Schroeder Equities Resource Conference, page-7

I had the privilegeto be invited to the ‘Schroeders Equities Resource Conference’ in Zurich heldthis Friday.

It was a very interesting event with insightful presentations of selected ASX listed resource companies. Strike was the only o+g company at the conference and Stuart Nicholls gave by far the best presentation of the day. He is a powerful presenter and his speech was super inspiring and encouraging for the (near) future of our company.

I had the opportunity for a short chat with him covering a couple of questions during a break. Like other posters already said, he is very open to explain patiently his point of view…

- Securing a rig capable to drill West Erregulla appraisal wells is not an issue

- Native titles are expected soon

- Dampier-Bunbury pipeline is bi-directional (but never used from south to north)

More than ever I’m convinced we are on the way to build a major multibillion mc company…

Here are my notes from the presentation but please keep in mind, English is not my first language and I might misunderstand some points that have been made…

“This will be some of the cheapest gas on the planet - outside a little bit of gas coming from Qatar and Russia - and makes the henry hub gas in the US look expensive”

• Strike was early to Perth Basin by acquiring an exploration well next to Waitsia and as a fast mover STX very quickly acquired 40% of the entire Perth Basin.

• Resulting in a 1.5 TCF discoveryafter West Erregulla and Strike holds all the exploration running room wherethe proven Permian Gas Fairway extends in there.

• 60 years of exploration in PerthBasin resulting in 315 dry holes and the discovery of about 100mm BOE whichdoubled immediately with the discovery of Waitsia and again after WestErregulla to about 400mm BOE.

• Waitsia – the fourth largestconventional oil and gas discovery in Australian history - was an absolute accidentallydiscovery. The shallow Limestone along the WA coastline is quite destructive to seismics – even with quality 3d seismics one gets a bad picture of the deeper structures and the Perth Basin was considered full of tight gas. In 2015 AWE saw unexpected gas during an appraisal drilling in Early Permian tight sandstone and decided to keep drilling into the Kingia sandstone …and discovered Waitsia…

• The results coming out of Waitsia lookedat that time a lot like Gulf of Mexico, offshore Algeria and the Viking Grabenof the North Sea.

• Since 2015 seven exploration wellsdrilled in the Permian Fairway with an 100% success rate showing an enormousgas fairway buried under 3,500m of tight gas hiding it for everybody until now….The Perth Basin is set to become the largest conventional gas basin inAustralians history. Third party estimates are in the range of 6 to 10 TCF ofgas and Strike covers 40% of the acreage.

• 70% of WA domestic gas market issouth of Dongara and Strike is in the strategic position of taking advantage ofthe location close to that market resulting in a $1.10/GJ arbitrage goal (about25% of the total delivering cost to the customer) compared with competitors from the North-West.

• The Permian Fairway also representsa multi TCF backfill option to the very quickly aging NWS LNG projects.

• Very recently over $1 billion of transactionsin the Permian Basin. AWE t/o: Waitsia have been valued at $1.22/PJ;applied to 750 bcf getting a mc of 800 Million to 1 Billion Dollar whichrepresents the absolute minimum considered to be a fair value for Strike. CreditSuisse and JP Morgan have Strike on their top-10 list of companies likely to beacquired in 2020.

• The next target in the fairway, SouthErregulla, goanna be somewhere between 1 and 2 TCF to Strike. Strike wouldhave enough gas to execute different options for marketing. Rightnow, Strike is focused to serve the domestic market and has the advantage to beclose to the market in the South West. If the price is $5/GJ, customers mustpay $6.44/GJ if they buy from the Nord-West compared to $5.36/GJ if they buyfrom Strike. Strike will have the structural advantage to be the first company contractinggas in WA every time a new gas contract comes up for negotiation.

• Appraisal drilling will start earlyin the second half of 2020 and Strike will complete these wells as producers.