Strike Energy has completed a $20 million share placement to fund further drilling programs at its Cooper Basin fields and demonstrate the commercial potential of its Eagle Ford shale gas assets.
Managing director David Wrench said the company was pleased with the take up of the placement, which was priced at 17 cents per share.
Mr Wrench said the company had the financial resources to deliver its medium term strategy of confirming more gas and liquids resources in the Cooper Basin, and demonstrate the commercial potential of its Eagle Ford position.
Bell Potter Securities acted as lead manager to the placement.
“While we are extremely enthusiastic about the potential of our assets we realise that we have a significant amount of hard work ahead of us to fully demonstrate their inherent value,” Mr Wrench said.
“We are delighted to have received strong support from leading Australian and international investors which have demonstrated confidence in Strike’s assets and strategy and in the potential of our program to achieve a re-rating of these assets.”
Strike stocks finished up 7.7 per cent, trading at 21 cents.
