Strategic Placement to Fund Strike's Next Phase of Growth
Released
Released
Announcement PDF
Strategic Placement to fund
Strike’s next phase of growth
22 July 2025
1
Cautionary note and disclaimer
You are advised to read the following carefully before making any use of the information contained in this Presentation.
This Presentation is dated 22 July 2025 and has been prepared by Strike Energy Limited (ASX:STX) (Strike) in relation to (i) the two-tranche placement of its proposed issue of fully paid ordinary shares in Strike (Shares) to Carnarvon Energy Limited (Carnarvon) to raise up to A$88
million (before costs) (Strategic Placement) and (ii) an offer of Shares to eligible shareholders under a non-underwritten share purchase plan to raise up to A$10 million (before costs), with Board discretion to accept oversubscriptions of up $5 million (SPP). Tranche 2 of the
Strategic Placement and the SPP are subject to shareholder approvals.
This Presentation has been authorised for release to ASX by the board of directors of Strike (Board).
Summary information
This Presentation contains summary information and statements about Strike, its subsidiaries and their respective activities, which is current as at the date of this Presentation (unless otherwise indicated).
The information in this Presentation is general in nature and does not purport to be exhaustive. For example, this Presentation does not purport to contain all of the information that investors may require in evaluating a possible investment in Strike.
This Presentation should be read in conjunction with Strike’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available on the ASX website (at www.asx.com.au) and the Strike website (at
www.strikeenergy.com.au).
No person other than Strike has authorised or caused the issue, release, submission, distribution or provision of this Presentation, or takes any responsibility for, or makes or purports to make, any statements, representations or undertakings in this Presentation. Strike, to the
maximum extent permitted by law, expressly excludes and disclaims all liability (including, without limitation, any liability arising out of fault or negligence on the part of any person) for any direct, indirect, consequential or contingent loss or damage, or for any costs or expenses,
arising from the use of this Presentation or its contents or otherwise arising in connection with it. Strike does not make any representations or warranties (express or implied) to you about the currency, accuracy, reliability or completeness of the information, opinions and
conclusions in this presentation (including, without limitation, any financial information, any estimates or projections and any other financial information).
The SPP offer will be made on the basis of the information contained in the share purchase plan offer booklet (SPP Offer Booklet) to be prepared for eligible shareholders and will be available following its release on ASX. Any eligible shareholder who wishes to participate in the SPP
should consider the SPP Offer Booklet before deciding whether to apply for Shares under the SPP. An eligible shareholder who wishes to apply for Shares under the SPP will need to apply in accordance with the instructions contained in the SPP Offer Booklet.
Not an offer, and not investment or financial product advice
This Presentation is not a prospectus, product disclosure statement or other disclosure document under the Corporations Act, or other offering document under Australian law or any other law. This Presentation has not been lodged with the Australian Securities and Investments
Commission. This Presentation, and the information contained in it, is provided for information purposes only and is not an offer or solicitation or an invitation or recommendation to subscribe for, acquire or buy securities of Strike, or any other financial products or securities, in
any place or jurisdiction.
This Presentation may not be released to US wire services or distributed in the United States. This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or any other jurisdiction in which such an offer would be
unlawful. The securities referred to in this document have not been, and will not be, registered under the US Securities Act of 1933 (US Securities Act) and may not be offered or sold in the United States except in transactions exempt from, or not subject to, the registration
requirements of the US Securities Act and applicable US state securities laws.
This Presentation, and the information provided in it, does not constitute, and is not intended to constitute, financial product or investment advice (nor tax, accounting or legal advice) or a recommendation to acquire any securities of Strike. It has been prepared without taking into
account the objectives, financial or tax situation or particular needs of any individual. Any investment decision should be made based solely upon appropriate due diligence and other inquiries. Before making any investment decision, investors should consider the appropriateness
of the information having regard to their own objectives, financial and tax situation and needs and seek professional advice from their legal, financial, taxation or other independent adviser (having regard to the requirements of all relevant jurisdictions). Strike is not licensed to
provide financial product advice in respect of an investment in securities, and do not purport to give advice of any nature. An investment in any listed company, including Strike, is subject to risks of loss of income and capital.
