- Strike Energy (STX) capped off a busy start to the 2022 financial year by announcing it had been added to the ASX 300 following a rebalance
- The energy stock spent much of Q1 FY22 focused on West Erregulla where it concluded its drilling campaign and issued a maiden gas reserve
- The company also completed pre-feed on its fertiliser development Project Haber and completed a seismic program at South Erregulla
- Strike ended September with more than $52 million in the bank, enough funds to keep the business running for an additional 4.7 quarters
- Shares in Strike Energy are trading steady at 17.5 cents apiece at 12:43 pm AEDT
Strike Energy (STX) capped off a busy start to the 2022 financial year by announcing it had been added to the ASX 300.
The energy stock released a Q1 FY22 update on Friday, confirming it entered the index after a rebalance during September.
STX spent much of the three-month period focused on West Erregulla, where a maiden reserve of up to 372 petajoules gross gas reserves at the Kingia Sandstone alone.
Additional upside has been identified at the West Erregulla gas field with a further 198 petajoules of gross 2U resources.
The reserve certification helps Strike progress the West Erregulla Project into its first phase of development.
The reserve comes after the energy stock concluded drilling at the gas field and also increased its stake in the asset to 54 per cent.
In terms of other activities completed during Q1, STX said it completed pre-feed on its fertiliser development Project Haber.
It also completed a major seismic program at South Erregulla and is now preparing to spud the Walyering-5 appraisal well.
Strike ended September with more than $52 million in the bank, enough funds to keep the business running for an additional 4.7 quarters.
The energy stock spent more than $1.7 million on operating activities and more than $23.8 million on investment work.
Company Managing Director and CEO Stuart Nicholls said FY22 was shaping up to be a big year.
“Strike has had another busy quarter as it concluded its CY20/21 West Erregulla drilling
and testing campaign and completed the pre-FEED on Project Haber,” Mr Nicholls said.
“This report from certifier NSAI reflects a point in time of the resource maturation and is based on only three well penetrations for the field.
“Importantly, the reserves booking is sufficient to progress towards the FID of the West Erregulla Phase 1 development, which is a positive outcome and provides a pathway to Strike’s first cashflows.
“In the coming months the Company will drill the Walyering and South Erregulla
exploration wells, where positive outcomes have the potential to create significant value.”
Shares in Strike Energy were trading steady at 17.5 cents per share at 12:43 pm AEDT.