Strike secures $153m for expansion

Strike Energy recently announced a major financial agreement with Macquarie Bank.

The Perth-based energy company has secured terms for a substantial $153 million financing package, set to fuel its ambitious development plans in the Perth Basin.

The five-year funding arrangement comprises three distinct facilities, each targeting different aspects of Strike’s operations and future projects.

The first is a $60 million facility aimed at refinancing $16.3 million of existing drawn debt and providing $43.7 million for development capital.

This portion will support upgrades at the Walyering gas field, pre-development work, and offer general working capital across Strike Energy‘s Perth Basin portfolio.

Looking ahead, the package includes two additional facilities: $53 million earmarked for the development of South Erregulla, and $40 million allocated to support the West Erregulla Gas Project. These facilities underscore Macquarie’s confidence in Strike’s expansion strategy and the potential of these key assets.

With a 60-month tenor and interest capitalisation, the package comes with a 6 per cent coupon plus bank bill swap rate.

Notably, the repayment structure is designed to give Strike ample time to develop its assets, with no principal repayments due until December 31, 2026. After this date, the drawn principal will amortise on a quarterly basis for the remaining term.

“This financing package provides the funding clarity for Strike’s Gas Acceleration Strategy made up of a series of highly attractive Perth Basin energy assets,” Strike Energy chief executive officer & managing director Stuart Nicholls said.

“The lowering of the Company’s cost of capital is commensurate with the advanced stage and derisking of its production and development portfolio.”

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