Announcement PDF ANNUAL REPORT FOR THE FINANCIAL YEAR ENDED 30 JUNE 2023 CONTENTS PAGE CHAIRMAN’S LETTER MANAGING DIRECTOR’S REPORT OPERATIONS AND PROJECT OVERVIEW DIRECTORS’ REPORT STR I KE E N E R GY L I M I TE D AN N UAL R E P O RT 2 0 2 3 FINANCIAL REPORT Strike is a leading Western Australian energy business, integrating the substantial natural gas resources and the world class renewable energy potential of the Perth Basin region, to pave the way to a lower carbon future. ii CONTENTS Chairman’s Letter 3 Managing Director’s Report 5 Operations and Project Overview 9 Upstream Assets 10 Downstream Projects 26 Directors’ Report 30 33 Operating and Financial Review 37 Remuneration Report 42 Auditor’s Independence Declaration 56 Directors’ Declaration 57 MANAGING DIRECTOR’S REPORT Reserves and Resources Financial Report CHAIRMAN’S LETTER 2 CONTENTS PAGE About Strike 58 60 Notes to Financial Statements 64 Independent Auditors Report 105 Additional Securities Exchange Information 110 Corporate Directory 112 OPERATIONS AND PROJECT OVERVIEW Financial Statements Important Notices Project Haber The successful development of Project Haber is contingent on, among other things, the outcomes of FEED on Project Haber, the proving up of sufficient gas reserves at South Erregulla, access to finance and (where required) equity participation, finalising urea offtake agreements, and obtaining all requisite regulatory and stakeholder permits, approvals and authorisations. The concept, feasibility and pre-FEED studies prepared by TechnipFMC on Project Haber to date (as referenced in ASX announcement dated 15th December 2021 titled Project Haber Update) have been undertaken to determine the potential viability of Project Haber and to reach a decision to proceed with more definitive studies, and as such are indicative in nature only. The studies are based on low-level technical and economic assessments and are insufficient to provide full assurance of an economic development case at this stage or provide certainty that the conclusions of the studies will be realised and that the development of Project Haber will be commercially viable. STR I KE E N E R GY L I M I TE D AN N UAL R E P O RT 2 0 2 3 FINANCIAL REPORT Future Statements Statements contained in this Report are or may be forward looking statements. All statements in this Report regarding the outcomes of preliminary and definitive feasibility studies, projections and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. These statements relate to future events and expectations and as such involve known and unknown risks and significant uncertainties, many of which are outside the control of Strike. Actual results, performance, actions and developments of Strike may differ materially from those expressed or implied by the forward-looking statements in this Report. Such forward-looking statements speak only as of the date of this Report. Refer to the ‘Operating and Financial Review’ section of the Directors’ Report for a summary of certain general and Strike specific risk factors that may affect Strike. There can be no assurance that actual outcomes will not differ materially from these statements. A number of important factors could cause actual results or performance to differ materially from the forward looking statements, including the aforementioned risk factors. Investors should consider the forward looking statements contained in this Report in light of those disclosures. To the maximum extent permitted by law (including the ASX Listing Rules), Strike and any of its affiliates and their directors, officers, employees, agents, associates and advisers disclaim any obligations or undertaking to release any updates or revisions to the information in this document to reflect any change in expectations or assumptions; do not make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the information in this document, or likelihood of fulfilment of any forward-looking statement or any event or results expressed or implied in any forward-looking statement; and disclaim all responsibility and liability for these forward-looking statements (including, without limitation, liability for negligence). Nothing in this document will under any circumstances create an implication that there has been no change in the affairs of Strike since the date of this Report. DIRECTORS’ REPORT Precinct Development The proposed Precinct development, including siting Project Haber within the Precinct area, will be contingent on, among other things, successfully re-zoning the land for the intended renewable and industrial uses and obtaining all other required regulatory approvals, licences and authorisations. 