STRIKE ENERGY LIMITED DUG CONFERENCE July 2015 Strike Energy Limited - DUG Presentation, July 2015 1
DUG Conference: Strike Energy Limited Eastern Australian gas supply - are there new sweet spots out there Strikes Southern Cooper Basin Gas Project - an emerging sweet spot Strike Energy Limited - DUG Presentation, July 2015 2
Eastern Australian Gas Supply: Are there new sweet spots out there An unconventional resource sweet spot is that part of the resource that has the lowest unit cost economics and maximum value. GAS GAS SUPPLY COST VALUE RESOURCE…
Gas Resource: Eastern Australian hydrocarbon basins Significant unconventional gas resources exist in the Cooper Basin and Queensland coal fields. Mount Isa Bowen and Surat Basins Gladstone Cooper-Eromanga Basin Moomba…
Eastern Australian Gas Market: 20-year total demand Over the 20-year period from 2020 to 2040, 40 Tcf of gas will be required to meet demand. Export LNG projects will create 75% of this demand. Domestic demand LNG Export demand…
Supply cost: Cost curve Strikes analysis highlights the steepness of the East Australian gas supply cost curve. The discovery and development of new large scale lower cost gas resources could substantially lower input costs for gas users…
Supply cost: Liquefaction business LNG liquefaction projects are merchant gas processing businesses. These businesses must source the lowest cost gas supply from the market, be that equity or third party gas. The cost of gas supply is the…
Supply cost: Focus moving to cost of supply Dramatic changes in the Eastern Australia gas demand profile have been driven by construction of six LNG trains at Gladstone. These trains will account for 30 Tcf of the 40 Tcf demand profile…
Eastern Australian Gas Supply: Summary Gas demand 40 Tcf over twenty years; LNG the dominant gas buyer LNG merchant business Operating cash flows highly leveraged to gas supply cost Cost curve Eastern States gas market cost…
Gas resource: Strikes Southern Cooper Basin Gas Project 2C Moomba Prospective Contingent Resource Resource* PEL 96 4,492 Bcf* Marsden 1 PEL 96 Phase 1,123Bcf* 104 Bcf One Area PEL 94 PEL 95 Davenport 1 STX 35% STX 50% Mount…
Unit Cost of Supply: Economics of Strikes Southern Cooper Coals Strikes demonstrated cost structure will drive competitive unit production costs for wells that recover greater than 3PJ. Production type curve - long stable phase PEL…
Unit cost of supply: Cost curve Strikes Southern Cooper Basin Gas Project has the potential to be a low cost gas producer. 1 Strike Southern Cooper PEL 96 Estimated unit cost of supply /GJ Eastern Australian demand (PJ) 10,000…
Value Creation: Klebb 1 flow test results The Klebb 1 single stage flow test is a small scale test of potential flow rates achievable from a commercial development well. Development Well Klebb 1 Flow Test Target commercial gas…
Value Creation: Future cash flow potential Strike is targeting a low unit cost of supply that will deliver strong operating cash flows in the stable production phase. Future value will be driven by per well operating cash flows and the…
Strikes Southern Cooper Basin Gas Project: An emerging sweet spot GAS GAS UNIT COST VALUE RESOURCE MARKET OF SUPPLY CREATION Cost of supply defines Full life cycle Operating PEL 96 prospective available market well cost / EUR…
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