Strike Raises $2.22mn for Oz Jaws-1, West Erregulla-2 Projects
Strike Energy has raised A$3 million ($2.22 million) through a share placement which it will use to support its Australian Jaws-1 pilot testing program in the Cooper Basin and long lead items for the West Erregulla-2 well in the Perth Basin, the company said August 6.
“Strike is now in a sound financial position to progress testing of the potentially transformational Jaws-1 wells, which will determine the commercial viability of the Southern Cooper Basin Gas Project,” Strike’s managing director Stuart Nicholls said.
“Strike is also preparing to drill the West Erregulla-2 well in the Perth Basin in early 2019, targeting a material conventional gas reservoir similar in nature to the neighbouring Waitsia gas field,” he added.
The company will issue 28,271,428 fully paid ordinary shares at A$0.105 per share to four institutional and sophisticated investors. The placement price represents a 5% premium to the last closing price of A$0.10 per share at August 3 and is equal to the five-day volume weighted average price, the company said.
Strike announced last week that the gas wells at the Jaws-1 project have been commissioned and are fully online.
The Jaws-1 Project wells are located at the Southern Cooper Basin Gas Project in PEL96 with Strike holding a 66.67% stake and Energy World Corporation holding the balance.
Strike has previously said it aims to achieve commercial gas flow rates of 50 TJ/d (1.34mn m3/d) from the project and early last month the company said that based on data it had collected it was confident of producing commercial flow rates.