Past performance
Past performance metrics and figures, as well as pro forma financial information, included in this Presentation, are provided for illustrative purposes only and should not be relied upon as (and are not) an indication of Strike’s views on Strike's future financial performance or
condition or prospects (including on a consolidated basis). Investors should note that past performance of Strike, including in relation to the historical trading price of Shares on ASX, production, reserves and resources, costs and other historical financial information cannot be relied
upon as an indicator of (and provide no guidance, assurance or guarantee as to) future performance, including the future trading price of shares. The historical information included in this Presentation is, or is based on, information that has previously been released to the market.
2
Cautionary note and disclaimer
Investment risk
As noted above, an investment in shares in Strike is subject to investment and other known and unknown risks, some of which are beyond the control of Strike. These risks, together with other general risks applicable to all investments in listed securities not specifically referred to,
may affect the value of Shares in the future. Strike does not guarantee any particular rate of return or the performance of Strike, nor guarantee the repayment of capital from Strike, or any particular tax treatment. When making any investment decision, investors should make their
own enquires and investigations regarding all information in this presentation, including but not limited to the assumptions, uncertainties and contingencies which may affect future operations of Strike, and the impact that different future outcomes may have on Strike.
Refer to Appendix A “Key Risks” for a summary of the potential risks associated with Strike, the industry in which Strike operates and an investment in Shares.
Forward-looking statements and forecasts
This Presentation contains forward looking statements about Strike. Often, but not always, forward looking statements can be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or
other similar words and may include, without limitation, statements in this presentation regarding intent, belief, expectations, plans, strategies and objectives of management, indications of and guidance on synergies, future earnings or financial position or performance, future
acquisitions, anticipated production rates or construction commencement dates, costs or production outputs for each of Strike and the future operation of Strike. To the maximum extent permitted by law, Strike does not make any representation or warranty as to the currency,
accuracy, reliability or completeness of any forward-looking statements contained in this Presentation.
Any such forward-looking statements are based on assumptions, qualifications and contingencies which are subject to change and which may ultimately prove to be materially incorrect, as are statements about market and industry trends, which are based on interpretations of
current market conditions. Investors should consider any forward-looking statements contained in this presentation in light of such matters (and their inherent uncertainty) and not place reliance on such statements. Forward looking statements are not guarantees or predictions of
future performance and may involve significant elements of subjective judgment, assumptions as to future events that may not be correct, known and unknown risks, uncertainties and other factors, many of which are outside the control of Strike. Any forward-looking statements
are based on information available to Strike as at the date of this presentation. There can be no assurance that actual outcomes will not differ materially from the forward-looking statements included in this Presentation. Investors should consider the forward-looking statements
contained in this Presentation in light of the risk factors included in Appendix A “Key Risks”, which identify the key potential risks associated with Strike, the industry in which Strike operates and an investment in Shares. To the maximum extent permitted by law (including the ASX
Listing Rules), Strike and its directors, officers, employees, advisers, agents and other intermediaries disclaim any obligation or undertaking to provide any additional or updated information, whether as a result of new information, future events or results or otherwise (including to
reflect any change in expectations or assumptions).
Nothing in this Presentation will, under any circumstances (including by reason of this Presentation remaining available and not being superseded or replaced by any other presentation or publication with respect to Strike or any other matter the subject matter of this
Presentation), create an implication that there has been no change in the affairs of Strike since the date of this Presentation.
Effect of rounding
A number of figures, amounts, percentages, estimates, calculations of value and fractions in this Presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this Presentation. All dollar values are in
Australian dollars ($ or A$ or AUD) unless stated otherwise.
References to working capital
Where this Presentation includes references to ‘working capital’ in relation to the use of proceeds of the Placement, the Company will hold this component of the offer proceeds to apply to such general corporate and site operating costs and working capital requirements as may
arise from time to time. Strike typically applies its working capital to satisfying expenditures in respect of suppliers, contractors and other vendors. The particular working capital uses of the proceeds from the Strategic Placement and the SPP will ultimately be determined by the
prevailing operational and financial conditions of Strike.