1 This 2023 Annual Report is a summary of Strike’s operations, activities and financial position for the 12-month period ended 30 June 2023. In this report, unless otherwise stated, references to ‘Strike’, the ‘company’, ‘we’, ‘us’ and ‘our’ refer to Strike Energy Limited and its subsidiaries. This report contains forward‑looking statements. Please refer to page 1, which contains a notice in respect of these statements. All references to dollars, cents or $ in this document are to Australian currency, unless otherwise stated. Due to rounding, figures and ratios in tables and charts throughout this report may not reconcile to totals. An electronic version of this report is available on Strike’s website www.strikeenergy.com.au. Strike was incorporated in 1997 and listed on the ASX in 2004. Strike has recently evolved into a trailblazer in the Australian energy landscape, focused on creating value for our shareholders and the community through our Perth Basin assets. Through strategic partnerships, cutting-edge technology, and a dedicated team of industry experts, we aim to achieve remarkable outcomes in even the most challenging geological and logistical settings. The 2023 Corporate Governance Statement can be viewed on our website on the Corporate Governance page. MANAGING DIRECTOR’S REPORT Strike Energy Limited (ASX:STX) is an ASX-listed Western Australian energy business aspiring to be Australia’s lowest cost onshore energy producer. Strike is a leading Australian independent explorer and gas developer focused on its large and high-quality conventional gas resources in the Perth Basin. Our primary objective is to provide sustainable, low-cost, and reliable gas to the domestic market in order to support the WA energy transition away from coal fired power and enable the growth of the critical minerals industry. CHAIRMAN’S LETTER ABOUT THIS REPORT CONTENTS PAGE ABOUT STRIKE OPERATIONS AND PROJECT OVERVIEW DIRECTORS’ REPORT FINANCIAL REPORT STR I KE E N E R GY L I M I TE D AN N UAL R E P O RT 2 0 2 3 2 01 CHAIRMAN’S LET TER CONTENTS PAGE Dear Shareholders, I am delighted to acknowledge the Company’s significant achievements over the past year. CHAIRMAN’S LETTER I will leave it to our CEO and Managing Director, Stuart Nicholls, to chronicle the diverse range of activities in which Strike made its mark, whether they be in the energy market, the capital markets or in the field, but suffice to say, it has been another transformative year for us. The WA Government recognises the challenges it faces in managing a smooth transition but continues to alter domestic gas policy reactively and in ways that threaten stable future supplies. STR I KE E N E R GY L I M I TE D AN N UAL R E P O RT 2 0 2 3 Our financial flexibility, coupled with prudent risk management, underpins our capacity to drive sustainable growth and shareholder returns in the coming years. We continue to pursue both organic and inorganic growth opportunities that align with our strategy. This is further demonstrated by our entry into a Scheme Implementation Deed to acquire our Joint Venture partner, Talon Energy via a scheme of arrangement, as announced to the ASX on the 14th of August 2023. This acquisition is unanimously recommended by the Talon board of directors, in the absence of a superior proposal, and subject to the independent expert concluding, and continuing to conclude, that the proposed transaction is in the best interests of Talon shareholders. FINANCIAL REPORT This year, Strike’s balance sheet was bolstered by our strategic involvement in the take-over of our West Erregulla Joint Venture partner, Warrego Energy. By accepting Hancock Energy’s higher and ultimately successful bid, Strike added $136 million to our cash reserves. As a result, we have entered FY24 with sufficient cash to fund our Gas Acceleration Strategy, which is an operational plan to execute a Additionally, the multiple-bidder interest in Warrego’s non-operated share of West Erregulla underscores the strategic value of our assets in a world of shrinking low-cost supplies. We believe that our shareholders can take great comfort from these recent corporate activities in the Perth Basin and see them as an indication that Strike has the right commodity at the right time in the right jurisdiction. DIRECTORS’ REPORT Despite our disappointment over the recent decision to ban the export of Perth Basin gas, we continue to work collaboratively with the WA Government with the aim of creating a domestic gas market which satisfies the needs of consumers but doesn’t undermine or negate the investment case for Strike and others to bring on new supply. multi development drilling, seismic and construction program across our 3,000 km² Perth Basin acreage. OPERATIONS AND PROJECT OVERVIEW Behind all of this activity was the ambition to be the dominant supplier of onshore gas from the Perth Basin to Western Australia’s retail and industrial consumers. As Western Australia joins the world in the move away from coal-fired electricity to a lower carbon future, natural gas will remain a key energy source for an extended period. This flexible, reliable and lower carbon-intensity source of energy will compliment renewables and will also provide primary thermal and chemical feedstock. MANAGING DIRECTOR’S REPORT A hallmark of Strike is its ability to seize opportunities others haven’t appreciated and then execute our plans expeditiously. This capability has been evident from the time we first committed scarce funds to the successful West Erregulla drilling campaign, through to the takeover of UIL Energy Limited, the South Erregulla and Walyering discoveries and to our bold Project Haber urea project. 