Strike Energy (STX) Status update summary

Strategic project milestones and partnerships

• Achieved a major milestone with the West Erregulla project, targeting first gas by early to mid-2029 and aiming for 251 PJ in gas sales over its project life, with a 43.5 TJ/day production rate underpinned by 2P reserves.

• Secured strong alignment and binding agreements with Hancock Energy and joint venture partners, including fixed capacity charges, pre-FID funding, and gas processing at the proposed Belisama Gas Plant.

• Accessed an AUD 30 million Macquarie facility and a $30M Hancock-funded loan, ensuring funding through pre-FID activities and financial flexibility.

• No need for additional capital raising for West Erregulla due to revised loan terms and Hancock partnership.

• Transition of operatorship to Hancock post-FID, while retaining 50% field ownership and equal rights under the joint operating agreement.

Project execution and timelines

• Pre-FID activities include drilling West Erregulla 6 and workovers on three wells, with execution of long-form agreements targeted by year-end.

• West Erregulla expected to come online in early to mid-2029, aligning with anticipated WA gas market shortfalls.

• South Erregulla Power Station (85 MW peaking gas plant) is in final commissioning, with some delay due to network integration and dynamic modeling with Western Power and AEMO.

• Walyering facility continues to produce under firm offtake agreements, targeting a ramp-up to 20+ TJ/day and generating ~$52m in annual revenue.

• SEPP and Walyering are near-term catalysts for production growth and commercial operations.

Financial outlook and revenue streams

• Multiple revenue streams expected from Walyering gas, South Erregulla capacity credits and electricity sales, and West Erregulla gas sales.

• South Erregulla capacity credits projected at AUD 19–20 million in year one and late AUD 20–30 million in year two, paid weekly once online; SEPP expected to generate ~$52m in capacity revenue over its first two years.

• West Erregulla projected to generate AUD 60–80 million in annual cash flow at current market prices, with all gas uncontracted and available for market.

• Funding for major projects secured through Hancock and Macquarie, with flexibility to pursue further exploration.

• Market capitalization stands at $414m, with reserves and resources valued at $0.68 per GJ (2P + 2C).