Strike Raises Funds for Cooper Basin Gas Project

Strike Energy has raised $9.2 million by the way of private placement for completion of the next phase of drilling and appraisal work in company’s Southern Cooper Basin Gas Project.

“Completion of this work leads directly to the first of Orica’s gas prepayment milestones. The company’s development strategy for this asset is proceeding to plan, building on the recently announced gas sales and prepayment agreement with a subsidiary of Orica,” Managing Director, David Wrench, said.  

In July, Orica Australia, a subsidiary of Orica Limited and Strike Energy inked a deal where Strike will supply up to 150 PJ of gas produced from Strike’s PEL 96 located in Cooper Basin, Australia.

To secure its gas offtake Orica can elect to make up to $52.5 million of gas pre-payments as Strike achieves appraisal and development milestones.

Strike’s Southern Cooper Basin Project is initially targeting the coal seam gas potential within permits PEL 94, PEL 95 and PEL 96. Strike estimates that approximately 75% of the 8.2 to 21.5 Tcf prospective resource in this area is associated with the coal.