ASX Announcementasx.com.au/asxpdf/20130716/pdf/42h23g3xnxd8sj.pdf• targeting very competitive position on supply cost curve (target ex-field cost ~$3.00/GJ excluding royalties) •

16 July 2013

ASX Announcement

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

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: [email protected]

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mailto:[email protected]

STRIKE ENERGY LIMITED THE SOUTHERN COOPER BASIN GAS PROJECTInvestor Presentation July 2013

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

Executive Summary

• resource target is gas saturated Southern Cooper coals

•Strike’s prospective resource between 6.3 and 16.4 Tcf

• favourable market dynamics

• rapid appraisal time

• low appraisal capital to mature resource

• foundation customer contribution to appraisal and initial development expenditure

• characteristics of coals demonstrate potential for a compelling resource play

• shallower coal seam targets differ significantly from basin centred gas and shale plays in deeper part of basin

• targeting very competitive position on supply cost curve (target ex-field cost ~$3.00/GJ excluding royalties)

•binding term sheet for up to 150PJ of gas (20 year supply) signed with foundation customer (Orica)

• ideal project location with access to pipelines connected to east coast gas network

•potential for much larger development with tremendous economic value

Significant gas resource

Potentially favourable economics

Rapid appraisal and development

Commercialisation pathway

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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.

Overview

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

US Australia

Driver Unconventional gas supplies developed mainly for domestic market

Unconventional gas supplies developed to capitalise on Asian market demand.

Demand levels ~ 25,000 PJ domestic demand (2012)

Current east coast demand ~750 PJ rising to 2,800 PJ/annum.

Price A high product price environment (initially) encouraged innovation driven response

Prices historically low but rising as domestic and export prices ‘converge’

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

Infrastructure Well-developed pipeline network and readily accessible markets

Much less infrastructure - Cooper Basin best connected unconventional supply area.

Hydrocarbon Source

Operators targeted primary source rocks of prolific hydrocarbon basins (predominantly marine shales)

Cooper Basin ‘coals’ are the source rocks of the Basin

LNG to export markets

Cooper Basin emerging as premier location for evaluation of unconventional resources

Strike’s unconventional acreage in the Cooper Basin and the Eagle Ford Shale (US)

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*Approximations only of target zone depth and permit areas

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.

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

COMPANY PRIMARY ‘UNCONVENTIONAL’ HYDROCARBON TARGETS AND PERMIT AREAS

Surface

Primary Target Gas saturated coals

Primary Target Shale gas and basin centred gas

Primary Target Tight gas sands



PEL 516PEL 115

SACB JV

ATP94OP

PEL 218ATP855P

TARGET ZONE - DEPTH

- 1,500m

- 4,000m

- 3,000m

PEL 96PEL 95 PEL 94

Southern Cooper Basin

Strike Energy*

Drillsearch* BG

Senex*

SACB JV*

Beach* Chevron

Nappamerri Trough

South North

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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%.

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

FavourableLocation

ResourceScale

ResourceCharacteristics

Resource Productivity(favourable economics)

Appraisal Plan (Target ex-field cost

~$3/GJ excluding royalties)

Services /Infrastructure

Path to Market

Project Value Drivers

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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.

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

Permit area is principally desert, with limited to no agricultural activity

PEL 96

PEL 95

PEL 94

Moomba

Gladstone

Brisbane

SydneyAdelaide

Melbourne

Hobart

Mount Isa

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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.

~ 5 Tcf*

Total Gas supplied out of Cooper Basin over 40

years

4 - 5 Tcf

Equivalent to 20yr supply for one 4 million tonne per annum LNG train

6.3 - 16.4 Tcf

Strike’s share of recoverable sales gas in relation to the coals

in PEL 94, PEL 95 and PEL 96

< 1 Tcf

Combined east coast Australia gas demand

per annum for industrial, generation and

commercial / residential

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

*Tcf = Trillion cubic feet = 1,000 Bcf1 Bcf = 1.05 PJ

PEL 96

PEL 95PEL 94

*Government of South Australia Energy Resource Division August 2012F

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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.

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

Gas maturity Coals in the Cooper Basin tend to be inertinite rich (up to 90%) – inertinite matures much earlier than vitrinite

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 inertinite

Southern Cooper Basin Coals

Key Characteristics of Coals - permit areas

MaturityCoals in Strike’s acreage are at the optimal depth and maturity for gas generation

SaturationGas adsorption and desorption data indicates the coals are fully saturated

WaterCoals in the Cooper Basin have extremely low water content

Shallower Resources

The gas resources in Strike’s permit areas are comparatively shallow, contributing to simpler and lower cost of drilling and completion

CO2 Content

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

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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.

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

Key Appraisal Goals

Confirm gas content, composition and saturation of coals

Assess porosity of coals

Assess potential completion technology

Assess permeability/productivity of target coals

Pre-production to test flow rates and commerciality

FID

Features of Appraisal Program

Rapid appraisal time

Low appraisal capital required to mature resource

Foundation customer contribution to appraisal and development expenditure

3 w

ell p

rogr

am

Phas

e 1

Area

Cooper BasinPEL 95

PEL 96

PEL 94

Coal TroughsPEL 96 Phase One Area - 400-800 PJ resource

Strike Permits Gas PipelineOil Pipeline

Analogous WellsProposed WellsOffset WellsF

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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.

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

Key features of ‘in-place’ services/infrastructure

Accessibility to major pipelines, roads and other support services

Readily available route to market

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.

Alternative cost effective access to Moomba to Sydney pipeline.

In-field gas processing provides an opportunity for Strike to become a new independent Cooper Basin gas supplier

Moomba

Gladstone

Brisbane

SydneyAdelaide

Melbourne

Hobart

Mount Isa

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Strike’s Southern Cooper Basin Gas Project: Path to Market

Existing infrastructure together with funding/offtake commitment from foundation customer provides clear commercialisation pathway

Activity 2013 2014 2015 2016 2017 2018 2019 2020

Appraisal

Pre-production wells

Completion and production testing

Project Infrastructure

Production drilling

Gas supply to foundation customer

Other customers

Potential future supply options

Additional domestic supply

Third party LNG

Brownfield LNG

Greenfield LNG

PEL

96 (S

TX O

pera

tor)

- Ph

ase

One

Area

PEL

94 /

95 /

96 Industrial, Generation and Commercial/Residential

Confirmation

Successful production testing

FID

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Strike’s Southern Cooper Basin Gas Project: Path to Value

Appraisal and development success with Phase One will prove out the concept for a much larger development with tremendous economic value

Initial Development (Phase One Area) 400 - 800 PJ resource can progress to a much larger development with >> 1,000’s PJ (net to Strike) resource across full permit areas

PEL 96

PEL 95PEL 94

PEL 96

Initial Development (Phase One Area)

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Project Highlights

Significant prospective resource in place

Attractive market dynamics

Potentially favourable economics

Commercialisation pathway

Rapid appraisal

Low appraisal capital

Minimal land access and community risks

Project located in favourable jurisdiction

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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 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 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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Documents

ASX Announcementasx.com.au/asxpdf/20130716/pdf/42h23g3xnxd8sj.pdf• targeting very competitive position on supply cost curve (target ex-field cost ~$3.00/GJ excluding royalties) •