Strike Energy (ASX:STX) has secured up to $153 million from Macquarie Bank (ASX:MBL) to fund production upgrades, pre-development and development costs across its Perth Basin portfolio of assets.
The Perth-based explorer and producer announced today that the financing package comprised three facilities:
• A $60 million facility to refinance the existing drawn debt of $16.3 million and to provide development capital of $43.7 million for Walyering, West Erregulla and general working capital.
• A $53 million facility to support the development of South Erregulla; and
• A $40 million facility to support the development of the West Erregulla Gas Project.
Strike Energy said the facility has a 60-month tenor, capitalising interest, and a 6% coupon plus bank bill swap rate. There will be no principal repayments until 31 December 2026 after which the drawn principal amortises on a quarterly basis for the remaining term of the loan.
In the case of the South Erregulla and West Erregulla facilities, the drawdown is subject to Strike taking a final investment decision on those projects and Macquarie’s internal approvals. The
Strike’s Chief Executive Officer & Managing Director Stuart Nicholls said:
“This financing package provides the funding clarity for Strike’s Gas Acceleration Strategy made up of a series of highly attractive Perth Basin energy assets. The lowering of the company’s cost of capital is commensurate with the advanced stage and derisking of its production and development portfolio.”
STX was up 3.5% trading at 22.3cents.