3
I. Strategic Placement overview
4
Overview
Strategic Placement to fund development of Strike’s core assets with South Erregulla on track for first production by
1 October 2026 and Strike targeting West Erregulla FID for 2H 2026
Strategic
Placement
• A$85-88m strategic placement in Strike Energy Limited by Carnarvon Energy Limited via a two-tranche equity investment (Strategic Placement), at an
issue price of A$0.12 per Share (Issue Price), with tranche 2 being subject to Strike shareholder approval
Purpose of the
Strategic
Placement
• Delivery of Strike’s strategy – Strike remains focused on executing its strategy to deliver reliable and flexible energy solutions that support WA’s
energy transition
• Non-underwritten Share Purchase Plan (of up to A$30,000 per shareholder) at the Issue Price to raise up to A$10m (SPP) (with the ability to accept
oversubscriptions for up to an additional A$5 million at the Board’s discretion) – subject to shareholder approval1
• Development of core, cash generating projects – Strategic Placement allows Strike to fund its core projects at West Erregulla, South Erregulla and
Walyering, which are expected to generate sustainable operational cashflows
• Funding certainty – Strategic Placement sufficient to fund Strike’s development plan whilst providing contingency and flexibility to deploy capital to
the highest return opportunities within Strike’s portfolio2
• Access to existing financing – Strategic Placement facilitates access to remaining Macquarie facilities3
• Australia’s future energy security – Investment strengthens Strike’s capacity to support Western Australia’s energy transition through successful
delivery of its tier-1 portfolio
Project
updates
• West Erregulla – Strike is focused on progressing work towards a targeted upstream and downstream FID in 2H 2026 to align with the 2026 Reserve
Capacity Cycle process for the 2028-29 Capacity Year to preserve downstream optionality
• South Erregulla – Strike remains on track to deliver WA’s first fully integrated gas-to-power infrastructure, with construction advancing inline with
targeted completion date of 1 October 2026
• Walyering – Walyering cashflow generative, targeting extension of production profile via Walyering West near-field exploration well
1. Further information regarding the SPP will be provided in a SPP Booklet to be dispatched to shareholders in due course.
2. Assuming completion of Tranche 2 of the Placement. Refer to the “Key Risks” contained in Appendix A, and specifically the risk under the sub-headings “Full completion”, “Completion of the South Erregulla 85MW Project” and “Additional future operating and
capital cost requirements”.
3. Refer slide 8 for further information on conditions to drawdown and availability of Macquarie facilities and “Key Risks” contained in Appendix A.
5
Carnarvon overview
Strategic rationale
About Carnarvon Energy
Funding certainty – Carnarvon’s strategic investment
provides funding certainty for Strike to unlock the value of
its high-quality Perth Basin asset portfolio
▪
Carnarvon is an Australian oil and gas exploration company, with interests in the Dorado &
Pavo fields in the Bedout sub-basin, Australia’s largest undeveloped offshore oil resources
▪
Attractive end markets – The strategic investment provides
Carnarvon significant exposure to WA’s domestic gas and
electricity markets. Carnarvon believes there will be an
increasing reliance on gas to support Western Australia’s
industry growth and energy transition as aging coal-fired
electricity generation assets are gradually retired
Actively exploring one of Australia’s most prospective oil and gas basins with the next well
expected in mid-2026
▪
Following the Dorado JV Operator’s recent decision to delay the Dorado development, the
Carnarvon Board has been assessing value accretive opportunities for shareholders – this
investment marks the conclusion of their Strategic Review and Carnarvon will cease to
progress their previously announced potential capital return
▪
Following the transaction Carnarvon will maintain a strong balance sheet with at least
A$96 million in cash whilst maintaining the ability to fund development of its own
portfolio, including the Dorado liquids project and exploration drilling planned for the
Bedout Sub-basin
Securing Australia’s Energy Future – Investment in Strike is
aligned with Carnarvon’s efforts to advance Australia’s
future energy security
Carnarvon Energy Assets
Strategic positioning – Strike’s high-quality Perth Basin
portfolio is uniquely positioned to capitalise on WA’s energy
