Strike Energy : 2Q22 Quarterly Activities Report & 5B

29th July 2022

Q2 /22 Quarterly Report

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Perth Basin - Walyering 5

Comments from Managing Director & CEO Stuart Nicholls:

"Strike had another busy operational quarter, delivering drilling and testing results at its fifth, sixth and seventh consecutive successful exploration and appraisal wells. This culminated in Strike booking an additional 91 PJ of new 2P Reserves across its portfolio.

"Strike's Perth Basin track record across multiple geological plays has been nothing short of outstanding, and the Company is now working to convert this upstream success into long-term shareholder value through our innovative integrated gas, renewables and fertiliser development strategy.

"The quarter's activities were also highlighted by booking an independently verified inferred resource across Strike's Mid West Geothermal Power Project, certified Reserves at the Walyering gas field, feedstock confidence at South Erregulla in support of Project Haber and a material upgrade of the Reserves base of the West Erregulla gas field.

"This quarter's successful execution by Strike is expected to translate into our first Perth Basin cashflows early next year, providing the opportunity to exploit Strike's energy supplies in a high pricing environment. In addition, we are making substantial progress towards satisfaction of Project Haber's development milestones and the Company's Net Zero 2030 commitment…It is truly an exciting time for Strike's shareholders."

Highlights

Greater Erregulla

• South Erregulla 1 (Project Haber dedicated feedstock) flow testing of the Kingia discovery performed above expectations, achieving one of the highest sustained flow rates in Perth Basin history with 78 mmscfd on 78/64" choke with FTHP of 2,590 psi. Testing also demonstrated good quality gas composition with low impurities, no sand and no water. Work is underway to test the second gas discovery in SE1 with flow testing of the Wagina Sandstones expected in August 2022.
• West Erregulla 3 drilled to depth with 38m of high-quality net gas pay at an average 13.8% porosity, with no gas water contact encountered. Testing is planned for early August 2022.
• NSAI has independently upgraded the certified West Erregulla gross 2P Reserves by 41% to 422 PJ with the combined gross 2P + 2C growing 6% to 452 PJ.1

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Walyering

• Walyering-5produced outstanding results flowing at 75 mmscfd on 72/64" choke with 2,599 psi FWHP.
• Walyering-6was successfully drilled, and flow tested across the Cadda and Cattamarra formations at a peak rate of 35 mmscfd with 1,900psi FWHP on a 56/64" choke.
• RISC has independently certified gross 2P gas Reserves of 54 PJ and 0.55 mmbbls condensate and gross 2C Contingent Resources of 32 PJ and 0.31 mmbbls.2
• Engineering, approvals, gas contracting and joint venture processes all significantly progressed in order to contemplate a final investment decision in the coming quarter.

Project Haber: Mid-West 1.4mtpa Fertiliser Development

• Strike completed its competitive fertiliser offtake process by agreeing to a non-binding term sheet and exclusive negotiation period with Koch Fertilizer. The offtake is to cover 100% of the 1.4mtpa urea production capacity for a period of up to 15 years.
• Strike launched the Mid West Low Carbon Manufacturing Precinct via the acquisition of 3,500 ha of freehold farming land in the Three Springs Shire below which Strike's 100% owned South Erregulla gas discoveries and carbon sequestration reservoirs sit.3
• Project Haber has been relocated from Geraldton to the newly acquired land which is expected to streamline the environmental approvals, de-risk land access arrangements, and enable Strike to maximise renewables usage within the facility.
• FEED/EPC tender process progressed during the quarter whilst FEED early works continued, including development and preparation of the environmental assessments.

Mid-West Geothermal Power

• Inferred Resource Statement released with a mid-case estimate supporting 203 PJe of net electrical energy, equivalent to 226 MWe of power generation for 30 years.2

Corporate

• Additional $20 million facility was announced with Macquarie Bank Limited. $10 million committed for current operational activities and a further $10 million which is uncommitted and is intended to progress the development at Walyering.
• Existing fully drawn $13 million Macquarie Bank Facility extended by a year.

Strike's acquired 3,500 ha farm to be converted into the

Mid West Low Carbon Manufacturing Precinct

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Results from Q2/22 demonstrate the progress of Strike's unique Net Zero 2030, vertically integrated energy, fertilisers and renewables development strategy. The milestones and acquisitions delivered during the quarter by Strike are the start of, what Strike expects to be, a period of substantial transformation as it makes headway on initial industrial gas production, and its Project Haber fertiliser and Mid-West Geothermal Power developments, all of which are underpinned by Strike's geographically concentrated and physically integrated access to vast quantities of low carbon and low-cost energy.

