Oil and Gas News

Strike secures $80m for Perth Basin works

Strike Energy is set to raise $75 million, plus an additional $5 million from a share purchase plan (SPP) to deliver a number of activities in the Perth Basin.

Managing director Stuart Nicholls said the highly successful capital raise is an acknowledgement of the unique investment opportunity that is Strike as the company commences its transition to a fully integrated energy, renewable power and fertiliser company.

“The placement proceeds will be used to bring Strike into its maiden free cash flow via the phase one development of the Greater Erregulla gas resources and provides additional funds to deliver the potentially transformational outcomes at South Erregulla and Walyering, that may prove Strike’s additional gas acreage in Perth Basin is host to a series of multi-TCF and globally low-cost resources,” he said.

The $80 million will be used to deliver project construction of phase one of the Greater Erregulla project at West Erregulla in Western Australia.

It will also be used for the following: gas resource addition in the Erregulla region via the 2D major seismic campaign and drilling of South Erregulla; geothermal testing for the proposed mid-west geothermal pilot; progressing the pre-final investment decision for the project Haber proposed fertiliser development; and general working capital and corporate purposes.

“Excitingly these potential gas outcomes are progressing alongside the rapid delivery of project Haber’s development milestones, including securing long term off takers and further state and federal government support. The development is an Australian agricultural imperative and may also produce some of the first green fertiliser in the world via Strike’s proposed Perth Basin geothermal development,” Nicholls said.

Nicholls added that project Haber, in conjunction with what could be Australia’s only base load renewable asset, will cement the company’s role in building a valuable relationship between its low-cost gas resources and Australia’;s transition to a low carbon economy.

The raising marks the first time in 18-months since the discovery of West Erregulla that the company has sort to raise capital from the equity markets.