Join our daily newsletter At The Bell to receive exclusive market insights
Embattled gasfield developer Strike Energy (ASX:STX) has won a key approval from the EPA to continue developing the West Erregulla asset overlying the onshore Perth Basin.
At the same time, Australia Gas Infrastructure Group (AGIG) have won approval to build out a pipeline on-site to be used by Strike in the near future, all things in order.
The EPA approval was handed down to Strike by way of a Ministerial Statement after a three year period satisfying environmental study requirements.
However, Strike isn’t out of the woods yet when it comes to community consultation – under the EPBC Act, there must be another 10 day review period. Strike anticipates approval to come this quarter regardless.
The EPA approval relates to the EP469 licence JV which sees Strike operate the asset but otherwise share it 50/50 with Warrego Energy.
The news could be well received by long term shareholders. Strike has been suffering YTD with 1Y returns down -47%.
The company hit a duster earlier this year downhole what was expected to be a more promising well. Strike also locked down terms for a $153M development funding package back in June.
That duster really did knock Strike off a good run (though it still has a market cap over $600M.) At one point following the release of that news in February, nearly a third of Strike Energy’s entire value was wiped off in one trading day.
STX last traded at 22cps.
-1200x645-380x200.jpg)