Strike Energy Ltd

Strike chose Hancock Energy's proposed Belisama plant to process its West Erregulla gas, at a fixed capacity charge, with a term sheet for a loan of up to $30m (needs Macquarie consent). Upstream FID is now FY28 with first gas mid-CY29. South Erregulla approval to generate is now targeted for late Q4 CY26.

material agreement

RISC Advisory reports Walyering 2P reserves up to 16.4 PJ from 13.6 PJ a year earlier, after 5.7 PJ of FY26 production, with maiden Walyering West C1 reserves. 1P fell to 6.1 PJ from 11.2 PJ. A tie-in FID is expected in Q4 CY2026; 16.3 PJ is contracted.

resource reserve update

All 20 generating units at South Erregulla were commissioned on gas; network commissioning by Western Power is due to begin 8 July. CFO Tim Cooper will step down by 29 September 2026 and leaves the company secretary role immediately; a CFO search has begun.

director officer appointment

Walyering West-1 flow test: the C1 sand flowed a stable 11 MMscf/d with low CO2 (~1-2%) and condensate of ~15 bbl/MMscf. A Sub1 flowed 2.8 MMscf/d from a limited reservoir; D1 did not flow and D2-4 produced water. It could be developed through existing infrastructure, pending analysis.

flow test result

CEO Peter Stokes resigned immediately after about 11 months; Shelley Robertson (ex-Fortescue COO, ex-MinRes, ex-Norwest Energy CEO) becomes CEO/MD on 1 June 2026. Following the board review, Chair John Poynton and director Mary Hackett retire 30 June; Nev Power becomes Chair 1 July.

director officer appointment

Walyering West-1 reached 3,650m and discovered a new conventional gas accumulation, with net pay in the A Sub 1 (4.3m), C1 (11.3m) and D1-D4 (11.9m) sands. Wireline fluid sampling failed, so flow testing is next. This resolves the 26%-chance exploration well in Strike's favour.

drilling result

Walyering West-1 spudded 15 April 2026 with the Ensign 970 rig, drilling at 1,006m toward a planned 3,639m. It tests a 46 PJ prospective resource with a 26% chance of discovery; early May results expected. This delivers the mid-April spud target.

drilling spud

Delayed certification delivered: West Erregulla 2P reserves rise 19% to 251 PJ net to Strike (from 211 PJ in 2022), audited by Miller & Lents. Some Erregulla Deep prospective resource converts to contingent; High Cliff contingent resources revised down.

resource reserve update

All approvals are received for Walyering West-1 and well pad construction has begun, with spud expected by mid-April 2026. It tests a 46 PJ (2U) prospect with a 26% chance of discovery. About 19.6 PJ of contracted gas remains.

drilling scheduled

Triangle Energy (TEG) has sued Strike's subsidiary Talon (L7) in the WA Supreme Court over its withdrawal from the L7 joint operating agreement and farmout obligations, claiming $3,838,780 damages. Strike will defend. This turns the open L7/EP437 exit costs thread into a dispute.

regulatory community update

FY25 results: sales revenue $72.7m (FY24 $45.6m), underlying EBITDA $41.6m, operating cash inflow $42.6m. Net loss after tax $157.3m includes a $103.3m Walyering impairment, confirming the earlier $85m-$108m estimate. Cash at 30 June was $41.1m.

half year report

Tranche 2 of the Carnarvon placement and the share purchase plan completed: 300.4m new shares at $0.12 raised $36.0m, ($34.3m from Carnarvon, $1.7m from the plan). Funds go to South Erregulla, West Erregulla, Walyering West and Ocean Hill wells. Resolves the Carnarvon open thread.

capital raising announcement

RISC certified Ocean Hill 2C contingent resources at 180 PJ (down from 306 PJ) plus 190 PJ unrisked prospective resource. New Ocean Hill South structure adds 678 PJ unrisked prospective. Ocean Hill-2 now targeted 2H CY2026, depending on rigs and Strike's capital position.

resource reserve update

Walyering reserves cut: 2P sales gas falls to 13.6 PJ from 38.5 PJ, 1P to 11.2 PJ from 23.2 PJ. Walyering-7 well performed very poorly. Impairment of $85m-$108m plus $19m deferred tax expected. About 24 PJ is contracted, leaving a shortfall; Walyering West well planned 1H CY2026.

resource reserve update

Carnarvon Energy will invest up to $88m at $0.12 per share (19.7% discount to 10-day average) for up to 19.9% of Strike, becoming largest shareholder. Tranche 1 is about $52m; tranche 2 needs shareholder approval. A share purchase plan of up to $10m is also planned.

capital raising announcement

Strategic review completed under new CEO Peter Stokes. Strike will deliver the 85 MW South Erregulla plant by 1 October 2026, progress the 87 TJ/d West Erregulla development with Hancock, seek partners for Ocean Hill and Kadathinni, and exit L7/EP437 and geothermal.

other

Triangle says Strike and Echelon have given notice they are withdrawing from L7 and EP437 and will not fund the third well. Triangle will seek new partners. This ends Strike's 25% involvement after two dry holes; costs still under discussion.

farm in farm out completion

Announcement of a Managing Director and CEO appointment; the text is not readable beyond bullet markers. The later strategic review release names Peter Stokes as Managing Director and CEO, resolving the CEO search (inference from that release).

director officer appointment

Interpretation of the Ocean Hill 3D seismic (EP495, 100%) shows multiple well locations and possible upside to the 306 PJe contingent resource; a 3-well appraisal is expected. Kadathinni (EP503) now has prospective resources of 385 PJ best estimate; Tathra-1 targeted drill-ready in 2026.

resource reserve update

Triangle reports Becos-1 reached 1,107m with no economic hydrocarbons, only a 2m low-porosity gas sand judged immoveable, and was plugged and abandoned. Strike holds 25% of EP437. This is a dry hole after Booth-1.

drilling result

Triangle spudded Becos-1 in EP437 on 12 April 2025, resolving the timing question. Strike holds 25%. Planned depth is 1,164m, with logging expected around 20 April. Target unchanged: best case 5 MMbbl, 20% chance of success.

drilling spud

Strike signed definitive documents with Macquarie for the $217m financing package, of which $162m is committed and the rest needs further credit approval. Earthworks have started at South Erregulla for the 85 MW power station, moving the project into construction.

debt financing

Macquarie gave credit approval for $162m of committed funding within the $217m package, resolving the November approval pending. It includes $113m term debt to refinance existing debt and fund South Erregulla, plus $49m for engines. The remaining $55m needs further approval.

debt financing

Text not readable. Title indicates a CEO transition and strategic review; later announcements say Stuart Nicholls departed after 8 years and Jill Hoffmann became Acting CEO while the Board runs a strategic review of the project portfolio.

director officer appointment

Walyering East-1 (EP447, 100%) logged a potential gas discovery: at least 13.4m net gas pay in the D-Sands, 16% maximum porosity. The A to C Sands were not worth testing, and the well was deepened to 3,858m. No gas samples were obtained, so a production test must confirm a discovery.

drilling result

Strike took an unconditional FID on the 85 MW South Erregulla peaking gas power station, with $137m budgeted cost and commissioning before October 2026. Modelled pre-tax NPV is $250m, IRR 27%, with utilisation raised from 18.8% to at least 30%.

drilling result

Macquarie approved a first $60m tranche for South Erregulla procurement and gave terms to lift the funding package from $153m to $217m, adding a $64m 7-year equipment lease. The lease is uncommitted until credit approval, expected within a month.

debt financing

The federal environment department approved the West Erregulla upstream development under the EPBC Act. Strike calls it the last key environmental approval needed by the JV (Strike 50%, operator) and gas plant provider AGIG, clearing the way toward the targeted FID.

regulatory community update

Erregulla Deep-1 flowed Kingia gas at a stabilised 53 mmscfd (max 60) at 5,515 psi, limited by equipment; absolute open flow estimated at 400-450 mmscfd. CO2 ~4%, no sand or water. High Cliff test was inhibited. Well suspended as a future West Erregulla producer.

flow test result

AEMO awarded South Erregulla the full 85 MW capacity credits and requested Network Access Quantity, and set the 2026 capacity price at $216,092/MW a year, over $18m in the first year. This resolves the October NAQ condition ahead of the November 2024 FID, which still needs Macquarie close and contracts.