3 C H A I R M A N ’ S L E T T E R (CONT’D) CONTENTS PAGE CHAIRMAN’S LETTER MANAGING DIRECTOR’S REPORT STR I KE E N E R GY L I M I TE D AN N UAL R E P O RT 2 0 2 3 Yours sincerely John Poynton AO Chair – Strike Energy Limited FINANCIAL REPORT Sustainability is at the forefront of all our activities. Strike’s ethos is to design its projects at the outset with a view to minimising emissions, rather than rely on carbon offsets after the fact to abate emissions. This is evidenced by our utilisation of the world class renewable energy sources in the Perth Basin to 100% power our facilities at the Walyering Gas Plant and our strategic acquisition of The Precinct, which will provide opportunities to further integrate renewable energy. This will minimise the carbon intensity of our projects upfront and reduce the need for carbon offsets in the future. Sincere thanks to our shareholders, many of whom have supported Strike over an extended period. We know that there are many investment opportunities for your capital and we are grateful for your continued commitment to us. DIRECTORS’ REPORT This production milestone will bolster Strike’s financial capability to self-fund the development of our highly attractive portfolio of Perth Basin gas fields and allow the company to continue to explore its significant exploration assets. I want to extend my gratitude to our dedicated and passionate team, whose hard work and unwavering commitment have made the achievements over the past year possible. Together, we are poised for a future filled with opportunities and success, and I have full confidence in our ability to continue delivering on the stretch targets we set. OPERATIONS AND PROJECT OVERVIEW Finally, and probably most exciting of all, Strike has spent much of the past year preparing for its evolution into a profitable gas and condensate producer. It is worth noting that it has been over 10 years since the last new source of gas was brought into production in WA. 4 02 MANAGING DIRECTOR’S REPORT CONTENTS PAGE Dear Shareholders, CHAIRMAN’S LETTER The past year has seen Strike take significant steps towards becoming a major producer in the Western Australian energy market. Our strategic entry into Western Australia in 2018 has seen us become the largest natural gas reserve and resource holder in the high‑profile Perth Basin, which is being recognised by the Government and regulators as a critical piece of Western Australia’s energy market from now and into the future. I am glad to share that we did not register any lost time injuries during the past reporting year. The Strike team STR I KE E N E R GY L I M I TE D AN N UAL R E P O RT 2 0 2 3 Strike is proud of, and committed to, working closely with the communities in the Mid West region of Western Australia in which we operate. Our community consultation, engagement and investment programs across the region, provide us with an excellent opportunity to connect with the people impacted most by our operations. I would like to thank those who take the time to engage with us whilst we work together towards providing a cleaner energy future. FINANCIAL REPORT Health, Safety, Environment, Community and People At Strike, we pride ourselves on championing sustainability and the environment. This is evidenced by the design of the Walyering gas facility, which is powered 100% by solar and batteries, making modelled Scope 1 emissions of the project some of the lowest in Western Australia. We plan to continue to incorporate renewable energy into our future projects, which will help us to achieve our goal of being carbon neutral by 2030. DIRECTORS’ REPORT To facilitate this strategic direction, the Board of Directors determined to re-sequence the Company’s downstream vertical integration ambitions with the Company’s less capital intensive upstream domestic gas development projects that will provide a more immediate return on capital. To accommodate this attractive opportunity, Project Haber has been deferred to the latter part of the decade save for environmental approvals and other long lead item planning which will continue to be progressed. accomplished three months of construction at the Walyering Gas Processing Facility, along with three flow tests and two well re-entry and completions, for a total of 155,794 exposure hours, with no lost time injuries. This underscores