Domestic Gas

Business

South Erregulla (EP503, STX 100%)

During the quarter Strike completed flow testing of the Kingia Sandstone gas discovery in the 100% owned South Erregulla-1 (SE1) in EP503. The flow test achieved one of the highest sustained flow rates in Perth Basin history with 78 mmscfd on 78/64" choke with FTHP of

2,590 psi over a 5-hour test. The flow rates peaked at 80 mmscfd, which was constrained by well testing equipment. The test focused on the producibility from 15m of perforations across the Kingia Sandstone reservoir at 4,844m (measured depth). The multi-rate test delivered excellent

SE1 Kingia Sandstone on test at peak rates of 80 mmscfd

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results that are reflective of the high- quality gas charged reservoir observed in the well's petrophysical and core analysis. No sand or formation water was observed during the test and the gas stream produced from the Kingia Sandstone was a low impurity dry gas which is in line with gas compositions from the Greater Erregulla region.

Strike will now commence preparation for the production testing of the SE1 over pressured Wagina gas discovery, which will require mobilisation of a workover rig to isolate and reset the tubing at the Wagina Sandstone interval. It is planned for this test to start in late August 2022.

West Erregulla (EP469, STX 50%)

Strike successfully completed the West Erregulla 3 (WE3) re-entry during the quarter, with drilling completing the well down to total depth. WE3 encountered 38m of high quality Kingia reservoir with an average porosity of 13.8%. As a result (and post the balance date) independent advisory NSAI haves incorporated the excellent petrophysical results from the logs from the successful appraisal drilling at WE3 into their subsurface modelling and resource estimation within the Kingia Sandstone. This review has yielded a substantial 41% increase in the quantity of gross 2P sales gas estimated for the field to 422 PJ (211 PJ direct Strike share) and a gross 2C Contingent Resource of 30 PJ (15 PJ direct Strike share).4

The upgrade to the West Erregulla Reserves has come from an increase in the quality and thickness of the field's Kingia reservoir properties, conversion of previous Contingent Resources in the North of the field and extension of the field's boundary to the North-West, which was not previously included in the assessment. This review has also increased the size of the combined Reserves and Contingent Resources of

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the West Erregulla gas field by 6% to 452 PJ gross. Strike's operated interest at West Erregulla has 96.4 PJ of remaining uncontracted 2P Reserves, which is significant during this period of heightened energy pricing.

The West Erregulla Natta 3D seismic campaign remains subject to feedback from the Environmental Protection Authority (EPA) and is still pending a determination on the level of assessment.

The West Erregulla 87 TJ/d Phase 1 development is currently in its environmental permitting process with the EPA. Both the mid and upstream submissions were released for public comment during Q2/22, which has now been completed. Once an EPA decision has been received, Ministerial endorsement is expected a short time thereafter.

The environmental permits remain the critical path for the development at West Erregulla. All substantive expenditure has been pushed out or re-phased until the project receives the necessary approvals and financing is procured. With Strike transitioning into production operations at other assets in its portfolio, Strike will have a broader range of financing options available to it and an improved capital cost profile. Strike still continues to expect that gas production can be brought online in late 2024 notwithstanding the environmental approvals process delays.

Eneabba Deep (EP506, STX 100%)

Strike delayed the acquisition of the Eneabba Deep 2D seismic during quarter due to intense weather systems which could have compromised the quality of the acquired data. As a result, the acquisition is proposed for the coming quarter pending final regulatory approval.

Walyering (EP447, STX 55%)

Walyering remains on track to deliver Strike's maiden cash flows following the successful flow testing of Walyering-5, drilling and testing at Walyering-6 and independent consultants RISC Advisory certifying the field's initial Reserves and Contingent Resources.

The results of the Walyering-5 flow test exceeded expectations with a peak rate of 75 mmscfd on a 72/64" choke with FWHP of 2,599 psi. Additionally, Walyering-6 recorded a maximum rate of 35 mmscfd with flowing well head pressures of ~1,900 psi through a 56/64" choke from the Cadda and Cattamarra formations.

RISC Advisory (RISC) have estimated gross 2P gas reserves of 54 PJ (30 PJ net to Strike) and

0.55 mmbbls of associated condensate (0.30 mmbbls net to Strike)5, which supports the progression of the Walyering gas field into development and construction and recognises the success of the drilling, appraisal, and development programme to date.

RISC has identified growth potential in the Walyering gas field with a further gross 2C Contingent Resource of 32 PJ and 0.31 mmbbls of associate condensate (18 PJ and 0.17 mmbbls net to Strike) and 16 PJ of gas and 0.16 mmbbls of condensate of gross 2U Prospective Resources (9