regulatory community update

RISC certified Walyering at 57 PJe of 2P Reserves plus 2C Resources, down from 58 PJe 2P and 34 PJe 2C in 2022. 2P Reserves fell to 41 PJe after seismic reprocessing and Walyering-5/6 revisions, and the Walyering-7 tie-in was on track for end September.

resource reserve update

WA lifted its onshore gas export ban, letting Strike export up to 20% of production from its pre-FID Perth Basin projects until end 2030. Strike calls it a strong positive, with premium export pricing possible, but will first engage government on how it works.

regulatory community update

Erregulla Deep-1 made two gas discoveries: 26m net pay in Kingia and 2m in High Cliff, with lower CO2 than West Erregulla. At 5,225m it is Australia's deepest onshore well. Flow testing is due this month. Extends the Permian play east toward Strike's 100% acreage.

drilling result

Production Licence L25 was granted over West Erregulla (Strike 50% operator), a key tenure step. Final investment decision for the 87 TJ/d development is still targeted for later this year. Strike says three of four Gas Acceleration fields now have approvals and tenure.

regulatory community update

AEMO awarded the South Erregulla peaking plant 85 MW of Certified Reserve Capacity for 2026. Strike must pay a $4.9m deposit. Consultants model $180-230k per MW, or $15-20m a year, with capacity price due in September. FID in November 2024 now awaits network access quantity in October.

regulatory community update

Strike confirms Booth-1 (Strike 25%) reached 2,812m with no moveable hydrocarbons, a dry hole. It was drilled ahead of schedule and will be plugged and abandoned. Resolves the Booth-1 thread.

drilling result

Walyering-7 finished 40 days of testing, with a peak of 14 TJ/d gas and 900 bbl/d condensate, and condensate-gas ratio higher than expected. D-Sands remain untested. The well is shut in for permanent tie-in, then Walyering-6 deeper testing, before RISC's assessment.

flow test result

Strike signed a $48.5m fixed-price contract with Clarke Energy for twenty 4.5 MW gas engines for the South Erregulla 85 MW peaking plant, in line with its mid-case cost estimate. Termination and suspension exposure is limited ahead of the November 2024 FID, which still depends on AEMO outcomes.

contract award

Strike confirms the L7 joint venture has spud Booth-1 in the north Perth Basin, planned to 2,900m in about three weeks. Strike holds 25%. Duplicates Triangle's announcement; Strike's own cost is not stated.

drilling spud

West Erregulla received its WA environmental Ministerial Statement for upstream and midstream works, ending a process of more than three years. Strike calls it a major de-risking event. Federal EPBC approval is expected this quarter; FID remains pending.

regulatory community update

Erregulla Deep-1 has spud in EP469 (Strike 50% operator, Warrego 50%), testing a closure east of the West Erregulla reserves. Total depth is expected in about 40 days. This is the mid-2024 well flagged earlier.

drilling spud

Strike applied to AEMO for capacity credits for an 85 MW gas peaking power plant on the Precinct, fuelled by South Erregulla's 37 PJ 1P reserves, with operations by October 2026. Targets an unconditional FID in November 2024; modelled revenue $40-50m a year. This is a new development path.

material agreement

After the disappointing SE-2/SE-3 tests, South Erregulla was re-certified at 82 PJ of 2P plus 2C (45 PJ 2P Kingia, 37 PJ 2C Wagina), a large cut. The western side is downgraded to Prospective Resource. Resolves the reserves review.

resource reserve update

Terms agreed with Macquarie for a 5-year $153m package: a $60m facility refinancing $16.3m drawn debt, plus $53m South Erregulla and $40m West Erregulla facilities. The $93m of new debt needs FID and Macquarie internal approvals. Replaces the earlier uncommitted $80m contingent facility.

debt financing

Walyering-7 found 23m of net gas pay at 16% average porosity in a new compartment north-east of the producing field. Most is in the A Sand (22m). It still has to be flow tested. The result feeds the RISC reserves review.

drilling result

Walyering has paid back its ~$30m development cost just 8 months after start-up, with ~$47m gross income received so far. Walyering-7 reached 4,035m in 18 days, five days ahead of plan, with positive gas observations. Logging and evaluation are still to come.

drilling progress report

South Erregulla-3 failed to flow when tested in the Kingia Sandstone, despite earlier-booked gas pay; Strike interprets a possible gas-water contact. The CEO called it disappointing. Testing moves to up-dip SE-2 within 5 days, and reserves will be reviewed afterwards.

well test result

Walyering reached its 33 TJ/d nameplate gas rate and 265 bbl/d condensate on 24 December 2023, within 90 days of start-up. Strike also signed a firm take-or-pay deal with Alinta for 3.4 PJ over about 2 years from February 2024, adding to the Santos contract.

production update

Strike's acquisition of Talon was implemented: all Talon shares transferred to Strike, and 322,268,051 new Strike shares (0.4828 per Talon share) were issued. Talon directors resigned and Nicholls, Hackett and Hoffman joined its board; delisting expected 28 December 2023.

business combination

Strike's acquisition of Talon became effective, giving Strike 100% of Walyering's free cash flow and, per its own statement, 1,022 PJ of Perth Basin 2P reserves and 2C resources. Talon holders get 0.4828 Strike shares each, issued 27 December 2023.

business combination

The Federal Court approved the scheme under which Strike acquires Talon for 0.4828 new Strike shares per Talon share. Talon shares are expected to be suspended after trading on 14 December, with implementation on 27 December 2023.

business combination

South Erregulla-3 found 13m of net gas pay in the Kingia Sandstone, confirming the field continues to the northwest, plus 75m of net potential CO2 storage sand. With SE-2, it will feed an independent review for converting contingent resources to reserves. Flow tests are expected from late January 2024.

drilling result

Strike signed foundation gas sales for South Erregulla Phase 1: 36.5 PJ to Worsley Alumina JV (South32) over 5 years, and 5.75 PJ to Perth Energy (AGL) over 3 years, covering about 60% of capacity. Both depend on a final investment decision. This follows the earlier negotiation with a major industrial user.

material agreement

South Erregulla's Phase 1 40 TJ/d development received its primary environmental approval, completing the primary government approvals needed before a final investment decision can be considered. SE-3 spud 21 October and had drilled to 4,373m, with heavy gas seen in the Beekeeper Formation.

regulatory community update

Walyering began firm gas sales on 1 October at a steady 20 TJ/d, with condensate around 200 bbl/d. Final cost was $30m gross ($16.5m net to Strike), higher than forecast, with payback expected in about two quarters. Strike offered Talon a letter of comfort to lift its facility if needed.

production update

South Erregulla-2 found 16m of net gas pay in the Kingia Sandstone at 4,843m, extending the 100%-owned field south and west. It also found 76m of potential CO2 storage reservoir. Together with SE-3 results, it may support converting contingent resources to reserves.

drilling result

The Walyering gas field began exporting commissioning gas on 25 September 2023, with firm sales to Santos due in early October. Strike (55%) calls it its move from explorer to producer, ending the construction delays flagged in July.

production update

South Erregulla production licence L24 was granted, so Strike can now file the safety case and environment plan needed for Phase 1 construction after a final investment decision. The SE-2 appraisal well spudded on 22 August and has drilled to 4,259m.

regulatory community update

Despite the earlier breakdown, Strike signed a binding deal to buy all of Talon by scheme: 0.4828 new Strike shares per Talon share (implied $0.212, ~21% premium), leaving Talon holders with ~11%. Strike gives a $6m convertible facility, and Talon's Mongolian asset is to be demerged. This would give Strike 100% of Walyering.

business combination

Strike says talks to buy Talon at 0.4828 Strike shares per Talon share, plus a $6m interim funding facility, ended without agreement after due diligence and negotiation of the facility. Strike will keep operating Walyering as normal.

business combination

Talon says Strike made an unsolicited, non-binding proposal on 19 July to acquire it for 0.4586 Strike shares per Talon share (about 10.8% of the merged group), with Talon's Mongolian assets demerged. Strike withdrew it on 23 July when Talon asked for more time.

business combination

Strike finished gas marketing for South Erregulla and is negotiating a 5-year, 20 TJ/d binding supply deal with a major WA industrial user. Enerflex is engineering the 40 TJ/d Phase 1 plant, estimated at $90m (excluding export pipeline), with late-2024 start-up targeted. Neighbouring Trigg-1 reduced appraisal risk.

