Oz Strike Energy Secures A$28mn Bank Facility

Sydney-listed Strike Energy has finalised terms with Macquarie Bank for an A$28mn (US$20mn) two-year debt facility to finance pre-development expenditure at West Erregulla project in the Western Australia’s Perth Basin, it said on October 9.

The facility is broken up into two tranches, with the first tranche of A$13mn committed, subject to definitive documentation and limited other conditions, and the second tranche of A$15mn subject to certain drilling milestones and further lender conditions and approvals.

“The facility enables acceleration of long lead procurement for the West Erregulla gas plant and frees up Strike to fund preparatory work for activity across a suite of Strike’s other Perth Basin assets, notably at South Erregulla and Walyering,” CEO Stuart Nicholls said.

Strike is partnered at the West Erregulla project with fellow Australian explorer Warrego Energy in a 50:50 equity split. The companies entered into a binding heads of agreement on October 8 for the joint development of the West Erregulla gas field.