transition, with the opportunity to deliver critical
infrastructure to aid Australia’s energy security
Bedout sub-basin
Bedout sub-basin
6
Use of Proceeds
Proceeds sufficient to fund Strike’s defined development plan
Funding sources
A$m
Notes
Placement proceeds (Tranche 1)
52
Placement proceeds (Tranche 2)
34 - 36
Tranche 2 placement, conditional upon the receipt of Strike shareholder approval1
Share Purchase Plan (SPP)
0 - 102
SPP provided to eligible shareholders to acquire up to A$30,000 of Shares at the Issue Price, subject to shareholder approval
Macquarie financing facilities
143
Inclusive of Asset Financing Facility (Tranche A / B) and Corporate Financing Facility (Tranche A2 / B1 / B2 / C) 3
Available cash (30-June-2025)
41
Cash on balance sheet as at 30 June 2025
Total sources
Tranche 1 placement of approximately 430 million new Shares under Strike’s available ASX LR 7.1 placement capacity
270 - 282
Funding uses
Completion of South Erregulla 85MW Project4
123
Completion of South Erregulla power plant development including delivery of upstream, generators, switchyard and transmission line
South Erregulla 15MW Expansion Project3
5
15MW expansion of South Erregulla (generators expected to be delivered under a Power Purchase Agreement / lease agreement)5
Upstream Field Development for West Erregulla
68
Strike estimated cost (STX share) to deliver first gas at West Erregulla (scope includes 2 wells, 2 work overs and upstream gathering network)6
Walyering West Well3
18
Walyering West-1 well targeting extension of production profile, plus tie in (on success) to the existing production facility
Ocean Hill Exploration Well3
15
Ocean Hill-2 exploration well to commence appraisal campaign
Working Capital and General Corporate Purposes
41 - 53
Total uses
270 - 282
Funds to provide contingency for defined development projects and flexibility to deploy capital to the highest return opportunities within Strike’s portfolio
1. Size of Tranche 2 is dependent on level of subscriptions under SPP and election by Carnarvon to top up its Tranche 2 Placement. Refer to Annexure A of Strike's ASX announcement titled 'Strategic Investment by Carnarvon Energy' dated 22 July 2025 for details of the Subscription Agreement.
2. The Strike Board reserves the discretion to accept oversubscriptions under the SPP up to an additional A$5m. Refer to the “Full completion” risk on slide 19 for further information.
3. Refer slide 8 for further information on conditions to drawdown and availability of Macquarie facilities and to “Key Risks” at the end of this presentation, including “Debt Financing” Risk.
4. If Strike is required to finance the Western Power scope upfront, the total Capital Expenditure is estimated at A$29 million which will be funded via this Placement and usage of Proceeds prioritized to core projects; South Erregulla, West Erregulla and Walyering.
5. Refer to the “Completion of the South Erregulla 85MW Project” risk on slide 19 for further information.
6. Estimated cost is Strike estimate and is subject to change following completion of engineering and other pre-FID activities and finalisation of field development plan and requisite Joint Venture agreements.
7
Pro forma financial position
▪
Pro-forma capital structure
Total Capital Capacity
–
As at 30 June 2025, Strike’s total capital capacity is comprised of its
A$41 million cash balance, A$88 million in undrawn committed debt
facilities and A$55 million in uncommitted facilities with Macquarie
Bank. Following completion of the Strategic Placement Strike will have
total capital capacity of up to A$282 million
Shares (m)
Cash (A$m)
2,868
41
733
88
Pro-forma (pre-SPP)
3,601
129
SPP (assuming fully subscribed)
83
101
Pro-forma (total)
3,684
139
Macquarie Facility (drawn)
-
74
Tranche
Use
Macquarie Facility (undrawn)
-
143
Tranche A2
($13 million)
South Erregulla and general Drawdown is subject to customary legal and
working capital
financial CPs associated with the project, expected
to be satisfied in September
Tranche B1
($17 million)
South Erregulla and general Subject to customary legal and financial CPs
working capital
following completion of the placement
Tranche B2
($23 million)
West Erregulla
Conditional on reaching an upstream FID at the
asset
Tranche C
($40 million)
West Erregulla (subject to
Macquarie credit approval)
Facility establishment is subject to credit approval.
Drawdown is subject to an upstream FID decision
and other conditions customary for a facility of this
kind and as determined by Macquarie credit.
