19 Dec 2022business combination● Neutral
Text not readable. Title indicates a takeover offer for Warrego; per Warrego's release the same day, it is an off-market offer of 1 Strike share per Warrego share, competing with Hancock's $0.28 cash bid.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
16 Dec 2022resource reserve update▲ GoodMajor
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%.
14 Dec 2022contract award▲ Good
Talon, Strike's 45% Walyering partner, announced the same five-year, 36.5 PJ take-or-pay gas sales agreement with Santos from Q1 2023, US-dollar and US-CPI linked. Re-release of Strike's news from the partner's side; nothing new for Strike.
14 Dec 2022contract award▲ GoodMajor
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.
7 Dec 2022asset acquisition disposition▲ GoodMajor
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.
24 Nov 2022agm notice● Neutral
AGM address and presentation: chairman highlights South Erregulla-1's 399 PJ of certified gas, the Precinct, Walyering cash flow in early 2023, and calls Beach's Warrego offer inferior. Outcome of the Warrego contest is still months away. Mostly repeats known facts.
21 Nov 2022investor presentation● Neutral
Slide-only release of seismic lines showing West Erregulla, Erregulla Deep and South/West Erregulla structures. No text, figures or new results are readable beyond the labels; apparent support for later exploration announcements (inference).
15 Nov 2022business combination▼ BadMajor
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.
11 Nov 2022material agreement● Neutral
Trek Metals signed a heads of agreement with Strike: if Strike gets its geothermal permit and drills the Future State-1 well, it will give Trek a water sample to test for lithium. Trek bears only analysis costs; no payment to Strike stated. Low-cost option, no commitment to drill.
10 Nov 2022business combination● NeutralMajor
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.
10 Nov 2022business combination▲ GoodMajor
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.
7 Nov 2022other● Neutral
Strike released its first full sustainability report, covering FY22 and restating its Net Zero by 2030 commitment, the Precinct launch and its TCFD climate-risk review. A reporting document; it announces no new project, financial or resource information.
4 Nov 2022other▲ Good
Strike mapped the Tathra Terrace, with four leads totalling about 100 km² of closure, 15km east of SE1, in EP503/EP504. Based on limited 2D seismic; it plans more seismic, then up to two exploration wells. Early-stage exploration upside only.
31 Oct 2022admin correction● Neutral
Share registry Boardroom is changing its Sydney address to Level 8, 210 George Street from 1 November 2022. Administrative notice only.
28 Oct 2022quarterly activities report● Neutral
September quarter report restating Walyering sanction, 982 PJ of certified Perth Basin 2P plus 2C, Haber FEED award, completion of the Precinct land purchase and the $30m placement. Mostly repeats earlier announcements.
27 Oct 2022contract award▲ GoodMajor
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.
19 Oct 2022joint venture update▲ Good
Walyering is progressing: procurement about 70% complete, a pipeline connection agreement signed with APA, and a gas sales term sheet executed with a preferred buyer. Production licence approvals remain the critical path, with first gas still targeted Q1 2023.
18 Oct 2022resource reserve update▲ GoodMajor
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.
10 Oct 2022resource reserve update▲ GoodMajor
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.
5 Oct 2022flow test result● Neutral
The SE1 Wagina test began with a clean-up flow peaking at 10 mmscfd of dry gas (4-5% CO2) after 21m of perforations. Full testing follows the running of downhole gauges; no final result yet.
28 Sept 2022resource reserve update▲ GoodMajor
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.
27 Sept 2022agm notice● Neutral
Strike will hold its 2022 AGM on 24 November 2022, with the notice of meeting due in October. Director nominations close 6 October 2022.
26 Sept 2022drilling progress report● Neutral
The South Erregulla-1 workover is finished after minor delays, and test equipment is moving on site. The Wagina flow test (16m of perforations) is expected this week, with regulator confirmation of the discovery received, a step toward a production licence.
23 Sept 2022other● Neutral
Corporate Governance Statement 2022. Text not readable.
23 Sept 2022annual report● Neutral
Annual report for the year to 30 June 2022. Visible text is notices, contents and the start of the Chairman's letter, which cites certified gas reserves and Haber milestones. No financial figures are shown in the provided text.
23 Sept 2022admin correction● Neutral
Appendix 4G confirming the 2022 corporate governance statement is on Strike's website and board-approved as at 23 September 2022. Administrative filing accompanying the annual report; no new business information.
7 Sept 2022investor presentation● Neutral
RIU Good Oil Conference presentation positioning Strike as a WA low-carbon fertiliser and energy developer. The visible text is disclaimers and references to earlier reserve announcements, with no new results shown.
2 Sept 2022capital raising announcement● NeutralMajor
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.
What it means for a shareholder
128m new shares at A$0.235 to raise about A$30.0m. That's 5.8% dilution: every existing holder's slice gets 5.8% smaller. If you held A$1,000 of shares (4,255 at the issue price), your slice goes from 0.000207% to 0.000195% of the company. To keep it you'd need 264 more shares - about A$62 at the issue price.
Create a free account to see this worked out for your own holding.
1 Sept 2022debt financing▲ Good
Strike secured a $6m, 3-year Rabobank agricultural loan, secured over the property, to help buy the 3,500 ha Precinct land, with settlement due in September. It also began marketing the Precinct's renewable and carbon farm opportunities to developers.
31 Aug 2022drilling scheduled▲ Good
Workover rig is mobilising to South Erregulla-1 to test the Wagina gas discovery from mid-September. SE2 and SE3 drilling is targeted Q2 2023, with long-lead items ordered. Molyneux will assess the 103m carbon storage reservoir, with joint studies with JX Nippon underway.