material agreement

Strike signed the Macquarie $153m financing package first announced in December: $33m refinanced, a $40m committed drilling facility, and an $80m uncommitted development facility. Cash is $143m. Macquarie options were cut to 62.1m at 40c. This resolves the earlier unreadable financing item.

debt financing

Strike plans South Erregulla in three phases, starting with a 40 TJ/d modular plant at the Precinct targeted for late 2024, on 128 PJ of 2P reserves. A 3-well appraisal campaign from July 2023 aims to convert up to 271 PJ of 2C. Production licence applications are lodged.

drilling scheduled

Strike launched a 'fully funded' gas acceleration strategy: 5 wells and seismic, aiming for up to four gas sources online by end-2025, funded after ~$136m from selling its Warrego shares. Funding also counts an $80m Macquarie facility that is still uncommitted.

other

Strike closed its Warrego bid holding ~30.4% (377m shares) and will accept Hancock's $0.36 cash offer, realising $136m. That resolves the takeover contest and, with earlier funding, gives $203m available; Hancock becomes West Erregulla JV partner holding Warrego's 50%.

asset acquisition disposition

Hancock's $0.36 cash offer became unconditional after its 40% acceptance condition was met, taking Hancock to 52.17% and control of Warrego. This effectively decides the contest against Strike's scrip bid; the Strike board is reconsidering its position (text truncated).

business combination

Strike secured Ensign 970 rig slots for 2023-24, shared with Mineral Resources' subsidiary. Two South Erregulla (100%) updip appraisal wells start mid-2023, targeting conversion of 178 PJ 2C to reserves; up to three wells follow in early 2024 at Southwest Erregulla, Erregulla Deep and possibly Ocean Hill.

drilling scheduled

Strike waived its last defeating condition, so its one-for-one Warrego offer is now unconditional. Strike and associates hold 20.57% of Warrego, so acceptances will lock in rather than depend on a threshold.

business combination

Talon reports Production Licence L23 for Walyering was granted to the joint venture (Strike 55% operator, Talon 45%). Procurement is ~98% complete and start-up is still targeted by end of Q1 2023, a key approval won on schedule.

regulatory community update

Warrego lodged its target's statement responding to Hancock's unconditional cash takeover bid. It also set out the directors' views on Strike's competing scrip offer, and said both bids were now open for its shares.

business combination

Strike will build its Greater Erregulla gas plant at its own Precinct and not extend the Phase 1 arrangements with Warrego and AGIG past end-2022. It also ended the gas balancing agreement with Warrego. Reverses the earlier 87 TJ/d EP469 plant plan; a third-party builder is yet to be found.

material agreement termination

Strike formally lodged its bidder's statement for the off-market takeover of Warrego, offering one Strike share per Warrego share. This turns the Dec 2022 proposal into a formal bid against Hancock's cash offer; offer dates were still blank, so it was not yet open.

business combination

The EP469 JV (Strike 50%, Warrego 50%) formally approved a budget for Erregulla Deep-1 and Southwest Erregulla-1, plus 2D seismic reprocessing. Rig slots are being negotiated for late 2023/early 2024, committing the partners to the December 16 exploration targets.

drilling scheduled

Warrego noted Strike's plan for an off-market takeover at 1 Strike share per Warrego share, competing with Hancock's earlier $0.28 per share offer. Bidder's Statement expected by year end. Warrego holders told to take no action until its Target's Statement, due by 29 December.

business combination

Strike tabled a two-well exploration program for late 2023/early 2024: Southwest Erregulla (272 PJ gross best-case prospective) and Erregulla Deep (278 PJ). Combined 550 PJ gross, ~330 PJ net at about 60% direct and indirect. Undiscovered, with discovery chances of 54% and 42%.

resource reserve update

The Walyering JV (Strike 55%, Talon 45%) signed a binding five-year deal to supply 36.5 PJ to Santos-WA from Q1 2023, resolving the open gas sales agreement. Procurement is 95% done; Strike took over some pipeline scope, adding at least $2.4m gross capex.

contract award

Strike secured about 19.9% of Warrego by swapping its own shares 1:1 with Warrego holders, up from ~7.6% and making it Warrego's largest holder. Lifts its direct and indirect interest in EP469 (West Erregulla) to about 60%. Strike says it has formed no intention on a future transaction.

asset acquisition disposition

Warrego signed a scheme deed with Beach Energy, competing with Strike's proposal. Strike says its offer is worth A$0.217 per share, 8.5% above Beach's, and is weighing options. It may move Erregulla gas plant to the Precinct and speed up South Erregulla regardless.

business combination

Warrego disclosed a non-binding proposal from Strike to buy the rest of Warrego by scheme: 0.775 Strike shares per Warrego share, plus any net Spanish asset sale proceeds. Warrego holders would own about 30.5% of the combined group. Due diligence access granted; no certainty of a deal.

business combination

Strike confirmed its Warrego merger approach: first offer of 0.7142 Strike shares on 16 Sep, revised to 0.7521, then an agreed ratio of 0.7750 that Warrego's board intended to recommend on 27 Oct. Implies A$0.186 per share, a 40.6% premium; Strike holders would own ~72%. Binding documents still pending.

business combination

Technip Energies was awarded the Project Haber FEED (estimated 9-10 months) and Wood the owner's engineering. Environmental referrals went to the EPA. FEED formally starts once licensor agreements are in place, expected next quarter. Advances Haber's pre-FID work.

contract award

NSAI certified 93 PJ of 2C resources in the Wagina at SE1, lifting SE1's total to about 399 PJ and Strike's Perth Basin total to 982 PJ. Wagina flow peaked at 35 mmscfd but sustained only 2 mmscfd, which Strike attributes partly to leftover fluid in the well.

resource reserve update

RISC certified 300 PJ of 2C contingent resources at the 100%-owned Ocean Hill field, with 1C up over 700% to 185 PJ, using Walyering data. Strike says its portfolio now totals about 889 PJ of 2P plus 2C.

resource reserve update

NSAI certified about 306 PJ of combined 2P reserves and 2C contingent resources (100% Strike) in the Kingia Sandstone at South Erregulla from SE1 alone. Strike's Erregulla-region total reaches 532 PJ, with Wagina testing still to add volumes.

resource reserve update

Strike raised $30m via a placement of 127,659,575 shares at $0.235, for Walyering, Haber, South Erregulla drilling and the Precinct land ($7.7m). Priced below the $0.30 April 2021 raising, so it dilutes existing holders. Trading resumes after a halt.

capital raising announcement

WE3's final test achieved a stabilised 83 mmscfd at 3,474 psi, limited by surface equipment. Pressure rebuilt to near original reservoir level after only 3 hours shut-in, indicating a large connected gas volume. This supports the July reserves upgrade for the north of the field.

well test result

Strike and Talon sanctioned Walyering development at $14.4m gross ($7.9m Strike share), nine months after discovery. First gas sales are targeted Q1 2023, with Macquarie providing $10m to fund Strike's share. This resolves the open JV investment decision on Walyering.

material agreement

NSAI raised West Erregulla gross 2P reserves 41% to 422 PJ (211 PJ Strike direct) after WE3 results, from the earlier 300 PJ. Gross 2C is 30 PJ. Strike's direct and indirect interest is about 54%.

resource reserve update

RISC certified Walyering's first reserves: gross 2P 54 PJ (30 PJ net to Strike's 55%) plus 0.55 mmbbls condensate, with 32 PJ 2C. Development is estimated at $14.2m for a 33 mmscf/d facility, with a JV investment decision to be sought.

resource reserve update

Walyering-6's Cadda discovery flowed at up to 35 mmscfd, and the Cattamarra C and D sands contributed gas. The B sand produced water so is unsuitable for initial production. W6 will be completed for production; reserves estimate due within a week.

well test result

West Erregulla-3 found 38m net pay in a 60m gas column in the Kingia, porosity averaging 13.8%, no gas-water contact. Reservoir is the best seen in the field. The High Cliff secondary target was poor. NSAI will review reserves.

drilling result

Macquarie agreed an extra $20m facility: $10m committed, $10m uncommitted for Walyering development. The existing $13m drawn debt is extended to November 2023, with 20.7m options at 34c. Haber pre-FID funding is to be pursued at project level.

