STRIKE ENERGY LIMITED — AGM Information 2012

Nov 20, 2012

ASX Announcement

Strike Energy Limited ABN 59 078 012 745

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21 November 2012

The Company Announcement Officer ASX Ltd

via electronic lodgement

CHARIMAN’S ADDRESS AND AGM PRESENTATION

Please find attached:

1. Chairman’s address; and

2. Presentation to be given at the Annual General Meeting to be held at 2:00pm today.

Yours faithfully

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DAVID WRENCH Managing Director

Further information:

Strike Energy Limited

• David Wrench – Managing Director T: +61 2 8261 1000

• E: strike@strikeenergy.com.au

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STRIKE ENERGY LIMITED CHAIRMAN’S ADDRESS ANNUAL GENERAL MEETING – 21 NOVEMBER 2012

Ladies and Gentlemen,

The past 12 months has seen significant progress in our key projects – the Eagle Ford Shale in the US and the Southern Cooper Basin in South Australia.

Both projects are driven by new developments in drilling and completion technologies which have enabled the targeting of shales and coals as potential hydrocarbon reservoir formations.

In many parts of the world drilling and fracture stimulation of these unconventional target formations has unlocked large oil and gas resources and has provided a unique opportunity for companies of Strike’s capacity to participate in resource development projects of immense size.

Over the last few years, Strike has built a portfolio of permits covering some outstanding unconventional prospects in three of the most prolific oil and gas basins in Australia and North America.

Exploration and evaluation programmes are underway and delivering results which are reinforcing the potential of this portfolio.

In Australia, Strike participates in over 21,000 gross km[2 ] of exploration permits in the Southern Cooper and Eromanga Basins, including over 4,600 net km[2] (more than 1 million acres) prospective for shale and coal seam gas.

Two wells drilled in the 2012 financial year – Marsden 1 in PEL 95 and Davenport 1 in PEL 94 – confirmed the extent, as well as establishing the extraordinary thickness, of hydrocarbon-rich coal and shale sequences across the Strike permit area – including 110 metres of net coal at Davenport 1.

The drilling has established the presence of a multi-Tcf prospective gas resource.

The programme for the coming year is to demonstrate that gas contained in the resource can be successfully flowed.

If gas flow and commerciality are established, the rewards to shareholders will be substantial. Eastern Australia is experiencing unprecedented increases in gas demand and faces the prospect of steeply rising gas prices.

Cooper Basin producers – potentially including Strike – are best positioned to meet this increasing demand through existing pipeline infrastructure providing direct access to market.

In the USA, Strike’s Eagle Ford Shale play has advanced with the company increasing its’ lease position within the attractive gas-condensate fairway to approximately 37,400 gross acres (over 10,000 acres net to Strike).

The Bigham 1H well was drilled and fracture stimulated and is currently undergoing clean-up operations to which David will refer and describe in more detail.

Whilst Strike’s Southern Cooper Basin and Eagle Ford Shale assets provide shareholders with exciting prospects in two world-class unconventional basins, there is significant potential value in the company’s other assets.

The Company’s Carnarvon Basin conventional oil and gas exploration acreage is exposed to Shell’s very large deep water Palta prospect which is currently drilling. Strike has a 33.3% interest in an adjoining permit, WA460P, in which we have mapped a portion of the Palta structure with a multiTcf gas resource potential.

The Company’s production assets in Texas – the Louise gas-condensate and Permian Basin oil fields – continue to produce steadily, generating approximately $5 million of revenues over the past year.

The Permian Basin acreage also covers a developing unconventional shale play on which the Company has commenced evaluation.

In 2012 Strike has confirmed its position as a significant explorer in the rapidly expanding unconventional oil and gas business in Australia and the USA.

The opportunities currently before the Company are large scale and, in the Cooper Basin, of world class potential, and with clear paths to commercialisation.

Strike has built its’ current exciting position as a result of sustained effort by the management team over the past twelve months, and the efforts of Strike’s former Managing Director, Simon Ashton, the Company’s employees and joint venture partners over a number of years.

In closing I would like to thank the Strike staff and contractors and my fellow Directors for their valued contribution over the year.

I also would like to acknowledge the Company’s shareholders and to thank you for your continued strong support.

Together, I look forward to the important and exciting year that lies ahead.

