Opportunities

The Cooper Basin is known as Australia’s most prolific onshore hydrocarbon basin. Appraisal expenditures in excess of $500 million are delineating
the unconventional resource potential including, gas composition, flow rates and ultimately the commerciality of these resourses.

TARGET ZONE - DEPTH COMPANY PRIMARY ‘UNCONVENTIONAL’ HYDROCARBON TARGETS AND PERMIT AREAS

Surface South North

Southern Cooper Basin Nappamerri Trough

PEL 96 PEL 516 SACB ATP PEL 218
PEL 95 PEL 115 JV 94OP ATP
- 1,500m PEL 94 855P

Primary Target
Strike Energy*
Gas saturated coals

Primary Target
Senex*
Tight gas sands

- 3,000m
Primary Target
SACB JV*
Shale gas and basin centred gas

Drillsearch* Primary Target

BG Shale gas and basin centred gas

Beach* Primary Target

- 4,000m
Chevron Shale gas and basin centred gas

*Approximations only of target zone depth and permit areas

Strike Energy’s primary gas target is the saturated Southern Cooper Coals - primary source rocks of Cooper Basin

Strike Energy Limited - The Southern Cooper Basin Gas Project | Investor Presentation 4
Strike’s Southern Cooper Basin Gas Project: Value Drivers

Strike is targeting shallower coal seams in the Southern part of the Cooper Basin, a play which differs considerably from the basin centred and
shale gas plays in the deeper parts of the basin. Significant discoveries were made in Strike’s permit areas, through drilling activity in 2012, which
increased the prospective resource by 400%.

Project Value Drivers

Resource
Favourable Resource Resource Productivity Services / Path to
Location Scale Characteristics (favourable Infrastructure Market
economics)

Appraisal Plan
(Target ex-field cost
~$3/GJ
excluding royalties)

Strike is executing a rapid appraisal plan to unlock the tremendous project potential

Strike Energy Limited - The Southern Cooper Basin Gas Project | Investor Presentation 5
Strike’s Southern Cooper Basin Gas Project: Favourable Location

Favourable land access characteristics exist across the permit areas. The terrain occupied by PEL 94, PEL 95 and PEL 96 is desert with low sand
dunes and there is limited agricultural activity.

PEL 95

PEL 94
Mount Isa

Gladstone

Permit area is principally Brisbane

desert, with limited to no Moomba
agricultural activity

PEL 96
Sydney
Adelaide

Melbourne

Hobart

South Australia has a stable regulatory regime for petroleum development and
is an active supporter of unconventional gas development activity

Strike Energy Limited - The Southern Cooper Basin Gas Project | Investor Presentation 6
Strike’s Southern Cooper Basin Gas Project: Resource Scale

Strike’s Southern Cooper Basin Gas Project has access to a significant prospective resource of between 6.3 and 16.4 Tcf* (net to Strike) in the
primary coal source rock of the Cooper Basin.
*Tcf = Trillion cubic feet
= 1,000 Bcf
1 Bcf = 1.05 PJ

PEL 95
PEL 94

PEL 96

~ 5 Tcf* < 1 Tcf 4 - 5 Tcf 6.3 - 16.4 Tcf

Total Gas supplied Combined east coast Equivalent to 20yr Strike’s share of recoverable sales gas
out of Cooper Australia gas demand supply for one 4 in relation to the coals
Basin over 40 per annum for industrial, million tonne per in PEL 94, PEL 95 and PEL 96
years generation and annum LNG train
commercial / residential

*Government of South Australia

Energy Resource Division
August 2012

Strike’s prospective resource is between 6.3 and 16.4 Tcf (net to Strike)

Strike Energy Limited - The Southern Cooper Basin Gas Project | Investor Presentation 7
Strike’s Southern Cooper Basin Gas Project: Resource Characteristics
Strike is targeting the coals in the Southern part of the basin. These coals are the primary hydrocarbon source rocks of the basin. Analysis of the
coals in Strike’s permit areas indicates that they are at the optimal depth and maturity for thermal gas generation. Subject to commerciality being
confirmed, it is likely that Strike can develop the coal sourced and hosted resources relatively quickly in its permit areas (compared to shale plays
and basin centred gas plays elsewhere in the basin) – wells will be drilled and completed at shallower depths and require less stimulation than a
shale or basin centred gas in the middle of the basin.

