- Strata-X Energy (SXA) has entered a trading halt ahead of an upcoming capital raise
- At this stage, it isn’t certain how much the company intends to raise or what the funding will be used for but the company has been busy with some significant news flow
- Last week, Strata-X entered a joint operating agreement with Botsgas for the Serowe CSG Project in Botswana
- This will see Botsgas be the main operator of the project and fund a farm-in appraisal and production testing program
- This will allow Strata-X to focus on its natural gas and hydrogen projects in Queensland
- Additionally, the final approval for a merger with Real Energy (RLE) has been delayed until late January as Strata-X hasn’t yet managed to get shareholder approval to issue its shares to RLE’s shareholders
- If and when the merger is approved, both companies will join together to become Pure Energy Corporation
- SXA last traded at 9 cents on Monday, December 21
Strata-X Energy (SXA) has entered a trading halt ahead of an upcoming capital raise.
The company will remain in the trading halt until 10:00 am AEDT on Christmas Eve.
At this stage, it isn’t certain how much the company intends to raise or what the funding will be used for.
Strata-X Energy is an oil and gas explorer focused on the Venus Project in Queensland and the Serowe CSG Project in Botswana.
Last week, the energy stock executed a joint operating agreement with farm-in partner, Botsgas, for the Serowe CSG Project.
Under the revised agreement, Botsgas will fund 100 per cent of a US$4.6 million (roughly A$6.08 million) farm-in appraisal and production testing program in the project.
Having Botsgas as the project’s operator from January 1, 2021, will allow Strata-X to focus on its natural gas and hydrogen projects in Queensland.
Strata-X also announced last week that the final approval for its merger with Real Energy Corporation (RLE) has been delayed due to a key condition not being met. The outstanding condition is Strata-X must seek shareholder approval for its shares to be issued to Real Energy’s shareholders.
A court hearing has now been postponed until January 20, 2021, and the company is acting quickly to achieve this condition.
The merger was first announced in July this year and will see both companies join together to become Pure Energy Corporation. This will assist the companies in creating a material gas business from the wholly-owned gas resources contained within the Surat and Cooper basins.
SXA last traded at 9 cents on Monday, December 21.