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Strike starts the year with a bang

Strike Energy managing director and chief executive officer Stuart Nicholls reflected on a very productive period for the company. Image: Gstudio/stock.adobe.com

The energy company looks back to an impressive quarter, thanks to a new gas sales agreement (GSA) and a high production level at Walyering.

Strike Energy managing director and chief executive officer Stuart Nicholls reflected on a very productive period for the company.

“During Q2/24 Strike completed its first quarter of production operations, producing a gross total of 1.9 PJe, at $0.51 GJ, which generated significant positive cashflows,” he said.

“The quarter was also marked by completing the acquisition of Talon Energy and delivering appraisal success at South Erregulla whilst progressing both the South and West Erregulla developments.”

During the quarter Strike completed its acquisition of Talon Energy via Scheme of Arrangement consolidating 100 per cent ownership of the Walyering gas field.

Walyering produced a total of 1.9 petajoules (PJ) of gas and condensate generating gross revenue for the L23 Joint Venture of $14.4 million.

Strike and Alinta Energy WA Pty Ltd entered into a firm 100 per cent take or pay gas sales agreement for a total of 3.4 PJ over two years from February 2024.

On the South Erregulla front, Strike secured foundation firm gas sales agreements for a total of 42 PJ which will underpin the bankability and development of the proposed Phase 1 development, which received its Part IV primary environmental approval.

Successful appraisal drilling at SE3 confirmed the continuity of the South Erregulla gas field to the Northwest with 13 metres net gas pay.

Additionally, appraisal of the potential CO2 storage capacity, was observed 75m of net reservoir.

Strike paid down $6.7 million of its drawn debt with Macquarie Bank and finished the quarter with a liquidity position of ~$114 million, plus an uncommitted $80 million contingent debt facility for Strike’s South Erregulla domestic gas development.

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