our team’s strong commitment to safety, and reflects our Company’s focus on the integrity of our safety systems. OPERATIONS AND PROJECT OVERVIEW We plan to achieve this through our government endorsed Gas Acceleration Strategy, which looks to fast track the exploitation of our existing reserves and the proving up of additional reserves across our Perth Basin assets, which include Greater Erregulla, Walyering and Ocean Hill. This strategy will enable us to provide sustainable, low-cost, and reliable gas supply to the domestic market to support the Western Australian energy transition away from coal fired power and to facilitate the growth of the critical minerals industry. MANAGING DIRECTOR’S REPORT Over the year we saw drastic changes in domestic gas market conditions, which continue to tighten as demand rises against a backdrop of reduced reliability of supply. The Australian Energy Market Operator (AEMO), along with research houses Rystad and Wood Mackenzie, have recognised that the Perth Basin is likely to be the major source of future gas supplies into the Western Australian market. This market dynamic has provided us with an excellent opportunity to leverage our substantial reserves position in the Perth Basin and create near term value for our shareholders and the community. 5 M A N A G I N G D I R E C T O R ’ S R E P O R T (CONT’D) CONTENTS PAGE Max monthly WA spot gas price (S/GJ) AEMO Base scenario WA gas market balance (TJ/d) (removal of Perdaman - Scarborough supply of 130 TJ/dfrom 2017) CHAIRMAN’S LETTER 1,300 10 8 1,200 6 1,100 -343 -50 4 1,000 Q1/17 Q1/19 Q1/21 Q1/23 Prices Up & Contracts Shortened 23 24 25 26 27 New supply outlook 28 29 30 31 32 Domestic gas demand Forecast supply prior to Perdaman FID 36.5 PJ of gas over five years to Santos WA Limited, and neared completion of our 33 TJ/d gas processing facility, which will enable us to complete our journey from explorer to producer. Post the reporting period, the Walyering Joint Venture agreed to drill the Walyering 7 appraisal well which will look to convert up to 19 PJe (net to Strike) of 2C Contingent Resources to Reserves1. At Walyering, we took our first investment decision, were granted our first Production Licence (L23), secured a binding gas supply agreement for a gross In February, Strike entered a drilling agreement with Ensign and a rig sharing agreement with Mineral Resources that saw us commit to 2 firm well slots Asset and Project Overview Conversion of Resources to Reserves is subject to appraisal drilling results. Neither the conversion nor the rate of conversion is guaranteed. 2 Refer to page 36 for important information regarding oil and gas reserve and resource estimation. 3 Refer to footnote 2. Strike is yet to secure tenure via a Greenhouse Gas Title over EP503 to appraise the storage resource. As such, Strike currently has no net entitlement to the assessed storage resource. STR I KE E N E R GY L I M I TE D AN N UAL R E P O RT 2 0 2 3 FINANCIAL REPORT 1 DIRECTORS’ REPORT FY23 saw Strike achieve major milestones across our Perth Basin assets. At Greater Erregulla, we certified our maiden gas 2P Reserves at South Erregulla of 128 PJ, along with 271 PJ of 2C Contingent Resources2, 100% owned by Strike. Whilst drilling South Erregulla-1, Strike appraised the Jurassic aged sandstones of the Cattamarra Coal Measures for their suitability and potential use as a future carbon sequestration and underground storage formation, which culminated in RISC independently assessing a gross 2C Contingent CO₂ Storage Resource in these Jurassic reservoirs of 4.80 million tonnes of CO₂.3 OPERATIONS AND PROJECT OVERVIEW To enable and support Strike’s growth, we moved into our new offices at 40 Kings Park Rd, providing us with a new remote operations centre to control our production facilities and the space and resources required to continue our growth trajectory as a company. Our employee turnover rate of 2%, despite a period of high turnover across the industry due to demand, is a testament to our unique and progressive culture. In May, we also welcomed ex-Woodside Senior Vice President, Jill Hoffmann, to the Strike Board. Her experience in the Western Australian energy markets has been immensely appreciated already, and we look forward to working together going forward. Compiled using information from GasTrading Spot Market – Forecast v Actual: http://www.gastrading.com.au/spot-market/ historical-prices-and-volume MANAGING DIRECTOR’S REPORT 2 Q1/15 900 6 M A N A G I N G D I R E C T O R ’ S R E P O R T (CONT’D) CONTENTS PAGE CHAIRMAN’S LETTER MANAGING DIRECTOR’S REPORT We have also had positive engagement with our new EP469 Joint Venture partner in preparation for the 2-near field exploration wells close to West Erregulla; Southwest Erregulla-1 and Erregulla Deep-1, which have now been approved and will come onto the rig schedule in CY24. 4 Refer to footnote 1. 