Strike Energy Raises A$36M via Strategic Placement and Share Purchase Plan
Strike Energy has successfully completed a A$36 million capital raise through a strategic placement and share purchase plan, setting the stage for critical project developments and exploration activities.
- Raised approximately A$36 million before costs
- Issued over 300 million new shares at A$0.12 each
- Funds allocated to South Erregulla 85MW Project completion
- Capital to support upstream development at West Erregulla
- Exploration wells planned at Walyering West and Ocean Hill
Strategic Capital Raise Completed
Strike Energy Limited (ASX, STX) has announced the completion of the second tranche of its strategic placement to Carnarvon Energy Limited (ASX, CVN), alongside a share purchase plan (SPP), collectively raising approximately A$36 million before costs. This capital injection marks a significant milestone in Strike’s funding strategy, reinforcing its financial position to advance key projects and exploration efforts.
The company issued a total of 300,380,990 new fully paid ordinary shares at an issue price of A$0.12 per share. This issuance follows shareholder approval at the Extraordinary General Meeting held earlier in September 2025, ensuring alignment with investor interests and corporate governance standards.
Focused Deployment of Funds
Proceeds from this capital raise will be principally directed towards the completion of the South Erregulla 85MW Project, a critical development expected to enhance Strike’s production capacity. Additionally, funds will support upstream field development at West Erregulla, which remains a core asset in the company’s portfolio.
Exploration activities will also benefit, with planned drilling at the Walyering West and Ocean Hill wells. These initiatives underscore Strike’s commitment to expanding its resource base and unlocking future growth opportunities in the competitive energy sector.
Broader Corporate Implications
Beyond project-specific investments, a portion of the capital will be allocated to working capital and general corporate purposes, providing the company with operational flexibility amid evolving market conditions. The strategic placement to Carnarvon Energy not only strengthens financial resources but also deepens the partnership between the two energy players, potentially opening avenues for collaboration.
Strike’s management expressed gratitude to shareholders who participated in the SPP, highlighting the ongoing support from its investor base. As the company moves forward, the effective deployment of these funds will be critical to delivering on its development and exploration targets.
Bottom Line?
Strike Energy’s successful capital raise sets a robust foundation for upcoming project milestones and exploration results that could reshape its growth trajectory.
Questions in the middle?
- What are the expected timelines and milestones for the South Erregulla 85MW Project completion?
- How will the exploration outcomes at Walyering West and Ocean Hill influence Strike’s resource estimates?
- What strategic benefits might arise from the strengthened relationship with Carnarvon Energy?
