By David Press on
1/19/2011 10:07 PM
Strike Energy ( STX-ASX) announced early this week, the sale of a number of their onshore gas producing assets in the USA for $21.7 USD. This strategic move comes as little surprise to those who paid particular attention to the company's AGM presentation, at which the management team hinted at a change in the company's strategy. Managing director, Simon Ashton, believes the sale now gives Strike Energy a 'war chest' of cash to explore it's high impact US and Australian targets and is a clear indication that STX's management prefer to unlock value than dilute share holders holdings with capital raising into low share prices.
According to Strike's public announcement, the sale of their Rayburn and Mesquite interests has netted the company $21.7m USD and equates to $2.63 USD per Mcfe of 1P reserves. The cash will be used to pay down existing debt ($5.8m USD) and close the remaining open hedging positions. The net result will leave STX with cash of just over $20m on the balance sheet, and exposure to their remaining interests, the recent Louise discovery, Steindorf (to be tested early February) and the suspended Muegge well. Additional to the existing and developing US assets, Strike Energy have large prospective CSG acreage in the Southern Cooper Basin and the FutureGas project, as well as their offshore Baniyas project in the north of WA. At a market capitalisation of around $60m at current share prices, it would appear STX offers investors large potential upside with limited downside risk. ...
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By David Press on
12/24/2010 4:25 AM
It's been a while since I wrote an update on the fortunes of Nido Petroleum ( NDO-ASX) in the Philippines, after last discussing their issues at Tindalo. The rough seas (pardon the pun) have continued, with a weather induced shut down of Galoc, further issues at Tindalo, after the much anticipated work over and unfortunately for shareholders, a request for more funds in the way of a capital raising. On the upside, depending on how you look at it, Nido managed to finalise the farm out deal for Gindara that has been touted for many a months now, with Shell Philippines Company (a subsidiary of Royal Dutch Shell).
Nido's crucial cash flow...
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By David Press on
6/29/2010 6:56 PM
 Strike Energy (STX-ASX) today announced the start of their much anticipated drilling program in the South Cooper Basin, South Australia. We made mention of Strikes problems starting this program in a recent blog here.
Strike are targeting a recoverable CSG resource of between 3700 and 9300 petajoules with a program of between 2 and 4 wells up to 1600m in depth, followed but up to 10 wells 600m deep. The acreage is close to nearby gas pipelines and tests will be performed around the viability of the resource for CSG potential, shale gas and UCG. Capital requirements should the testing prove successful will be reduced due to the close proximity of said pipelines and ease of access to markets.
Success here should see a serious re-rating of the company's...
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