debt financing

Strike signed a binding deal to buy 3,500 ha of freehold land above South Erregulla and will move Project Haber there. It cites about A$85m lower capital cost by avoiding a 105km pipeline, plus up to 170MW of potential on-site renewables.

asset acquisition disposition

SE1 Kingia flowed a peak 80 mmscfd and a sustained 78 mmscfd over 5 hours, constrained by test equipment, with no sand or water and low-impurity gas. This supports South Erregulla as Haber's gas source; a Wagina test follows.

flow test result

Strike chose Koch Fertilizer as preferred bidder and signed a non-binding term sheet for 100% of Project Haber's 1.4 mtpa urea over 10-15 years. A binding agreement is still to be negotiated and depends on Haber's final investment decision.

material agreement

Independent inferred geothermal resource for the Mid-West project: 203 PJe mid case (226 MWe over 30 years) over the 1,826 km² permit application area. The permit is still pending, and the resource is untested and undrilled.

resource reserve update

Walyering-5 final test: comingled flow peaked at 75 mmscfd, the third highest rate in Perth Basin history, with A-Sand stabilised at 52 mmscfd. Strike is looking at lifting facility capacity to 35 mmscfd. Walyering-6 is drilling at 2,130m.

well test result

March quarter report: SE1 confirmed a Kingia gas discovery (14m net pay in a 52m gas column, ~6,800 psia, no water contact) plus the Wagina discovery. A Kingia flow test is planned for mid-May. Also covers Walyering results, the Perth Energy sale and Haber progress.

quarterly activities report

Walyering-5 interim tests were strong: C-Sand stabilised at 27 mmscfd and D-Sand at 10 mmscfd, with B-Sand peaking at 33 mmscfd. Walyering-6 has spud, and Momentum Engineering was awarded facility design for up to 30 mmscfd.

well test result

Strike signed a gas sales agreement to supply 14.6 PJ to Perth Energy (AGL) over 5 years, expected to start in 2024, from its Perth Basin gas. It is conditional on usual greenfield-development conditions. Strike's first named domestic gas sale of this scale in the provided history.

material agreement

SE1 confirmed a conventional gas discovery in the Wagina Sandstone: 160m of gas-charged sand, 16m net pay in high-quality flow units and 61m lower-quality gasifier, pressure over 7,500 psi. Strike calls it an upside to the main Kingia target; no resource figure yet, flow testing needed.

drilling result

South Erregulla-1 spudded 15 January 2022 and was drilling at 1,045m. Strike expects the Kingia Sandstone at 4,369m, up to 200m shallower than at West Erregulla-2. The well, 100% Strike, targets about 350 PJ to supply Project Haber.

drilling spud

Project Haber won a $2m federal Supply Chain Resilience grant and WA Lead Agency Status. Strike has committed to negotiate a full-form offtake for 100% of the 1.4 mtpa, conditional on South Erregulla-1 success. SE1 spud targeted late December; FEED early works and tender started.

regulatory community update

Walyering-5 confirmed four gas-charged sands with 51m net pay, under 1% CO2, and results Strike says exceeded pre-drill expectations. No gas-water contact seen yet. A Q1 2022 production test will feed an independent resource statement.

drilling result

Walyering-5 spudded at 16:15 on 14 November 2021 and was drilling ahead at 483m, aiming for 3,138m subsea to test updip potential of the Walyering wet-gas discovery. This follows the earlier delay waiting for the rig. Strike holds 55%, Talon 45%.

drilling spud

NSAI certified West Erregulla's maiden Perth Basin reserve: 300 PJ gross 2P (150 PJ net to Strike), up to 372 PJ 3P, plus 128 PJ 2C and 198 PJ 2U. It supports Phase 1 and bank mandates, but the text says the resource base is lower than Strike's 2019 estimate.

resource reserve update

Haber's Pre-FEED study is complete: base capital estimate US$1.64bn (±25%), 6% below the January 2021 estimate. Haldor Topsoe autothermal reforming cuts gas need to 80 TJ/d. Shortlisted buyers negotiate binding terms for all 1.4 mtpa in Q4; FEED follows success at SE-1.

other

WE5 flowed only 13.1 mmscf/d instantaneous and 5.1 mmscf/d over 77 hours, which Strike attributes to near-wellbore skin and an ineffective completion. A recompletion and retest are planned, and NSAI resource and reserve work now begins.

well test result

Strike agreed to sell its Cooper Basin PEL96 interest (Klebb and Jaws) to Talon-majority-owned Greenflame for a nominal fee, releasing it from commitments and rehabilitation. Settlement needs third-party consents. No loss expected, as the asset was fully impaired in June 2020.

asset acquisition disposition

Round 2 of Project Haber's urea offtake closed with 4.75 mtpa of firm proposals of up to 15 years, against 1.4 mtpa of planned output. Strike has short-listed buyers to negotiate binding deals and appointed Azure Capital for the equity sell-down.

material agreement

Strike bought 8.16% of partner Warrego Energy for about $22m, lifting its economic interest in West Erregulla to 54% from 50%. It says it has no intention on a further transaction with Warrego and remains fully funded.

asset acquisition disposition

WE4 flowed 35 mmscf/d over 46 hours from 75m of Kingia, below WE2's 69 mmscf/d, with some low-salinity water. Strike calls it a perched water lens; its joint venture partner interprets it differently. WE4 stays a Phase 1 producer.

well test result

Strike laid out its second-half 2021 Perth Basin program: South Erregulla-1 spuds in October, Walyering-5 in September under Talon's free carry, and EP506 was granted. A non-binding MOU covers 15-20 TJ/d of South Erregulla gas for 5 years from 2024.

drilling scheduled

Title says Strike committed to gas plant procurement at West Erregulla; the body text was not provided. The Q2 report says long lead items were committed to secure gas delivery for early 2023. No cost or supplier is available here.

contract award

Text not readable beyond headline: the title says WE5 confirms a high quality gas resource, but no figures were provided. Later material cites 32m net pay at 10% porosity at WE5 (from the July presentation). Treat as a positive appraisal result.

drilling result

Strike signed binding documents to buy Mid West Geothermal Power, moving on from April's non-binding term sheet. The first payment is 6,161,430 shares on completion, which has not yet occurred. A heat survey is under way, and mapping to pick a pilot site should take about a year.

material agreement

West Erregulla 5, the final appraisal well, spudded on 8 May and finished its first hole section at about 1,567m. At WE4, 75m of Kingia was perforated and the flow test began. WE5's design drops one casing string to drill faster.

drilling spud

The SPP drew about $30m of acceptances against the $5m target, so the board doubled it to $10m at $0.30. Applicants get about a third of their application, with up to 33.3m shares issued 10 May. Total raising is now about $85m.

capital raising announcement

Strike won a $200,000 WA Government EIS grant toward South Erregulla-1, now being prepared for a Q4/21 spud, and EP505 was granted. Using the WE4 results, it raised South Erregulla's assessed chance of success to 61% from 57%; trap size and shape remain the main risks.

regulatory community update

Strike raised $75m through an institutional placement of 250m new shares at $0.30, a 20% discount to the last price of $0.375, plus an SPP of up to $5m at the same price. With about $10m cash at 1 March, it targets about $90m of funding.

capital raising announcement

Equity raising and corporate update presentation. The text provided is mostly garbled graphics, so the raise size, price and terms are not readable.

capital raising announcement

Technip Energies began pre-FEED on Project Haber, refining a capital cost currently put at US$1.74bn. Strike says expressions of interest for the 1.4 mtpa urea exceed supply, with more than 12 buyers taking part; no binding offtake yet.

material agreement

West Erregulla 4 reached 5,069m and found a 155m Kingia section with 28m net pay, 11% average porosity (up to 19%) and no gas-water contact, extending the field. Strike says it materially de-risks Phase 1; a flow test is planned and WE5 follows.

drilling result

Strike signed a non-binding term sheet to buy Mid West Geothermal Power, giving it the only Perth Basin geothermal rights (3,500 km2). It estimates up to 350MW for at least 30 years. This adds a renewables line to its gas and urea plans; not yet binding.

asset acquisition disposition

Strike won Perth Basin block L20-3 in the WA 2020 acreage release, the last unheld acreage in the Permian Gas Fairway. Its Eneabba Deep lead may have closure over 20 km2; no resource estimate yet. Extends the contiguous acreage around West Erregulla and South Erregulla.