Tim Clifton Chairman

ANNUAL GENERAL MEETING

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21 November 2012

STRIKE ENERGY – 2012 REVIEW

EAGLE FORD SHALE

SOUTHERN COOPER BASIN

CARNARVON BASIN

PRODUCING ASSETS

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STRIKE ENERGY

2012 REVIEW

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EAGLE FORD SHALE

• Increased lease position from 5,000 to over 10,000 net acres

• Drilled Bigham 1H production test well

• Successful frac completion and flow back operations underway

COOPER BASIN

• Drilled Marsden and Davenport wells

• Discovered very thick coals with high gas contents

• Prospective resource estimate upgraded

• Granted three new permits PEL 515, PEL 575 and PEL 71

CARNARVON

• Palta prospect drilling underway

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(20 November 2012)

	SNAPSHOT(20 November 2012)	SNAPSHOT(20 November 2012)
Corporate office US operations base Key management Listing Market capitalisation Issued shares Unlisted options Major shareholders Production(2012/13 F) Revenue(2012/13 F)	Sydney, Australia Houston, USA David Wrench – Managing Director Chris Thompson – General Manager, Cooper Basin Ben Thomas – President, USA ASX (ticker STX) ~$105 million 614,519,664 25,775,000 Board and management ~11% Institutional investors ~20% ~110,000 Boe conventional + new production from Eagle Ford Shale ~$4.0 million from conventional + new revenues from Eagle Ford Shale

NEAR TERM VALUE DRIVERS

• Eagle Ford Shale production test results

• Carnarvon Basin Palta prospect drilling

• Planned flow testing of Southern Cooper Basin unconventional evaluation wells

• Evaluation of Permian Basin Lower Clearfork Shale

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EAGLE FORD SHALE

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Eagle Ford Shale Trend
Oil Fairway
Strike’s lease area
Gas Condensate Fairway
Gas Fairway
Strike’s Lease Area
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• ~37,900 (gross) / ~10,400 (net) acres in the Eagle Ford Shale focused on the attractive gas-condensate fairway

SOUTHERN COOPER BASIN

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Davenport 1
Marsden 1
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16,000 km[2] / 4 million acres (net) of permits, including over one million acres with unconventional potential and new permits with Western Flank conventional oil potential

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THE EAGLE FORD SHALE

LEVERAGE TO THE USA’S PREMIER UNCONVENTIONAL LIQUIDS PLAY

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THE EAGLE FORD SHALE TREND

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Source: RBC Capital Markets

LIQUIDS RICH

• Eagle Ford Shale produces high-value oil and condensate

• Over-pressured formations generate strong flow rates

• Superior economics to dry gas plays

HEIGHTENED ACTIVITY

• Over 2,800 drilling permits issued in 2011 compared to 26 in 2008 (Source: TRRC)

• Drilling activity rapidly moving northeast to Strike’s lease area

• Entry of oil and gas majors through acquisitions and partnerships

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STRIKE’S LEASE AREA

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SANCHEZ ENERGY
Sante 1H
Completing
Prost A 1H
24 hour 1P, 1,120 Boe/d
Prost A 2H
24 hour 1P, 1,369 Boe/d
Prost B 1H
Awaiting frac
Prost B 2H
Currently drilling
Prost C 1H
Currently drilling
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STRIKE ENERGY
Bigham 1H
Testing
NFR ENERGY
Berckenhoff
Avg 30 day rate
396 Boe/d
NFR ENERGY
Sustr 1H
Avg 30 day rate
864 Boe/d
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BIGHAM 1H TESTING

• Flow back operations underway

REGIONAL DE-RISKING UNDERWAY

• Strong production rates from nearby wells have de-risked the region, including Strike’s lease area

35 TO 45 MILLION BOE RESOURCE POTENTIAL

• Participation in ~37,900 (gross) / ~10,400 (net) acres

• 315 gross / 85 net well locations at 120 acre well spacing

• 35 to 45 million Boe (net) potential based on the expected ultimate recovery (EUR) per well forecast by nearby operators

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PRODUCTION TESTING UNDERWAY

• Flowback operations have been underway for 30 days with oil production commencing after 9 days

• Current production rates (19 November)

TOTAL FLUID	OIL	WATER	GAS	OIL CUT
1,200 Bbl/day	240 Bbl/day	960 Bbl/day	520 Mcf/d	~20%

OBSERVATIONS

• Fracture stimulation operations successfully created a very large fracture system

• Gas oil ratio (GOR) and oil gravity consistent with other wells along trend

• High total fluid flow rate, with oil cut (% of oil in total fluid) increasing

• Well continuing to clean-up with only ~15% of frac fluid recovered so far

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SOUTHERN COOPER BASIN

A LARGE POSITION WITHIN AUSTRALIA’S LEADING UNCONVENTIONAL PLAY

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FORECAST AUSTRALIA GAS CONSUMPTION

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+ 1,700 PJ/a
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+ 2,500 PJ/a
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To be sourced To be sourced
from offshore from east coast
WA fields producers
Northern
Territory
~20 PJ
Queensland
~235 PJ
Western New South
Australia Wales
~350 PJ South ~160 PJ
Australia
~125 PJ
Victoria
~225 PJ
Tasmania
~15 PJ
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2010/11 gas consumption

2020 forecast gas consumption

GAS DEMAND FORECAST TO TRIPLE BY 2016

• Demand from Queensland LNG plants under construction plus increased role for gas in the clean energy future

• East coast gas prices forecast to reach A$6-9 / GJ

UNCONVENTIONAL POTENTIAL

• Established hydrocarbon basin with 50 years production

• Extensive thick shales, coals and tight sands

• Australia’s most active unconventional exploration region

BEST POSITIONING

• Existing oil and gas pipelines to east coast markets (running through Strike’s permits) with open access and spare capacity

