Oz Strike Completes Share Placement Exercise
Australia’s Strike Energy has completed a share placement raising approximately A$12mn (US$8.3mn), it said May 30.
This placement follows the May 29 announcement of the grant of an option to CSBP, a Western Australian industrial gas user, for up to 100 petajoules (2.6bn m3) of gas from West Erregulla contingent on the success of West Erregulla. CSBP is to pay Strike A$5mn for the grant of the contingent option.
“With the placement proceeds and the option fee, Strike is now fully funded for the drilling and completion of the West Erregulla-2 well, on track to spud on 31 May 2019, and the continuation of the Jaws Project pilot test,” managing director, Stuart Nicholls said.
The capital raised through the share placement will be used to fund the drilling and completion of the West Erregulla 2 well; ongoing operation of the Jaws Project pilot test; repayment of the remaining CBA facility; seismic preparation activities across the company’s Southern Cooper Basin and other Perth Basin projects, with the objective of re-loading Strike’s prospect funnel; and general working capital.