regulatory community update

Kevin Craig, ex-Shell, becomes Chief Operating Officer from April 2021, replacing Pax Barkla, who leaves as Strike moves its head office from Adelaide to Perth. Craig is granted 1m options at $0.35 expiring 31 July 2022.

director officer appointment

West Erregulla 4 spudded over the weekend after the rig moved from West Erregulla 3, which was suspended with cement plugs after hitting an over-pressured gas column. Plans to take WE3 to final depth are still being developed.

drilling spud

WA granted exploration permits EP503 and EP504 (converted from EPA82 and EPA98), opening South Erregulla work. A ~140km Maior 2D seismic survey is awarded to Velseis for 1H21. This follows the earlier-flagged permit applications. WE3 results are said to support 'filled to spill' structures.

regulatory community update

Strike launched Project Haber, a proposed 1.4 mtpa urea plant near Geraldton costing about A$2.3bn, using up to 628 PJ of Greater Erregulla gas over 20 years. It has an option to lease 60 hectares; offtake tender in Q2/21, Strike expects to keep a ~30% carried interest.

other

Mary Hackett, ex-GE Oil & Gas Australasia CEO and Woodside executive, joins as a non-executive director. Jody Rowe retires at the 2020 AGM. Hackett is to get 5m options at $0.35, subject to shareholder approval.

director officer appointment

Strike secured three Ensign Rig 970 slot options for CY21 to drill Walyering and South Erregulla, targeting 1,686 PJ of prospective resource (Strike share). Trieste 3D data lifted South Erregulla's chance of success from 50% to 57%.

drilling scheduled

Strike secured a $28m two-year secured Macquarie facility for West Erregulla appraisal and long-lead items: $13m committed, $15m tied to drilling milestones. Macquarie gets 35m options at 29 cents. Strike was previously debt free.

debt financing

Warrego and Strike signed a binding Heads of Agreement on joint West Erregulla development: Phase 1 plant raised to 80 TJ/d, FID now targeted by end Q1 CY2021, first gas mid-2022, WE-5 approved. This eases the Warrego dispute, though FID slips from end-2020.

joint venture update

Rig 970 is rigged up and West Erregulla 3 began drilling on 21 September 2020, starting the appraisal campaign planned for up to three wells to about 5,000m. This is the spud that was targeted for late August/early September.

drilling spud

Strike signed definitive documents for the 45% Walyering farm-out to Talon, which paid a $1m bond against its $6m carry. Ministerial approval is still needed. The appraisal well is planned for 2021, with the well design and location done.

farm in farm out agreement

CSBP converted its gas option into a firm 100 PJ offtake at 25 TJ/day for about eleven years, with supply from West Erregulla Phase 1 expected in 1H/2022. It is subject to a final investment decision and gives a base for project financing.

material agreement

Strike settled its R&D dispute with Innovation & Science Australia. It will proceed with about 90% of its original FY18 Jaws claim, with a minor adjustment of about 4% of the amount received for FY16. This resolves the open appeal thread and reduces the repayment risk.

regulatory community update

Strike agreed terms to farm out 45% of Walyering (EP447) to Talon Petroleum, which will free-carry the first $6m of a proposed $9m appraisal well in 2021. Strike keeps 55% and operatorship. Subject to final documents and ministerial approval. Follows the June resource upgrade and the farm-out plan.

farm in farm out agreement

Strike expects a non-cash impairment of about $91m at 30 June 2020, fully writing down its Cooper Basin assets. It says Jaws is unlikely to recover its carrying value. It will keep the permits and continue the Jaws pilot, expensing costs.

asset acquisition disposition

The West Erregulla joint venture contracted Ensign's 970 rig for up to three wells. WE-3 is due to spud in Q3/20, WE-4 soon after, and WE-5 needs a joint venture decision by 30 November 2020.

contract award

Headline indicates a partnership with AGIG on gas infrastructure; the text is not readable. Later quarterly report says AGIG was selected to build, own and operate the Phase 1 gas processing plant.

material agreement

The EP469 joint venture (Strike 50%, Warrego 50%) approved the appraisal plan and budget. WE-4 is now firm alongside WE-3, with WE-5 contingent on a decision by November 2020. Drilling is planned from Q3/2020, with FID still proposed for Q4/2020.

joint venture update

Warrego (Strike's 50% partner in West Erregulla) rejects an unsolicited Strike proposal to buy it for 1.2 Strike shares per Warrego share. Warrego says it undervalues the company and will not engage. Strike's bid would have given Warrego holders ~31%.

business combination

Strike announces the South Erregulla prospect next to West Erregulla, with a best-estimate 1.6 TCF prospective resource (Strike share, gas in place). It is undrilled and unvalidated, with 3D seismic still to come. Walyering 3D has also identified drillable targets.

resource reserve update

The Kingia flow test reached 69 mmscf/d, the second-highest Perth Basin rate. The 1.185 TCF gross 2C resource (593 BCF net) was booked, and Wagina prospective resource rose to 273 BCF P50. Jaws gas is ~40 mscf/d, with water steady at ~300 bbl/d.

quarterly activities report

Strike raises $30m by placing 130,434,783 shares at $0.23, a 4.2% discount, plus a Share Purchase Plan for up to $5m. Funds go to two West Erregulla appraisal wells, Perth Basin 3D seismic and Jaws. The previous raise was at $0.065 in May.

capital raising announcement

Strike upgrades the Kingia discovery to 58m net pay (from 41m), with 6,814-6,828 psia pressure and 102 mD permeability. Gas samples were recovered. A contingent resource will be booked after a flow test within weeks. High Cliff pressure tools could not seal.

resource reserve update

Strike reports a High Cliff gas discovery at WE-2: at least 22m gross column, 10m net pay, porosity up to 16%. Drilling finished at 5,100m, completing Wagina, Kingia and High Cliff discoveries. Casing and flow testing come next; no resource is booked yet.

drilling result

Strike reports a Kingia gas discovery at WE-2: at least 97m gross gas column, 41m net pay and porosity up to 19%, with no gas-water contact found. This is the primary target; no resource is booked until further data and testing.

drilling result

Strike announced a significant gas discovery in the Wagina sandstone at WE-2: about 74m gross, with 14.2% porosity over a 2.5m logged interval. Poor hole condition prevented pressure and sample data, so no resource is booked until a flow test. Primary Kingia-High Cliff target is still to drill.

drilling result

WE-2 hit the Wagina formation at 4,102m, with high-pressure gas (over 98% methane) flowing strongly enough to light the rig flare. Drilling paused to rebalance the well. Strike says this matches pre-drill modelling but lacks data to evaluate it.

drilling result

The Pancontinental farm-in on the Walyering gas discovery (EP447) has terminated because its preconditions were not met in time. Strike now holds 100%, plans to run the 3D seismic itself and may farm out. This supersedes the earlier farm-in plan.

farm in farm out agreement

West Erregulla-2 has spudded and drilled the 17-1/2" surface hole to 950m. Casing is next. This starts the well Strike has been building toward, planned to 5,200m.

drilling spud

Strike completed a ~$12m placement of ~184.6m shares at $0.065, well below the $0.115 of late 2018. With the CSBP fee, it says WE-2 and the Jaws pilot are funded; proceeds also repay the remaining CBA facility. Directors take $300k, subject to approval.

capital raising announcement

CSBP, a Western Australian industrial gas user, pays a $5m option fee for up to 80-100 PJ of Strike's West Erregulla gas, conditional on WE-2 success and FID. If WE-2 fails, 50% of the fee is refundable in cash or shares. Fee funds WE-2.

material agreement

The CBA R&D facility was extended to 12 April 2019 while terms are documented for extension to 30 June 2019. Repayments of $500k (30 March), $250k each on 30 April and 30 May, and $4,264,650 on 30 June are proposed. Strike says it is pursuing capital deals to fund Jaws and WE-2.

debt financing

Innovation and Science Australia's internal review confirmed its denial of Strike's FY16 R&D registration, on which Strike received $6,333,638 of tax incentive. Strike has until 22 April 2019 to appeal and will seek ATO advice on tax implications. This hardens the earlier adverse finding.

