Past year: ▼ 5%(9.70c – 12.5c AUD)
Each one in plain English, with the numbers worked through for a shareholder.
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.
29 Apr 2019quarterly activities report● Neutral
March quarter: WE-2 site works complete and permission to drill received; spud now late May as the rig finishes another job in Queensland. Jaws workover done and gas restored, with bottom hole pressure about 560 psi. Strike is in advanced talks on funding deals and seeking a PEL515 farm-out.
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.
3 Apr 2019investor presentation● Neutral
April investor presentation restates Strike's strategy and milestones: WE-2 spud, Walyering 3D, and Jaws production test resumption. Shows 1,364,087,301 shares and market capitalisation of $98m. Cash and facilities about $11.5m at end Q4/2018 (text truncated). Largely repeats known facts.
28 Mar 2019debt financing● NeutralMajor
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.
27 Mar 2019regulatory community update▼ BadMajor
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.
22 Mar 2019drilling progress report▲ Good
Jaws wells are being drawn down with little solids returned. Water is 300-400 barrels a day and reservoir pressure about 800 psi. Sporadic gas surges began at 850 psi, which Strike calls encouraging. No gas rates given; commercial success not yet declared.
8 Mar 2019other● Neutral
S&P Dow Jones Indices announced its March 2019 quarterly rebalance, adding Strike Energy to the All Ordinaries from the open on 18 March 2019. It was an index notice only, with no operational or financial change for the company.
7 Mar 2019joint venture update● Neutral
Partner Petrel (Warrego's reverse-takeover acquirer) repeated Strike's news that site works have started at WE-2. It also says Petrel's shareholder meeting on the Warrego deal is now 15 March 2019, later than the 18 February previously noted. Duplicate of Strike's release.
7 Mar 2019drilling progress report▲ Good
Site preparation and civil works have started at West Erregulla for the Easternwell 106 rig ahead of the WE-2 well. Strike is operator with 50%; Warrego holds the other 50%. This is the first on-ground step toward the planned well.
5 Mar 2019resource reserve update▲ GoodMajor
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.
28 Feb 2019half year report● Neutral
Half-year to 31 Dec 2018: loss of $0.8m, with no R&D tax refund booked while the Jaws claim is under ISA assessment (prior year $3.7m). Strike raised $17m before costs in the second half. Reports the Jaws workover completed and West Erregulla-2 drilling in Q2 2019.
27 Feb 2019drilling progress report▲ Good
Jaws workover finished and both pumps are back online, with communication between the two wells re-established. Strike will resume depressurising the Vu Upper coal toward the critical desorption pressure. This resolves the sand blockage from the January gas event.
22 Feb 2019admin correction● Neutral
Strike clarified its 14 January West Erregulla resource figures, adding the cautionary wording. It states chance of success of 69% for the Kingia-High Cliff and 12% for basal Wagina, with target depths of 4,700m and 4,100m. Drilling is now Q2 2019. Figures unchanged.
19 Feb 2019drilling progress report● Neutral
Jaws workover began early. Coiled tubing cleared an obstruction and reached the horizontal well's toe, but nitrogen returns to surface were not established. Pumps are being rerun and restart is expected within a week.
1 Feb 2019listing compliance notice▼ Bad
Strike answered an ASX query on why the 1 January Jaws gas event was not announced sooner, saying it did not consider it material and that it complies with Listing Rule 3.1. ASX noted the share price fell from $0.075 to a low of $0.066 after the quarterly.
25 Jan 2019drilling progress report▼ BadMajor
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.
23 Jan 2019quarterly activities report● Neutral
Quarterly report: a major gas release on New Year's Day sent sand into the Jaws wellbore and disrupted operations, with intervention under way. Also reports the $14m raising, completed UIL takeover, Bizzell on the board, and West Erregulla-2 to spud in May.
14 Jan 2019joint venture update● Neutral
Petrel's release repeats Strike's 14 January update: rig secured, West Erregulla-2 spud early May 2019, and gross P50 prospective resource of 1,162 BCF (Warrego 581 BCF). Duplicate of ref 7 from the partner's side; Strike's RTO remains subject to Petrel shareholder approval.
14 Jan 2019resource reserve update▲ GoodMajor
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.
31 Dec 2018director officer appointment● Neutral
Tim Goyder resigned from the Strike board and Stephen Bizzell, previously UIL's remaining director, joined as non-executive director. Bizzell is to receive 5 million options at $0.15 for three years, subject to shareholder approval.
21 Dec 2018joint venture update● Neutral
Petrel (ASX:PRL) and Warrego signed a binding share purchase agreement for the reverse takeover; completion planned 19 February 2019. Strike is not a party. It restates Strike funding up to A$11m of West Erregulla-2, with drilling in first half 2019.
20 Dec 2018drilling progress report▲ Good
Strike says Jaws gas production continues to build, with daily ranges narrowing as flows rise, and water production stable. Described as indicating matrix desorption is occurring. No rates given and commercial success not yet declared.