Cash as at 30 June 2025
Strategic Placement (assuming Tranche 2 approved by
shareholders and Carnarvon maximum election)
Total Liquidity
A$139m
Cash and cash
equivalents
▪
Macquarie Financing Facilities
– The Macquarie Debt Facilities are inclusive of Tranche A (A$13.9 million
drawn of A$49 million committed ) and B (A$15 million, uncommitted)
of an Asset Financing Facility and Tranche A1 (A$60 million fully
drawn), A2, B1, B2 and C of a Financing Facility, subject to the following
conditions:
Conditions
282
A$143m
Debt capacity
A$282m
Total capital
capacity
1. The Strike Board reserves the discretion to accept oversubscriptions under the SPP up to an
additional A$5m. Refer to the “Full completion” risk on slide 19 for further information.
8
Equity raising overview
Strategic Placement
structure and size
• Carnarvon Energy Limited to invest approximately A$85-88 million to acquire approximately 712-733 million Shares in a two-tranche
placement, representing up to 19.9% of Strike’s issued shares, comprising:
– Tranche 1 to raise approximately A$52 million through the issue of approximately 430 million new Shares under Strike’s available
placement capacity pursuant to ASX Listing Rule 7.1 (Tranche 1); and
– Tranche 2 to raise approximately A$34-36 million through the issue of approximately 282-303 million new Shares which is conditional on
receipt of shareholder approval to be sought at a General Meeting, expected to be held on or around 11 September 2025 (Tranche 2).
The number of shares issued to Carnarvon under Tranche 2 will be dependent on Strike shareholder take-up of the Share Purchase Plan
(see details below)
• New shares issued under the offer will rank equally with existing shares on issue
Share Purchase Plan
• In addition to the Strategic Placement, the Company intends to undertake a non-underwritten share purchase plan to eligible shareholders to
raise up to A$10m (SPP), conditional upon the receipt of shareholder approval to be sought at a General Meeting, expected to be held on or
around 11 September 2025
• The SPP is to be conducted at A$0.12 per share, equivalent to the Issue Price
• Strike has the ability to accept oversubscriptions to the SPP up to an additional A$5 million at the Strike Board’s discretion
• Carnarvon has the right, but not the obligation, to be issued such number of additional Shares at the Issue Price after the issue of Shares
under the SPP to result in Carnarvon’s interest in Strike being 19.9%
Issue Price
• Placement price of A$0.12 per new Share issued under the Strategic Placement and SPP represents a 19.7% discount to Strike’s 10-day VWAP
of A$0.149 per share
Use of funds
• Refer to Use of Proceeds on Slide 7
Subscription Agreement
• Strike and Carnarvon have entered into a subscription agreement pursuant to which Carnarvon agrees to subscribe for the Shares under
Tranche 1 and Trance 2 (Subscription Agreement).
• The key terms of the Subscription Agreement are summarised in Annexure A of Strike's ASX announcement titled 'Strategic Investment by
Carnarvon Energy' dated 22 July 2025.
9
Indicative Timetable
Event
Indicative Date1
Placement
Announcement of the Strategic Placement
Settlement of New Shares under Tranche 1 of the Placement
Pre-market Tuesday, 22 July 2025
Tuesday, 29 July 2025
Extraordinary General Meeting
Thursday, 11 September 2025
Settlement of New Shares under Tranche 2 of the Placement2
Thursday, 25 September 2025
Share Purchase Plan
Record Date for eligibility to participate in SPP
Dispatch SPP Offer Documents and SPP offer open date
5pm AEST Monday, 21 July 2025
Friday, 8 August 2025
Extraordinary General Meeting
Thursday, 11 September 2025
SPP closing date
Thursday, 18 September 2025
Announcement of SPP participation and results and Issue of New Shares
Thursday, 25 September 2025
1. All dates are indicative and subject to change.
2. Issue of New Shares under Tranche 2 of the Placement, if approved by shareholders, will occur immediately after the issue of New Shares under the SPP.
10
II. Company Update
11
Preliminary Q4-FY25 results
Key Highlights for Quarter ending 30 June 2024
A$18.3m
(-1% vs prior period)
A$7.38
(-2% vs prior period)
Total Sales Revenue
Avg. Realised Gas Price
(per GJ)
A$105.28
A$3.3m
(-12% vs prior period)
(-56% vs prior period)
Avg. Realised Condensate
Price (per bbl)
Exploration & App.