Key Characteristics of Coals - permit areas

Gas maturity
Coals in the Cooper Basin tend to be inertinite
rich (up to 90%) – inertinite matures much Coals in Strike’s acreage are at the optimal depth and
earlier than vitrinite Maturity
maturity for gas generation
In the Souther Cooper Basin the coals have
a vitrinite (Ro) between 0.5-1.0% which is
right in the peak gas generation window for
Gas adsorption and desorption data indicates the coals
inertinite Saturation
are fully saturated

Coals in the Cooper Basin have extremely low water

Southern Cooper Basin Coals Water
content

The gas resources in Strike’s permit areas are

Shallower
comparatively shallow, contributing to simpler and
Resources
lower cost of drilling and completion

CO2
CO2 levels in nearby fields are in range of 5-10%
Content

Characteristics of the coals in Strike’s permit areas demonstrate the existence of a compelling resource play

Strike Energy Limited - The Southern Cooper Basin Gas Project | Investor Presentation 8
Strike’s Southern Cooper Basin Gas Project: Resource Productivity
Strike’s appraisal and initial development plan (Phase One Area) is to focus on its PEL 96 permit area (STX 66.67% and operator) and establish a
new, sustained, scalable and profitable gas resource to supply the Eastern Australia gas market.

Key Appraisal Goals

Confirm gas content, composition and saturation of coals

3 well program
Phase 1 Area
Assess porosity of coals
PEL 94 Assess potential completion technology
PEL 95
Cooper Basin Assess permeability/productivity of target coals

Pre-production to test flow rates and commerciality

FID
PEL 96 Features of Appraisal Program

Rapid appraisal time

Low appraisal capital required to mature resource

Coal Troughs Strike Permits Analogous Wells
PEL 96 Phase One Area - 400-800 PJ resource Gas Pipeline Proposed Wells Foundation customer contribution to appraisal
Oil Pipeline Offset Wells and development expenditure

Strike has a targeted appraisal plan to efficiently assess the project fundamentals and economics

Strike Energy Limited - The Southern Cooper Basin Gas Project | Investor Presentation 9
Strike’s Southern Cooper Basin Gas Project: Services / Infrastructure
The Southern Cooper Basin Gas Project will have direct access to pipelines, roads, service support companies and processing facilities if required.

Key features of ‘in-place’ services/infrastructure

Accessibility to major pipelines, roads and other support services

Mount Isa

Readily available route to market

Gladstone

Brisbane
Moomba Contributes to lower capital cost

PEL 94 and PEL 96 are traversed by QIC Global Infrastructure’s Moomba to

Adelaide gas pipeline which is ‘open access’ and has spare capacity.
Adelaide
Sydney Alternative cost effective access to Moomba to Sydney pipeline.

Melbourne In-field gas processing provides an opportunity for Strike to become a

new independent Cooper Basin gas supplier

Hobart

The Southern part of the Cooper basin is ideally located given its proximity to adjacent infrastructure

Strike Energy Limited - The Southern Cooper Basin Gas Project | Investor Presentation 10
Strike’s Southern Cooper Basin Gas Project: Path to Market

Activity 2013 2014 2015 2016 2017 2018 2019 2020

Confirmation
PEL 96 (STX Operator) - Phase One Area

Appraisal

Pre-production wells
Successful production testing
Completion and
production testing
FID
Project Infrastructure

Production drilling

Gas supply to foundation

customer

Other customers

Potential future
supply options
Additional domestic Industrial, Generation and Commercial/Residential
PEL 94 / 95 / 96

supply

Third party LNG

Brownfield LNG

Greenfield LNG

Existing infrastructure together with funding/offtake commitment from

foundation customer provides clear commercialisation pathway
Strike Energy Limited - The Southern Cooper Basin Gas Project | Investor Presentation 11
Strike’s Southern Cooper Basin Gas Project: Path to Value

Initial Development (Phase One Area)

400 - 800 PJ resource can progress to a much PEL 95
larger development with >> 1,000’s PJ (net to PEL 94
Strike) resource across full permit areas

Initial Development
(Phase One Area)

PEL 96

PEL 96

Appraisal and development success with Phase One will prove out the concept for a
much larger development with tremendous economic value
Strike Energy Limited - The Southern Cooper Basin Gas Project | Investor Presentation 12
Project Highlights

Significant prospective resource in place

Rapid appraisal

Low appraisal capital

Minimal land access and community risks

Project located in favourable jurisdiction

Potentially favourable economics

Attractive market dynamics

Commercialisation pathway

Strike Energy Limited - The Southern Cooper Basin Gas Project | Investor Presentation 13
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 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.
Strike Energy Limited - The Southern Cooper Basin Gas Project | Investor Presentation
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 resource and or reserves in this presentation are based on
information compiled by Mr C Thompson. Mr. Thompson is the General
Manager of Strike’s Cooper Basin Project and has consented to the inclusion of
the resource and or reserves information in this report.
Mr. Thompson holds a Graduate Diploma in Reservoir Evaluation and
Management and Bachelor of Science Degree in Geology. He is a member of
the Society of Petroleum Engineers and has worked in the petroleum industry
as a practicing reservoir engineer for over 20 years.
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