• Manageable land access and environmental conditions

Source: EnergyQuest, Queensland Government

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UNIQUE CSG OPPORTUNITY

• Thickest coals in the Cooper Basin

• 1,500 - 2,000 metres depth

• Potential gas saturated coals

• Adjacent to existing pipeline infrastructure

• Accelerated 2013 program to meet increasing east coast gas market demand

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STRIKE’S PROSPECTIVE GAS RESOURCE

			Coals (Bcf)		Shales (Bcf)	Shales (Bcf)	Shales (Bcf)
Trough	Permit	P90	Pmean	P10	P90	Pmean	P10
Milpera, Larow & Weena*	PEL 94	1,659	2,702	3,980	365	630	947
Battunga	PEL 95	1,948	3,817	6,086	1,385	2,371	3,544
Weena*	PEL 96	2,650	4,315	6,291	241	420	630
Total Prospective Resource - Gas 6,257			10,833	16,357 1,991 3,420 5,121

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• Weena Trough within both PEL 94 and PEL 96

TOTAL ORGANIC CONTENT (%) Sth Cooper CSG Shallow CSG High total organic content available Cooper REM Shale to generate hydrocarbons

THICKNESS (m)

Thickness X area X gas content = gas-in-place

Sth Cooper CSG Shallow CSG Cooper REM Shale

RESOURCE CONCENTRATION (Bcf/Km[2] )

Sth Cooper CSG Shallow CSG Cooper REM Shale

Gas-in-place volume per square km

PERMEABILITY (mD)

Permeability X thickness X resource concentration = production

Sth Cooper CSG Shallow CSG Cooper REM Shale

WELL COSTS (estimated $m)

Cheaper is better!

Sth Cooper CSG Shallow CSG Cooper REM Shale

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Cooper REM
shale gas
30-50
Bcf/km [[2 ]]
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High
Cooper REM
shale gas
30-50
Bcf/km [[2 ]]
Cooper CSG
30-50 Bcf/km [2 ]
Shallow
CSG
<10
Bcf/km [2 ]
Completion complexity
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High

Low

Estimated production well cost

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UNCONVENTIONAL ACREAGE & CAPITALISATION v PEERS

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Source – Bell Potter

CONFIRM RESOURCE POTENTIAL

• Evaluation drilling has confirmed coal and shale thicknesses

• Existing seismic shows formations extend across wide area

• Lab analysis has confirmed encouraging hydrocarbon content

• Prospective resource to be certified by an independent geological consultant

• Achieve a near-term re-rating of asset value in-line with early stage peers

DEMONSTRATE PRODUCTIVITY

• Technical and economic scoping studies underway to develop optimal well design and completion technique

• Planned flow-testing during in H1/2013

• Achieve a medium-term re-rating of asset value in-line with peers at flow testing stage

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CARNARVON BASIN

OPTION VALUE FROM PALTA DRILLING

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CARNARVON BASIN – PALTA PROSPECT (WA 460 P)

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CARNARVON BASIN PERMITS

• Five permits – 1,200 km[2] (net)

• Four operated by Strike

• High working interests – average 44%

PALTA PROSPECT

• 13.5 Tcf gas-in-place estimated by Strike

• Approximately 20% (~2.5 Tcf) of the prospect mapped in WA 460 P – Strike 33.3%

• Palta 1 spudded by Shell (October 2012) in adjacent WA-384-P

• No cost to Strike

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PRODUCING ASSETS

CASHFLOW FROM CONVENTIONAL PRODUCTION

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		PERMIAN BASIN, TEXAS			LOUISE FIELD, TEXAS (Eaglewood Joint Venture)
Production(2011/12)		7,135 Boe (7 months)			680 MMcfe
Revenues(2012/13 F)		~$1 million			~$3.0 million
Reserves(30 June 2012)		344,000 Boe			3.9 Bcfe
Recent activity		Acquired November 2011 First infill well drilled August 2012			-
Upside potential		1,000 foot Lower Clearfork Shale coring & testing planned 2013			-

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2013 KEY DEVELOPMENT OBJECTIVES

• EAGLE FORD SHALE – demonstrate commercial production over a broad expanse of Strike’s lease area

• SOUTHERN COOPER BASIN – flow test hydrocarbons from coal and shale formations

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Oct Nov Dec Jan Feb Mar Apr May Jun
OUTCOME
2012 2012 2012 2013 2013 2013 2013 2013 2013
DEMONSTRATE
EAGLE FORD PRODUCTION TESTING PRODUCTION WELL #2 PRODUCTION WELL #3 PRODUCTION OVER A
BROAD AREA
POTENTIAL MAJOR
CARNARVON PALTA PROSPECT DRILLING
DISCOVERY
RESOURCE UPGRADE,
COOPER BASIN EVALUATION PLANNING EVALUATION PROGRAM / FLOW TESTING FLOW TESTING
CONFIRMED ACTIVITY CONTINGENT ACTIVITY
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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.

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