Exploration & Production | Finance & Investing | Capital Markets

Strike Wraps Up $12.7MM Capital Raise to Fund Cooper Basin Gas Project

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Strike Energy Limited has reported the successful completion of a $12.7 million capital raising by way of a private placement to sophisticated and professional investors.

The Company will issue 105,977,949 fully paid ordinary shares at $0.12 per share to sophisticated and professional investors within the Company's 15% placement capacity under ASX Listing Rule 7.1.

Funds raised by the Placement will be used to accelerate the appraisal and development of Strike's Southern Cooper Basin Gas Project. Preliminary preparation work ahead of the fracture stimulation and production testing program to be carried out at Le Chiffre 1, Klebb 1 and Davenport 1 is underway with fracture stimulation operations expected to commence in May.

Bell Potter Securities Limited acted as Lead Manager for the Placement with Blackswan Equities Limited acting as Co‐Manager.

The Placement is expected to settle on 19 March 2014 with the Placement shares expected to be issued and to commence trading on the ASX on 20 March 2014.

Managing Director, David Wrench, said: "This capital raising provides the foundation for Strike to accelerate the commercialisation of the Southern Cooper Basin Gas Project toward a development decision. Our next steps will be to undertake the first stage of a production testing and optimisation program with work due to commence imminently.

"The strong support for this raising from new and existing institutional investors is an important endorsement of the Company's strategy and recognises the unique opportunity that Strike has to develop independent gas supply for the eastern states gas market."