- Strike Energy (STX) secures an additional up to $20 million debt facility with Macquarie Bank to cover costs across its Perth Basin gas projects in WA
- The facility will be split into two tranches with the first $10 million committed for current operational activities
- The other half is uncommitted and intended to bring the Walyering gas project into production, subject to Macquarie’s approval
- Strike spoke of the potential of the of the total drawn debt to be rolled into a proposed project financing facility supported by Walyering production
- STX shares are down 1.96 per cent to trade at 25 cents at 10:41 am AEST
Strike Energy (STX) has secured an additional up to $20 million debt facility with Macquarie Bank to cover costs across its Perth Basin gas projects.
The facility is split into two tranches with the first $10 million committed for current operational activities with similar conditions to the existing drawn debt.
The other $10 million is uncommitted and is intended to bring the Walyering gas project into production, however this is subject to the Macquarie Bank’s approval.
“The facility is intended to provide Strike with the capital required to continue to
progress its journey to becoming a significant Western Australia’s gas producer,” the company told the market.
Additionally, the repayment of an existing $13 million debt facility with Macquarie has been extended a further year to November 2023.
Strike is expecting to to achieve a final investment decision (FID) for the Walyering project in the second half of the year. The company said the total drawn debt may be rolled into a proposed project financing facility supported by Walyering production.
If this does happen, Strike said it could be as early as the third quarter of CY22.
As part of the new facility, Strike will issue Macquarie with 20.7 million options to subscribe for Strike ordinary shares at 34 cents each with an expiry of December 22, 2024.
STX shares were down 1.96 per cent to trade at 25 cents at 10:41 am AEST.