- Strike Energy (STX) has signed a deal to acquire all existing geothermal rights for the Perth Basin to complement its existing gas business
- The non-binding agreement provides for Strike to acquire all shares in Mid West Geothermal and with it the geothermal rights, pending shareholder and other approvals
- CEO and Managing Director Stuart Nicholls said the geothermal resource would offer substantial synergies to the company’s existing gas interests and ties into its commitment to be a part of WA’s energy transition
- Shares have risen 3.2 per cent to trade at 32.5 cents
Strike Energy (STX) has signed a deal to acquire all existing geothermal rights for the Perth Basin to complement its existing gas business.
The non-binding agreement provides for Strike to acquire all shares in Mid West Geothermal and with it the geothermal rights, pending shareholder and other approvals.
Based on a subsurface evaluation, Strike believes the Permian sandstones in the onshore Perth Basin have the potential to host a substantial geothermal resource within the non-gas bearing structures.
CEO and Managing Director Stuart Nicholls said the acquisition would provide several synergies with the company’s existing gas interests.
“Between Strike’s gas resources and potential future geothermal power, the Perth Basin could be a supplier of low- cost and low to zero carbon energy into WA for more than 50 years.”
“This geothermal resource is 100 per cent complementary to Strike’s existing gas business and has the potential to generate meaningful operational and subsurface synergies with Strike’s substantial gas interests.”
“Strike’s pursuit of this geothermal opportunity amplifies how it is intending to be the driver of WA’s energy transition and its long-term commitment to producing energy and fertiliser products with the lowest feasible carbon footprint.”
Strike will first pay $2 million worth of ordinary shares upon signing the formal documentation. Upon granting of the geothermal exploration permit, pending shareholder approval, Strike will issue another $1 million of shares and, later, several milestone payments.
Shares have risen 3.2 per cent to trade at 32.5 cents at 10:27am AEDT.