regulatory community update

Strike added a third West Erregulla-2 target, a Jurassic Cattamarra oil sand at about 2,200m, with best-estimate prospective resource of 7.19 million barrels gross (3.60m Strike share) and 14% chance of success. Gas figures unchanged; 69% chance for the main Kingia-High Cliff target. Drilling in May.

resource reserve update

Rig-less flushing failed to clear sand deposited at Jaws in the January gas event, which has hurt communication between the wells. Strike will bring in a workover rig and coiled tubing in mid-February for about two weeks. The company calls it a setback to the timeline.

drilling progress report

Strike secured the Easternwell 106 rig, with West Erregulla-2 now expected to spud in early May 2019. Reprocessed seismic lifts gross P50 prospective resource to 1.16 TCF (Strike share 50%). Earlier talk of early 2019 drilling has slipped to May.

resource reserve update

Strike received acceptances for 92.01% of UIL ordinary shares, above the 90% needed for compulsory acquisition, which it is now starting for the rest. The preference share offer is now unconditional. This resolves the open 90% threshold.

business combination

Supplementary bidder's statement: UIL acceptances about 64.69%, Strike now controls UIL day to day, Seaton is UIL chairman. Strike intends to seek extra time on UIL's 2019 permit work if funds fall short, with forfeiture risk, and to delist UIL if able. WA fracking moratorium to be lifted.

business combination

The Share Purchase Plan closed raising only about $1m (9,124,426 shares at $0.115), against a target of up to $5m. Together with the $13m placement it funds Jaws, West Erregulla-2 and, if funds allow, UIL's Perth Basin commitments.

capital raising announcement

With acceptances at about 56%, Strike declared its UIL share offer unconditional and will take control of the UIL board, with Andrew Seaton and Stuart Nicholls joining after UIL's 30 November AGM. UIL becomes a controlled subsidiary; offers close 14 December.

business combination

Strike raised $13 million through a placement of 113.04m shares at $0.115, plus a Share Purchase Plan of up to $5 million at the same price. Funds support West Erregulla-2 and Jaws testing. Settlement meets the UIL bid's capital raising condition. Follows the $3m raise in August.

capital raising announcement

Strike will make an off-market takeover bid for UIL Energy at 0.485 Strike shares per UIL share, a 43.4% premium on 30-day VWAPs. UIL's board unanimously recommends it, subject to the capital raising and an independent expert finding it reasonable. Adds Perth Basin acreage beyond West Erregulla.

business combination

Jaws wells have entered gas desorption, with gas building in both well bores and regular flaring over the past fortnight. Water holds at 750-800 barrels a day, and continuous gas release to the separator is set up. No gas flow rates are reported.

production update

Strike raised $3 million via a placement of 28.57m shares at $0.105, a 5% premium to the last close, to four investors. Funds go to Jaws-1 testing, long-lead items for West Erregulla-2 and working capital. This follows the ASX cash query.

capital raising announcement

Jaws-1 wells are online: vertical pump restarted 31 July and horizontal 3 August, and water is flowing to surface as depressurisation begins. Pumps run at low rates for several days, then ramp up. This begins the production testing expected since June.

production update

June quarter: Jaws-1 vertical pump started, horizontal pump pulled for inspection, with 1-2 weeks' delay and 2-4 months of dewatering before material gas. Cash was $2.97m; Strike is in advanced talks to fund 2018 work, and received an adverse ISA finding on its $6.3m R&D claim.

quarterly activities report

Strike says Jaws-1 data, checked by Igesi Consulting, puts reservoir inputs within its commercial range and it is confident gas rates could support a reserve booking. Fractures averaged 162m half-length with ~1 million lb proppant. Core gas content averaged 5.5 m3/t; gas composition data was unreliable.

well test result

Strike completed the purchase of 50% and operatorship of EP469 (West Erregulla) with Warrego. It estimates a best-case prospective resource of 442 BCF net to Strike (P90 285, P10 620), with West Erregulla-2 planned for late Q1 2019. This is unrisked, undiscovered potential, not a discovery.

asset acquisition disposition

Strike completed all seven fracture stages on Jaws-1, including five of the first indirect vertical fractures in Australia, with targeted proppant placed. Microseismic analysis is pending. Clean-out and pumps follow, with production expected from early to mid-July.

drilling result

Remedial cementing did not stabilise the Jaws-1 horizontal hole, so Strike will sidetrack and fracture the Vu Upper coal from the siltstone below it using the Indirect Vertical Fracture Completion technique. Strike says the original objectives are not compromised.

drilling progress report

Strike agreed to acquire 50% and operatorship of EP469 in the Perth Basin from Warrego, 16km from the Waitsia discovery. It pays A$350,000 at settlement, A$250,000 before exploration starts (by 1 Jan 2019), and carries Warrego's share of one well. First move beyond the Cooper Basin.

asset acquisition disposition

Strike spud the vertical well of the Jaws-1 appraisal, the key well toward a reserve booking and Phase 1 decision, after a slow start-up to confirm the rig was fully ready. Drilling is expected to finish in April 2018.

drilling spud

Strike revised its 2014 Orora gas agreement to a 45PJ option at 4.5PJ a year over 10 years from 1 January 2020, conditional on a final investment decision on the Phase 1 50TJ/day project. Volume is unchanged from the prior 45PJ.

material agreement

Strike awarded Halliburton an integrated drilling and stimulation contract for Jaws-1 and secured the Ensign 965 rig, with spud on target for 14 February 2018. The well is to drill to about 2,000m with an 800m horizontal section and seven frac stages, advancing the Q1 2018 plan.

contract award

Strike signed the new Orica gas agreement for up to 64PJ, replacing the 2014 deal for up to 250PJ, resolving the open thread. Orica's $2.5m loan now runs to 31 December 2021 and can be converted into shares at not less than 20 cents.

material agreement

Strike raised about $9.1m through a placement of 130 million shares at $0.07, within existing placement capacity and without shareholder approval. The money funds the Jaws-1 well, with spud targeted for Q1 2018. Bell Potter was lead manager.

capital raising announcement

Strike confirmed it has relocated its registered and operating offices to Adelaide, as planned on 1 June 2017. The South Australian Economic Investment Fund is granting $990,000, partly payable on creating 85 full-time roles by 2021; the funding deed is still to be completed.

admin correction

Strike declared Technical Success on the Klebb Vu Upper coal, refining gas content to 6.0-6.1 m3/t after about three months of pumping, within the top third of its expected range. This resolves the open milestone; Jaws appraisal is planned for Q1 2018. Igesi validated it.

drilling result

Orica signed a binding term sheet to replace its 250PJ gas deal with a 64PJ agreement at a better price, conditional on a final investment decision on a 50TJ/day project. Orica withdrew its $7.5m prepayment claim, though repayment rights remain in defined circumstances. Its $2.5m loan is extended to December 2021 and made convertible at not less than 20 cents.

material agreement

New CEO Stuart Nicholls set a new strategy: the Klebb pilot becomes an exploration project, followed by a two-well 'Project Jaws' targeting 2P reserves within 18 months. Head office moves from Sydney to Adelaide. This replaces the earlier push for commercial pilot gas rates.

other

Chairman Mark Carnegie and Managing Director David Baker resigned. John Poynton becomes Chairman, Stuart Nicholls (ex-Shell) CEO, and Tim Goyder joins as a director. Poynton and Goyder are to get 7m and 5m options at $0.15, subject to shareholder approval.

director officer appointment

After quarter end, Klebb 3 restarted gas flow within the projected 1-4 month window, and Strike targets commercial rates in Q2 2017. Cash was $7.2m after the $4.5m raise, the $3.6m R&D facility ($1.32m drawn) and US sales. Matthew Montano is the new CFO; about $1m of annual savings are cited.

quarterly activities report

The sale of Strike's remaining US assets closed, ending its US acreage holdings. Debt falls about US$2.4m, future restoration obligations are removed, and a preliminary gain of about US$2m is expected.

asset acquisition disposition

Strike agreed to sell its 25% MB Clearfork (Permian) interest for US$175,000 and its 40% Louise well interest, with the BlueRock facility passing to buyers. Closing is expected mid-January 2017. Debt falls about US$2.4m and the US exit is completed.

asset acquisition disposition

Strike signed a fully termed gas supply agreement for 12.5 PJ with Austral Bricks (Brickworks), on terms consistent with the binding term sheet of February 2014. It converts one of the existing offtake commitments into a formal contract alongside Orora and Orica.