5 Refer to footnote 3. STR I KE E N E R GY L I M I TE D AN N UAL R E P O RT 2 0 2 3 Other exploration activities included successfully acquiring 128km of new 2D seismic over the Eneabba Deep prospect in Strike’s 100% owned and operated EP 506, which, subject to results, will allow us to mature the prospect to drill ready. We also awarded two seismic campaigns to be acquired in FY24 by FINANCIAL REPORT Early in the period, Strike’s Board undertook a strategic review and determined the optimal Post reporting period, Strike has concluded its pre-final investment decision South Erregulla gas marketing process and commenced detailed negotiations with a major WA industrial gas user for a 20 TJ/d, five year binding gas supply agreement which we expect to finalise in the coming months. DIRECTORS’ REPORT At the beginning of this financial year, we acquired 3,500 ha of freehold farming land in the Mid West that lies directly above our South Erregulla Gas and CO₂ storage5 reservoirs. This piece of land will house Strike’s “Mid West Low Carbon Manufacturing Precinct” (the Precinct) and holds strategic value for reducing the cost and carbon intensity of Strike’s developments. This is a prime location for Australia’s best renewable energy sources of both wind and solar. location for a domestic gas processing plant to service our Greater Erregulla portfolio of assets is at the Precinct. Phase 1 development of South Erregulla has begun, with Strike contracting globally recognised natural gas solutions business, Enerflex, to conduct engineering and provide a lump sum priced option for procurement and fabrication of the South Erregulla Phase 1 (40TJ/day) processing modules. Enerflex estimates that the modules could be fabricated and ready for shipment to Strike between 44 and 48 weeks of the orders being placed, facilitating an accelerated on-stream timeline. OPERATIONS AND PROJECT OVERVIEW and secure 4 option well slots over the FY24/25 period with Ensign Rig 970. Post year end, we received handover of the rig and have spudded the first of 2 appraisal wells at South Erregulla with the intention of converting up to 178 PJ of 2C Contingent Resources in the Kingia Sandstone to Reserves.4 7 M A N A G I N G D I R E C T O R ’ S R E P O R T (CONT’D) Corporate I would also like to thank you, our shareholders, for continuing to support our evolving Company and its exciting prospects now, and over the coming years. We have a very bright future at Strike, and I look forward to continuing to deliver these critical energy projects and the prosperity that our communities, shareholders and economy will enjoy as a result. Yours sincerely, Stuart Nicholls Managing Director and Chief Executive Officer Conclusion Based on net proceeds of $113m ($136m of proceeds from sale of Strike’s 377,040,765 Warrego shares for 36 cents per share, less the total acquisition price of ~$22.3m for 93,312,610 Warrego shares) divided by the total of 283,728,155 Strike shares issued. 7 Includes an uncommitted $80 million debt facility for Strike’s South Erregulla domestic gas development, contingent on lender credit approval. 8 Uncommitted facility remains subject to lender credit approval. STR I KE E N E R GY L I M I TE D AN N UAL R E P O RT 2 0 2 3 FINANCIAL REPORT 6 DIRECTORS’ REPORT At the conclusion of another busy year at Strike we are poised for the commencement of what we see as a growing cashflow over the coming decade. Whilst never a straight line to success, Strike continues to adapt, learn and apply its resources and capabilities where we can see the fastest and highest return to our shareholders. We expect that, with every incremental project, we will deliver faster outcomes and better returns as Strike matures into a significant supplier of domestic energy. OPERATIONS AND PROJECT OVERVIEW Strike also executed the facility documentation for a $153 million secured financing package with Macquarie Bank Limited on revised and improved terms7. This saw us finish the year with a strong liquidity position of ~$176 million ($129 million of cash and $47 million of committed, undrawn debt facilities), plus an uncommitted $80 million contingent debt facility for Strike’s South Erregulla domestic gas development8. MANAGING DIRECTOR’S REPORT During the reporting period, we participated in an off-market takeover bid for Warrego Energy Limited, our joint venture partner in EP469 and the West Erregulla field. Also participating in the corporate activity were Beach Energy, Mineral Resources and Gina Rinehart’s Hancock Energy. Strike finished its scrip offer with ~30.4% of the total Warrego shares on issue but chose to accept Hancock’s offer of $0.36 per Warrego share, which saw Strike realise $136 million in proceeds. The proceeds generated were equivalent to an equity raise at approximately 40 cents6 per Strike share, or a 16% premium to Strike’s trading price at the time. CHAIRMAN’S LETTER I would like to offer my sincere thanks and appreciation to my entire team, with special thanks to the Executive team and all of our talented staff, and an acknowledgement to the Board for their ongoing support and direction. CONTENTS PAGE Terrex; Ocean Hill 3D (EP495) and Kadathinni 2D (EP503, EP504 & EP505), both of which have the potential to unlock further resources across Strike’s 100% owned and operated acreage. 