Strike Energy (ASX:STX) - Managing Director & CEO, Stuart Nicholls
Managing Director & CEO, Stuart Nicholls
Source: Strike Energy
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Strike Energy (STX) will carry out an $80 million capital raise to help support its West Erregulla Gas Project in WA
  • The energy stock will raise $75 million via an institutional placement and another $5 million through a share placement plan (SPP)
  • More than 266 million shares will be issued under the offers at 30 cents per share — an 18.9 per cent discount to the five-day volume-weighted price
  • STX entered a trading halt ahead of the capital raise announcement, with shares set to resume trading on Monday, April 19
  • Company shares last traded for 37.5 cents per share on Wednesday, April 14

Strike Energy (STX) has announced it’ll carry out an $80 million capital raise to help support its West Erregulla Gas Project in the Perth Basin of WA.

The energy stock is currently running appraisal drilling at the joint venture (JV) project — which partner Warrego Energy (WGO) also has a stake in.

STX said in a market release on Thursday that it’ll raise $75 million via an institutional placement which is set to close on Monday, April 19.

The company is also planning to raise an additional $5 million through a share placement plan (SPP) for STX shareholders, with further details to be announced.

More than 266 million STX shares will be issued under the two offers at 30 cents per share — an 18.9 per cent discount to the five-day volume-weighted price.

Explaining the decision to raise funds, the company said the extra money will ultimately help West Erregulla produce its first gas in 2022.

The capital will also help STX advance its potentially significant South Erregulla gas resources and appraise the Perth Basin’s wet-gas Jurassic play at Walyering.

Strike Energy entered a trading halt ahead of the capital raise announcement, with shares set to resume trading on Monday, April 19.

Company shares last traded for 37.5 cents per share on Wednesday, April 14

STX by the numbers
More From The Market Herald
Calima Energy ASX CE1 - Thorsby-Alberta

" Calima Energy (ASX:CE1) adds Leo#4 to drilling program

Calima Energy (ASX:CE1) adds a high impact unconventional oil well, Leo #4, to its drilling program…

" Strike Energy (ASX:STX) South Erregulla Update

Strike Energy (ASX:STX) has landed and cemented surface casing string at 1940 metres measured depth at…
Buru Energy (ASX:BRU) - Executive Chairman, Eric Streitberg

" Buru Energy (ASX:BRU) faces delays in Canning Basin amid border closures and well hiccups

Buru Energy (ASX:BRU) has had a grim start to the trading week after flagging some delays…
Carnarvon Petroleum (ASX:CVN) - Managing Director & CEO, Adrian Cook

" Carnarvon Energy (ASX:CVN) Buffalo-10 oil well deemed uncommercial

Carnarvon Energy (ASX:CVN) reports that the Buffalo-10 well in the Buffalo oil field in the Timor…