material agreement

The $4.5m rights issue closed oversubscribed, with top-up applications scaled back; shares are due to be issued 12 December. Proceeds plus the $3.6m R&D facility fund Klebb testing, reserve certification and the PRL application.

capital raising announcement

Strike gave notice that its discussion period with Orica over the gas supply agreement, due to expire 22 November, was extended to 20 February 2017. Certain rights that could lead to termination of the agreement stay suspended during that time.

material agreement

Strike announced an underwritten 1-for-14 rights issue at $0.07 to raise up to about $4.5m, a 21.3% discount to the 10 November close. Taylor Collison underwrites. Funds go to Klebb flow testing, reserve certification, development planning and the planned PRL application.

capital raising announcement

Executive Director David Baker succeeds David Wrench as Managing Director, effective 9 September 2016. Wrench had led Strike as MD since 2011. Baker negotiated the gas offtake deals that mobilised about $17m and led the Eagle Ford sale.

director officer appointment

Strike raised $6.7m through a placement of 67 million shares at $0.10, a 13% discount to the 1 April close. Directors take 1.7m shares, subject to shareholder approval. Funds go to accelerating production testing and pre-development at Southern Cooper.

capital raising announcement

The ATO confirmed an $8.5m R&D refund for FY15, above the earlier $8.2m estimate. Strike repays the $5.9m Macquarie facility in full, leaving $2.6m for cash. The facility is extended to 30 Nov 2016 with a new limit of up to $4.0m. This resolves the repayment thread.

debt financing

Orica elected to make the first $7.5m prepayment under its 250 PJ gas sales agreement, following the independent resource review. Strike says cash and the R&D refund now comfortably fund Phases 3 and 4. Orica will not subscribe for further shares, ending the $2.5m option.

material agreement

DeGolyer and MacNaughton certified Strike's first contingent gas resource in PEL 96: gross 1C 105, 2C 155, 3C 225 Bcf (2C net 103.6 Bcf at 66.7%). The 2C just exceeds the 150 Bcf economic threshold. This advances the reserves target set for 2015.

resource reserve update

Le Chiffre 1 gas flowed strongly enough to flare, with gas saturation above 90%. Operations at Le Chiffre and Klebb were shut in because flooding closed the access track. Strike expects to resume within about a week.

flow test result

Sustained gas flows to surface were achieved at Klebb 1 and Le Chiffre 1, with gas saturation of 60-80%, well above expectations. Water production is manageable. This resolves the main open question left after the June-July fracs, which showed no sustained gas.

flow test result

The sale of Eagle Ford acreage to Penn Virginia Oil and Gas completed for US$4.5m, subject to post-closing adjustments. This closes the July sale agreement and is part of Strike's progressive monetising of US assets.

asset acquisition disposition

Strike won block CO2013-B (3,443 km2, 100%) in the South Australian Cooper Basin acreage release, next to PEL 96. It carries a committed two-exploration-well program, once native title agreements are done and the permit is formally awarded.

asset acquisition disposition

Strike set a testing plan for PEL 96 (66.7%): pumps on Le Chiffre 1 and Klebb 1 from October, then two offset wells near Klebb 1 drilled from November. The company says up to five wells will be under test by year end. This follows the July promise of a next-phase plan.

drilling scheduled

Flow tests show permeability up to 25 mD at Le Chiffre and 16 mD at Klebb, and lab analysis confirmed hydrocarbons at surface at Le Chiffre. Sustained gas flow is still not achieved; pumps and offset wells are likely needed. Preliminary modelling suggests over 2 Bcf per well.

well test result

Strike agreed to sell 1,617 net Eagle Ford acres in Lavaca County to PVOG for about US$4.5m net, closing expected within eight weeks. This advances the plan to sell US assets; the JV will seek a partner for remaining Fayette acreage.

asset acquisition disposition

Fracs at Le Chiffre 1 and Klebb 1 finished. Coal permeability is up to 25 mD, far above the roughly 0.1 mD expected, with fluid flowing back at up to 5,000 bbl/day. But no sustained gas has reached surface yet, so gas saturation remains unproven.

well test result

Strike signed a binding 45 PJ gas sales agreement with Orora, adding 15 PJ to the 30 PJ option from January and replacing it. Fixed supply over 10 years from 2017. Contracted offtake now totals 307.5 PJ net to Strike.

material agreement

Strike notified partner Australian Gasfields (an Energy World subsidiary) that its 33.33% PEL 96 interest is assigned to Strike after AGL failed to pay a cash call, which would give Strike 100%. Strike has funded $1,483,262 of unpaid cash calls. Operations are said to be unaffected.

joint venture update

Strike signed a full gas supply agreement with Orica, lifting the total from 150 PJ to 250 PJ, with up to $47.5m of elective prepayments plus up to $5m in shares at $0.12 (subject to shareholder approval). The PEL 96 JV committed to pilot testing; fracture stimulation starts in May, with flow results expected in July 2014.

material agreement

Strike raised $12.7m through a placement of 105,977,949 shares at $0.12 to institutional investors, led by Bell Potter. Funds go to accelerate Southern Cooper Basin appraisal, with fracture stimulation of Le Chiffre 1, Klebb 1 and Davenport 1 expected from May.

capital raising announcement

The Eagle Ford JV has hired Scotia Waterous to sell the Cypress Group's Eagle Ford acreage, with bids due early April; Strike (27.5%) will take part. It also farms out Edwards prospects to Fairways, keeping 6.875%, and plans to seek advisers to sell all US assets. This follows the earlier Eagle Ford review.

asset acquisition disposition

Prospective resource in PEL 96 rose to a best estimate of 6.8 Tcf, 4.5 Tcf net to Strike, following the two appraisal wells. The Phase One Area is now 1.2 Tcf net. Vertical production wells are costed at $3.2-3.6m each. Production testing is planned for the June 2014 quarter.

resource reserve update

Strike signed a gas supply option agreement with Orora for 30 PJ, delivered at 3 PJ a year at a fixed price over 10 years from 2017. Orora pays an option fee if the PEL 96 JV proceeds with a pilot test. Complements the Orica deal.

material agreement

Appraisal drilling is finished. Klebb 1 reached 2,193 m with about 147 m of net coal, against 89 m pre-drill estimate, and Le Chiffre 1 found 105 m. Strike says both wells beat expectations. Fracture stimulation and production tests at both wells are planned for Q2 2014.

drilling result

Le Chiffre 1 reached a final depth of 2,089 m, with over 85 m of coal cored and elevated gas readings in all coals. Strike says results exceed pre-drill expectations and confirm a very significant coal system in PEL 96. This resolves the earlier preliminary coring news. Pilot testing planning is underway.

drilling result

Le Chiffre 1 reached 1,588 m, with over 20 m of coal cored from 1,464-1,588 m, including two pressure cores. Preliminary gas readings exceed pre-drill expectations, but Strike says logging and analysis are needed before their significance is known.

drilling progress report

A rig is on site at Le Chiffre 1, the first Southern Cooper appraisal well in PEL 96 (Strike 66.7%, operator), pending final approvals. Planned TD is 2,021 m over about 21 days, with coring. This begins the drilling funded by the August raising.

drilling scheduled

Plug milling at Wolters #1H hit trouble at 13,550', where the casing may have split. A meaningful flow test is now uncertain. Strike hired Miro Advisors to review strategic alternatives for Eagle Ford, aiming to limit further Strike capital. This follows the earlier stuck-tool problems.

drilling result

Mark Carnegie (9.2% holder via M.H. Carnegie & Co) became Chairman from 11 September 2013, replacing Tim Clifton, who stays as a director. David Baker joins as a non-executive director and will also consult to Strike. The change supports the Cooper Basin push, with field work starting October.

director officer appointment

Mark Carnegie joined the board as a non-executive director from 9 August 2013; his firm M.H. Carnegie & Co holds 9.2% of Strike. Ben Thomas and Eytan Uliel resigned as directors, with Thomas remaining US President.

director officer appointment

Strike raised $9.2m by placing 92m shares at $0.10, a 20% discount to the 29 July close; 2m shares to directors need shareholder approval. It funds the three-well PEL 96 appraisal, with drilling from November 2013 and pilot production from April 2014.

