Past year: ▼ 5%(9.70c – 12.5c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
19 Aug 2019drilling progress report● Neutral
WE-2 is drilled to 4,650m in the final hole section. After a short rig maintenance, Strike will run logging-while-drilling tools to capture data as it approaches the first primary target, the Kingia sandstone.
16 Aug 2019investor presentation● Neutral
General meeting presentation repeating known West Erregulla facts: Wagina discovery, 916 BCF gross P50 prospective resource at the primary target, rig release expected early September, with flow testing to follow shortly after.
12 Aug 2019resource reserve update▲ Good
Strike upgrades the Wagina discovery to at least 10.2m net reservoir (from 2.5m) and a 79m gross gas column, comparing it with the nearby Beharra Springs fields. Pressure exceeds 6,800 psia. No contingent resource is booked until a flow test.
7 Aug 2019drilling progress report● Neutral
WE-2's 8-5/8" liner is cemented at 4,226m, finishing the second intermediate section. Strike will log the cement, then drill the 6-3/4" hole toward 5,200m and the primary Kingia and High Cliff targets.
5 Aug 2019drilling result▲ Good
Joint venture partner Warrego repeats the Wagina gas discovery (74m gross, ~14% porosity) and says the sands are encouraging for the deeper Kingia-High Cliff target, expected by end August. The Wagina zone will be cased off for possible later flow testing.
1 Aug 2019drilling result▲ GoodMajor
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.
1 Aug 2019admin correction● Neutral
Correction to the 1 August Wagina announcement: the highlights now state WE-2 is still to drill through Basal Wagina and has yet to encounter water-wet sands. No new results.
30 July 2019other● Neutral
ASX paused trading in Strike's shares pending a further announcement. No reason is given in the notice.
29 July 2019drilling progress report▲ Good
WE-2 reached 4,229m with continuous strong gas shows. The hole is conditioned and Schlumberger wireline logging is starting. The primary Kingia-High Cliff target is yet to be drilled.
24 July 2019drilling result▲ GoodMajor
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.
16 July 2019drilling progress report▼ Bad
WE-2 is at 3,617m. Drilling through the Kockatea shale has been much slower than expected, needing many bit changes. Strike expects better progress ahead through the sandstones to about 4,230m.
5 July 2019drilling progress report▲ Good
WE-2 is at 3,371m with pronounced hydrocarbon shows in the Lesueur and Woodada formations. Strike says they look markedly better than in the nearby West Erregulla-1 well. Wireline logging will follow at section TD.
28 June 2019drilling progress report● Neutral
WE-2 finished the first intermediate section at 2,499m and cemented the 11-3/8" casing. Next is the second intermediate section to about 4,230m, which will intercept the Basal Wagina gas target.
21 June 2019drilling progress report● Neutral
Jaws pilot: flowing bottom hole pressure has been drawn down to 250 psi, with sustained gas production slowly building. Water is 450 bbls/d. No gas rates given; commercial success not yet declared.
20 June 2019drilling progress report● Neutral
WE-2 is at 2,280m. The Cattamarra oil target showed hydrocarbon shows but too weak to justify logging or testing; Strike calls them supportive of its model. The well is said to be on schedule and budget.
14 June 2019drilling progress report● Neutral
WE-2 surface casing was cemented at 950m. Several days of unplanned rig maintenance and severe weather delayed restart; drilling is now at 1,237m in the first intermediate section, heading to about 2,550m.
14 June 2019farm in farm out agreement● NeutralMajor
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.
6 June 2019drilling spud▲ GoodMajor
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.
4 June 2019regulatory community update● Neutral
Strike reached an in-principle deal with the ATO: any FY16 R&D tax liability is deferred until the AAT appeal is finally decided (est. 18+ months), then repaid over 600 days, secured by a general security over company assets. Subject to final documents.
31 May 2019drilling progress report● Neutral
The Easternwell 106 rig completed its 4,500km, 95-load move to West Erregulla and was set up, with spud expected on Saturday 1 June. The well is planned to 5,200m across three targets.
30 May 2019capital raising announcement● NeutralMajor
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.
What it means for a shareholder
185m new shares at A$0.065 to raise about A$12.0m. That's 12% dilution: every existing holder's slice gets 12% smaller. If you held A$1,000 of shares (15,385 at the issue price), your slice goes from 0.00113% to 0.000993% of the company. To keep it you'd need 2,082 more shares - about A$135 at the issue price.
Create a free account to see this worked out for your own holding.
29 May 2019material agreement▲ GoodMajor
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.
27 May 2019investor presentation● Neutral
Presentation to farm-out investors: Strike offers a 40% non-operated stake in the Ocean Hill gas discovery (EP495) in exchange for a full carry of 250km² of 3D seismic (~$3.2m). Cites 360 BCF 2C contingent resource from a 2015 Eneabba announcement.
21 May 2019regulatory community update▼ Bad
Innovation and Science Australia's internal review confirmed its denial of Strike's FY18 R&D pre-registration, withholding the tax credits. Strike received no FY18 refund and owes nothing back. It has until 17 June 2019 to appeal. Follows the FY16 denial.
15 May 2019drilling progress report▲ Good
Jaws has consistent gas production again, and the flare was relit on 13 May with reservoir pressure at 425 psi. Water is 450-500+ barrels a day. This follows the January sand setback, but no gas rates are given and commercial success is not yet declared.
14 May 2019investor presentation● Neutral
Strike's Petroleum Club WA talk argues West Erregulla's Kingia-High Cliff target is a direct analogue to Waitsia, repeating the 69% chance of success. It restates known geological arguments and contains no new result.
8 May 2019drilling progress report▲ Good
The Easternwell 106 rig has begun leaving Queensland for West Erregulla, about 90 loads over 4,500km. Civil works are complete and spud is expected towards the end of May. The well is planned to 5,200m total depth across three targets.
6 May 2019other● Neutral
Strike says reprocessed Waitsia seismic shows amplitude patterns similar to West Erregulla, which it takes as added support for a gas discovery at WE-2. This is supporting argument, not a drilling result; spud is due late May.
23 Apr 2019regulatory community update● Neutral
Strike lodged an appeal with the Administrative Appeals Tribunal against the adverse finding on its FY16 R&D registration ($6.3m incentive received), plus a request to stay the decision. It says it will fight through the full appeals process. This continues the dispute.
12 Apr 2019debt financing● Neutral
The CBA R&D facility extension to 30 June 2019 is now confirmed, on the repayment terms announced on 28 March. This completes the documentation Strike flagged at that time.