Expenditure
A$23m
A$76.2m
(+118% vs prior period)
(+242% vs prior period)
Development Expenditure
Available Liquidity as of
30 June 2025
Commentary
▪ Total sales and average realised prices down due to FX
▪ A total of 2.3 PJe was produced at ~25 TJ per day in line with firm
offtake agreements with no change quarter on quarter
▪ Development expenditure includes:
▪ A$21.2 million at South Erregulla Peaking Power Plant
▪ A$1.7 million at Walyering relating to compression installation
▪ Exploration expenditure primarily relates to Natta 3D seismic survey
▪ As at 30 June 2025 Available Liquidity includes A$41.1 million cash
and A$35.1 million of available undrawn debt
▪ Remaining ~A$108 million of Total Capital Capacity is subject to
conditions of the Macquarie Facility described on Slide 8
Full details of activities in Q4 and FY25 will be included in Strike’s Q4 FY25
Quarterly Results to be released 30 July 2025
12
West Erregulla update
Progressing toward FID
▪ Upstream development funded – Strategic Placement along
with Macquarie Facilities funds upstream development1
▪ Equity lifting– Strike expects to equity lift its share of the West
Erregulla raw gas to its downstream solution
▪ Targeting FID in 2H CY2026 – Strike is progressing work towards
a targeted upstream and downstream FID to align with the 2026
Capacity Reserve Cycle process for the 2028-29 Capacity Year
▪ Downstream processing flexibility – Strike is progressing work
on the downstream solution, discussions ongoing with potential
infrastructure partners, positioning itself as a partner of choice for
Government and strategic stakeholders in support of WA’s energy
transition
▪ Seismic data acquired – West Erregulla and Erregulla Deep Natta
3D seismic processing and interpretation is expected to be complete
in Q4 CY2025
Downstream optionality
Development optionality
▪ Strike is focused on an expansion of its integrated gas-to-power
strategy with West Erregulla reserves whilst retaining flexibility to
pursue a hybrid solution or dedicated gas processing through 3rd
party gas processing infrastructure
▪ Downstream development will be sized appropriately for Strike’s
equity share of upstream gas flow from the West Erregulla field to
maximise value of gas resource whilst mitigating operational and
market risks
Downstream funding opportunities:
▪ Strike is currently engaged in discussions with a range of potential
infrastructure partners regarding the development of a gas-fired
powerplant and associated mid-stream infrastructure
▪ Processing facilities are intended to be funded under a ‘Build Own
Operate’ (BOO) model where an infrastructure partner funds
upfront capital expenditure in exchange for a life of asset toll
1. Based on Strike cost estimate for an FID scope of work including 2 wells, 2 workovers, engineering and network gathering construction and is subject to change following completion of engineering and other pre-FID activites and finalisation of field development
plan and requisite Joint Venture agreements. Refer to Slide 8 for details on Macquarie Facilities and Appendix A: Key Risks at the end of this presentation.
13
South Erregulla update
Strike is delivering critical energy infrastructure
▪
Construction is advancing in line with targeted completion date of 1 October 2026
▪
As part of the Strategic Placement, Strike has undertaken an internal review of the capital budget and
increased its capital allocation by A$13 million (~10%, including contingency) for existing Strike owned and
operated scope items compared to FID budget
▪
Western Power scope and costs – including a switchyard, network connection and associated network
improvements – have been revised to meet updated design requirements, with connection and network costs
increasing from ~A$6.6 million to ~A$34 million1
▪
Discussions remain ongoing to fund additional capital expenditure for the revised Western Power scope
through a deferred payment arrangement, with options including a tariff arrangement (which Strike currently
estimates could result in a ~15-30% increase in the estimated operating costs (A$1-2 million increase per year)
over the 20-25 year useful life of the project1)
▪
If Strike is required to finance the revised Western Power scope upfront, the total capital expenditure is
estimated at A$29 million which will be funded via the Strategic Placement
▪
Expansion of the South Erregulla power plant by 15MW is targeted for completion by 1 October 2027 to align
with the 2027/8 capacity year. Expansion FID is targeted for November 2025 (subject to award of capacity
credits and NAQ, to be determined in November 20
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