Strike will issues 130,000,000 fully paid ordinary shares at $0.07 per share to investors, with the capital raised being used to fund drilling of the Jaws-1 well.
“The capital raising provides requisite finds for Strike to execute the Jaws-1 well which is expected to be the catalyst for the commercial definition of the deep coal seam play in the Southern Cooper Basin,”? said Strike Managing Director Stuart Nicholls.
“On success, the Jaws-1 well is expected to allow Strike to book a reserve, commit to the drilling of Jaws-2 and support a Final Investment Decision on the Phase 1 project to support the delivery of gas into the South Australian energy system by the end of 2019.”?
Upon successful execution and testing of the well, Strike hopes to declare the Klebb area of the SCBGP a commercial success.
Surface works and long lead item procurement is currently underway with spud targeted for Q1 2018.
The SCBGP, located in PEL 96 in South Australia’s Cooper Basin, is a Joint Venture between Strike (66.67 per cent) and Energy World Corporation (33.33 per cent and operator).