8 03 OPER AT IONS A ND PR OJECT OVERVIE W CONTENTS PAGE CHAIRMAN’S LETTER Strike’s petroleum acreage in the onshore, northern Perth Basin has enabled us to lay claim to the basin’s largest portfolio of natural gas Reserves and Resources.9 The adjacent map details our expansive acreage holding which covers both the prolific Permian gas play in the north, and the Jurassic wet‑gas play in the south. MANAGING DIRECTOR’S REPORT The Perth Basin stretches over 400 km from Perth to Geraldton and contains significant gas fields such as Beach Energy and Mitsui’s Waitsia and Beharra Spings, and Mineral Resources’ Lockyer and North Erregulla. OPERATIONS AND PROJECT OVERVIEW Strike’s flagship Greater Erregulla Permian Gas fields hold the majority of our 2P Reserves (339 PJ, net to Strike), with the condensate rich Walyering Gas Field holding the remainder (31 PJe, net to Strike).10 Strike’s Perth Basin acreage is also prospective for subsurface opportunities such as carbon capture and storage (CCS) and geothermal power generation.11 Refer to page 36 for important information regarding oil and gas reserve and resource estimation. 10 Refer to footnote 9. 11 Geothermal is subject to grant of tenure and CCS investment is subject to establishment of a legislative framework for CO₂ sequestration and grant of tenure. Please see page 35 for Additional Information in respect to South Erregulla Contingent Storage Resource. 12 For more information, see ASX release from 01/09/2022 entitled “Mid West Low Carbon Manufacturing Precinct Update”. STR I KE E N E R GY L I M I TE D AN N UAL R E P O RT 2 0 2 3 FINANCIAL REPORT 9 Note: Refer to important notices on page 36 for Resource and Reserve information. Prospective Resource (2U) Estimate Information & Cautionary statement: The estimated quantities of petroleum that may potentially be recovered by the application of a future exploration and development project(s) relate to undiscovered accumulations. These estimates are un-risked, probabilistically determined, and have both an associated risk of discovery (POS 42% for Erregulla Deep and 54% for Southwest Erregulla) and a risk of development. Further exploration, appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons. DIRECTORS’ REPORT Complementing our vast subsurface assets, this reporting period Strike strategically acquired 3,500 hectares of freehold farming land in the Three Springs Shire12, which sits directly above our South Erregulla field and will be home to Strike’s Mid-West Low Carbon Manufacturing Precinct. The Precinct provides the opportunity to develop dedicated renewable power generation, potential for revegetation or carbon farming land, and an envelope for industrial facilities. 9 O P E R AT I O N S A N D P R O J E C T O V E R V I E W (CONT’D) CONTENTS PAGE Upstream Asset: Walyering FY24 Focus • Sanctioned 33 TJ/d gas plant • Commissioning of facility and first gas sales • Production Licence L23 granted • Drilling of Walyering 7 with target of proving additional reserves • Secured a firm gas supply agreement with Santos WA Energy Limited to supply a total of 36.5 PJ of gas • Construction of Walyering Gas Processing Facility near completion MANAGING DIRECTOR’S REPORT • Secured a condensate processing and offtake agreement with Santos Limited CHAIRMAN’S LETTER FY23 Highlights OPERATIONS AND PROJECT OVERVIEW DIRECTORS’ REPORT FINANCIAL REPORT STR I KE E N E R GY L I M I TE D AN N UAL R E P O RT 2 0 2 3 10 O P E R AT I O N S A N D P R O J E C T O V E R V I E W (CONT’D) CONTENTS PAGE Upstream Asset: Walyering (cont’d) The Walyering gas field sits in Production Licence L23 and is surrounded by Exploration Licence EP 447 which are operated and owned 55% by Strike Energy and 45% by Talon Energy Limited. The field is situated approximately 150 km north of Perth near the town of Cataby in the Mid West. CHAIRMAN’S LETTER Acreage Description Asset Description Walyering Field Schematic 13 FINANCIAL REPORT Maiden 2P Reserves of 32 PJe (net to Strike) and 2C Contingent Resources of 19 PJe (net to Strike) were independently certified by RISC in FY2213. DIRECTORS’ REPORT Strike acquired the acreage in 2019 (through its acquisition of UIL Energy Limited) and shot 90 km² of 3D seismic over the Walyering structure. Our subsequent interpretation suggested the original Walyering wells had not been optimally located and Strike went onto drilling the Walyering 5 and 6 wells in 2021/22. Both wells were successful across several intervals and flowed at rates of 78 MMs