Strike moves to complete takeover of UIL Energy
Strike Energy is proceeding with the compulsory acquisition of the remaining shares in fellow Australian oil and gas explorer UIL Energy after receiving acceptances representing 92.01% of UIL shares on issue for its all-scrip takeover offer.
The company had offered 0.485 Strike shares for every 1 UIL share.
In October, Strike made the takeover offer for UIL to increase its exposure to the Perth Basin in Western Australia to more than 3000 square kilometres.
Notably, UIL’s three northern permits are believed to potentially contain an extension of the Kingia-High Cliff sands that are the main target at the West Erregulla prospect that Strike plans to drill in the first quarter of 2019.
Strike has a 50% operating interest in the EP 469 permit that hosts West Erregulla.
The company’s evaluation of 3D seismic over West Erregulla concluded that it may contain a Waitsia-like deep Kingia-High Cliff conventional gas target that could present prospective volumes sufficient for a major standalone development.
According to Strikee, this was geologically and geophysically supported by a significant quantitative interpretation conducted by an ex-Shell geophysicists at Igesi Consulting.
West Erregulla has multiple, direct hydrocarbon indicators, estimated gross prospective resources of 884 billion cubic feet of gas and like Waitsia, is right next to existing gas transport infrastructure including the two major gas transmission pipelines in WA.
UIL’s southern permits cover a diverse range of conventional and unconventional plays, including the Ocean Hill and Walyering discoveries, which contain both gas and liquids.
With its takeover of UIL now just a matter of reeling in the remaining holdouts, Strike has built strong positions in both the Cooper Basin, South Australia, where it is progressing its historic Jaws-1 super-deep coal seam gas well, and in the Perth Basin, which hosts the West Erregulla and Ocean Hill prospects and a number of other leads and plays.
Strike Energy (STX)
Closing price for the last 90 trading days
Powered by Morningstar ®