Oil and gas explorer Strike Energy announced today it has raised $30 million through a share placement and is seeking an additional $5 million through a share purchase plan, primarily to fund the company’s exploration and appraisal programs in the Perth Basin.
Strike said funds raised would also go towards the continuation of piloting operations in the company’s Southern Cooper Basin gas project in Queensland.
Under the placement, the company issued approximately 130.5 million shares at 23 cents per share, with Petra Capital acting as lead manager.
Strike said the placement price represented a 4.2 per cent discount to the closing price on October 29.
Further, Australian and New Zealand shareholders will be able to purchase up to $30,000 worth of shares at 23 cents per share, with proceeds capped at $5 million.
Strike Energy managing director Stuart Nicholls said the funds raised had provided the company with the capital required to commence several contracts and activities across its Perth Basin project.
“Securing this high-quality capital is the final pillar that supports Strike’s development and growth strategy in Western Australia,” Mr Nicholls said.
“These funds will enable Strike to deliver critical reservoir, appraisal and engineering outcomes required for a final investment decision on the proposed first phase of the West Erregulla development.”
Last week, the company announced it had begun flow testing at the West Erregulla discovery at the Perth Basin.
Shares in Strike Energy are trading at its lowest for the month to 23 cents per share, down 4.17 per cent, as at 1:50pm AEDT.