capital raising announcement

Shell's Palta 1 did not find commercial hydrocarbons and is being plugged and abandoned. About 20% of the prospect extended into Strike's WA-460-P (33.33%). Strike paid nothing for the well, but the Carnarvon upside it highlighted is gone.

drilling result

Strike signed a binding term sheet to supply Orica up to 150 PJ of gas over 20 years from PEL 96 (Strike 66.67%, operator). Orica may pre-pay up to $52.5m as appraisal milestones are met, funding the Southern Cooper project Strike called a 'break-out transaction'.

material agreement

Wolters #1H spudded 9 June 2013, starting the lower Eagle Ford phase flagged for March; planned 12,850' vertical plus a 6,000' lateral, funded by the BlueRock facility. Strike now has exposure to three wells drilling, including Palta, and says resources now focus on Southern Cooper gas.

drilling spud

Strike signed a non-recourse production payment facility with BlueRock Energy Capital, US$6m initial and up to US$8m, repaid from a revenue interest in its producing US wells. It funds four Eagle Ford and Permian wells in H2 2013, after the earlier 2Q plan for the second Eagle Ford well.

debt financing

Torrens Energy elected not to proceed with buying Strike's Carnarvon subsidiary, so the $3.5m sale announced on 18 April falls away. Strike says it will keep looking to realise value from those Carnarvon assets.

material agreement termination

Strike agreed to sell its subsidiary holding four Carnarvon Basin permits to Torrens Energy for $3.5m cash, to focus on the Cooper Basin and Eagle Ford. It keeps its 33.3% of WA-460-P next to Shell's Palta well. Completion is expected by late June 2013, conditional on Torrens' due diligence and approvals.

asset acquisition disposition

Bigham 1H is producing about 240 bbl/d oil, 960 bbl/d water and 520 Mcf/d gas, with oil cut ~20% and 15% of frac fluid recovered. Strike says full potential can't be judged for some weeks; the gas pipeline is due mid-December.

well test result

Strike was awarded three Eromanga Basin permits in South Australia, near its Cooper permits: PEL 71 (75%, 6,145 km²), PEL 515 (100%, 3,038 km²) and PEL 575 (100%, 3,804 km²). Strike operates all three; they are prospective for conventional oil.

regulatory community update

Per industry reports, Palta-1 spudded 14 October in neighbouring WA-384-P, targeting a 13.5 Tcf gross prospect, up to 20% of which Strike believes lies in its WA-460-P (33.3%, operator). Strike pays nothing; drilling takes 60-90 days. Success would likely lift WA-460-P's value.

drilling spud

Strike raised its net Cooper Basin prospective resource 136% to 14.3 Tcf of gas (best estimate), plus 54 million bbl liquids, from the 5.8-6 Tcf figure, after Davenport 1 and Marsden 1. Flow testing is planned for 2013; Chris Thompson appointed General Manager Cooper Basin.

resource reserve update

Bigham 1H, the first Eagle Ford horizontal production well (Strike 27.5%), is due to spud next week, with fracture stimulation and first production expected around October. Acreage is 9,568 net. Strike cites a 25-40 Mmboe net potential resource, based on an adjacent operator's estimates.

drilling scheduled

Davenport 1 reached 2,102 m and found over 110 m of net coal, including a 45 m seam, which management says is well above pre-drill expectations. Follows Marsden 1; sidetrack coring under way, then the well will be suspended for later testing. Not a flow test.

drilling result

Davenport 1, the second Cooper coal and shale well, spudded 25 April in PEL 94 (Strike 35%). It was at 812 m on 27 April, with 25-30 days expected to drill. Follows the Marsden 1 well; planned depth now 2,192 m.

drilling spud

Preliminary logs show Marsden 1 hit 804 m of Permian sediments, with coal and shale thicker than the resource model assumed, and heavy hydrocarbons up to pentane. Patchawarra coring failed. Well will be cased and suspended for later testing; Davenport 1 spuds within two weeks. Supports the 6 Tcf estimate but is not a flow test.

drilling result

Strike raises $20m via a placement of 117.6m shares at $0.17, a 13% discount to the last close. 45.8m shares issue now; 71.9m need approval at a meeting around 4 May. Funds Cooper follow-up and Eagle Ford drilling. Eagle Ford acreage heads to about 9,400 net acres. Price is well above the January $0.10 raising.

capital raising announcement

Marsden 1 (PEL 95, Strike 50%, Beach operator) is to spud 22 February, targeting 2,640 m and 700-800 m of Permian sediments in the Battunga Trough, 25-30 days to drill. Davenport 1 follows. Starts the Cooper program announced in January.

drilling spud

Details of the two Cooper Basin unconventional wells: Marsden 1 (PEL 95, Strike 50%) to spud in February, then Davenport 1 (PEL 94, 35%). Total cost $5.5m, Strike's share about $2.5m from existing cash. First dedicated unconventional wells on its acreage.

drilling scheduled

Wintermann #1 reached 9,500 feet with no commercial hydrocarbons and is to be plugged and abandoned, a second dry hole in a month. Strike says 2012 resources will focus exclusively on unconventional projects, mainly Eagle Ford and Cooper.

drilling result

Strike raises $5.6m at $0.10 a share: a $2.5m placement (25m shares) plus a 1-for-15 non-renounceable offer for up to $3.1m, not underwritten. Funds go to Eagle Ford and Cooper. It says significant further funding is needed and cost cuts are underway. Price is well below August's $0.15.

capital raising announcement

Kennison 1 reached 18,600 feet with no commercial hydrocarbons and is to be plugged and abandoned. A dry hole for the 10%-held high-risk well; Strike's cost share was already funded. One more Eaglewood Wilcox well is committed.

drilling result

Strike is awarded offshore permit WA-460-P (81 km2, Exmouth Sub-basin) with a one-third interest as operator. It is interpreted to hold up to 20% (2.5 Tcf) of the 13.5 Tcf Palta Prospect, which Shell is expected to drill in 2012.

regulatory community update

Strike buys 25% of a Permian Basin joint venture with Torch Energy Advisors (operator), covering a 170,000-acre area. The first project, MB Clearfork in Martin County, produces about 120 bbl/d; Strike's US$3.5m share is paid from cash, with about US$7m more planned in 2012.

asset acquisition disposition

Strike sets out its Cooper Basin plan with a net P50 prospective resource of 6.1 Tcf gas and 54 million bbl liquids. Beach-operated wells in PEL 95 and PEL 94 are to start in Q1 2012, replacing the earlier vaguer Q4 2011 or early 2012 timing.

resource reserve update

David Wrench becomes Managing Director from 1 October, with Ben Thomas and Eytan Uliel joining the board; Simon Ashton retires as MD on 30 September but stays as non-executive director. This completes the planned CEO handover. Kennison 1 is at 11,500 feet; Eagle Ford acreage is 24,390 acres.

director officer appointment

Kennison 1 (West Plumb Bob, 360-680 Bcfe) spudded 31 August to a planned 18,100 feet, taking 100-120 days; Strike's 10% dry-hole share is already funded. Eagle Ford acreage grew to 22,764 acres (6,260 net), with a drilling program planned over six months.

drilling spud

The $16.8m raising is complete. Holders took up 26.6m shares (about 42%) of the $9.4m rights issue; underwriters Blackswan and Carnegie cover the 36.3m-share shortfall and receive 3m options each at $0.20, subject to shareholder approval at the 17 Nov AGM.

capital raising announcement

Initial fraccing of Sadie 1's deepest Wilcox zone gave non-commercial flow rates, and the operator proposes to suspend the well. Shallower Wilcox and Cook Mountain zones may be tested. This undercuts the earlier 15-20 Bcf prospective potential.

well test result

Strike is raising $16.8m: a $7.39m placement (about half taken by M H Carnegie) plus a fully underwritten entitlement offer, for US Eagle Ford and Wilcox Slope work and working capital. MD Simon Ashton intends to step down; director David Wrench is in talks to become CEO.

capital raising announcement

Strike paid US$2.3m for 10% of the 37,000-acre St Landry Canyon project in Louisiana. First well, targeting 360-680 Bcfe (dry hole cost about US$14m gross), spuds in August. Eagle Ford leasing expanded to 18,000 acres; Sadie 1 pipeline now delayed to late July/August.

asset acquisition disposition