Earnings call transcript: Strike Energy Q4 2025 unveils strategic growth plans

Strike Energy Ltd (STX) recently held its Q4 2025 earnings call, unveiling ambitious growth plans amid a challenging energy landscape. The company reported strong financial performance with significant revenue contributions from its Wollering field. The market responded positively, with STX shares climbing 4.76% to close at $0.105. With a market capitalization of $33.6 billion, Strike Energy has shown remarkable momentum, delivering a 59% return over the past six months. According to InvestingPro analysis, the stock is currently trading near its Fair Value, supported by 15 key investment factors available to subscribers.

Key Takeaways

• Strike Energy is advancing its South Eregala power plant, set for an October 2026 launch.
• The company reported $18.3 million in sales revenue, with robust gas production of 2.3 petajoules.
• Strategic initiatives include exploring the Ocean Hill project and expanding its power plant capacity.
• Available liquidity stands at $76 million, supporting future growth endeavors.

Company Performance

Strike Energy demonstrated strong operational performance in Q4 2025, leveraging its high-quality asset base to maintain a steady gas production rate of 25 terajoules per day. The company is strategically positioned as Western Australia’s newest gas provider, benefiting from its integrated gas-to-power model. With government support for gas-fired power generation, Strike is well-placed to address the region’s declining gas reserves.

Financial Highlights

• Revenue: $18.3 million, driven by the Wollering field’s significant contribution.
• Total gas production: 2.3 petajoules, maintaining a production rate of 25 terajoules per day.
• Available liquidity: $76 million, combining cash and undrawn debt facilities.

Outlook & Guidance

Strike Energy is poised for growth with several strategic projects on the horizon. The South Eregala power plant is on track for completion by October 2026, while the company plans to initiate the Ocean Hill exploration well late next year. The potential expansion of the Wollering field and strategic funding through a $88 million placement by Carnarvon will further bolster its growth trajectory. Analyst consensus suggests optimistic growth prospects, with EPS forecasts of $10.44 for FY2026. InvestingPro subscribers can access detailed analyst forecasts and 12 additional investment tips for Strike Energy.

Executive Commentary

CEO Peter Stokes emphasized the company’s strategic positioning, stating, "We will be Western Australia’s newest gas provider, becoming the first fully integrated gas-to-power provider in Australia." CFO Tim Cooper highlighted the strategic focus on gas-to-power, underscoring the company’s commitment to leveraging its strong asset base.

Risks and Challenges

• Declining gas reserves in Western Australia could pose long-term supply challenges.
• Market volatility and fluctuating energy prices may impact financial performance.
• Potential delays in project timelines, such as the South Eregala power plant, could affect growth plans.
• Regulatory changes in the energy sector could influence operational dynamics.

In summary, Strike Energy’s Q4 2025 earnings call highlighted a robust financial performance and strategic initiatives aimed at capitalizing on regional energy opportunities. With a focus on expanding its asset base and enhancing its gas-to-power capabilities, the company is well-positioned for future growth. The company maintains a healthy financial profile with an InvestingPro Financial Health Score of 3.05, labeled as "GREAT." For comprehensive analysis of Strike Energy’s investment potential, including detailed valuation metrics and growth projections, explore the full suite of tools available on InvestingPro.

Full transcript - Strike Energy Ltd (STX) Q4 2025:

Emma, Moderator/Host, Strike Energy: Alrighty. Might kick things off at 08:30. Good morning, everyone, and welcome to Strike Energy’s, q four f y twenty five quarterly activities and financial webinar.

Thanks for joining us this morning. We’re gonna run this very similar to the way we have in the past. I’m joined by Peter Stokes, our managing director and chief executive officer, and our chief financial officer, Tim Cooper. Shortly, I’ll hand over to Peter to give a presentation, and then we will follow this up with a q and a at the end of the session. Thanks to those who have already submitted some questions.

If you have any questions that you wanna ask and haven’t pre submitted, please use the open chat button. If you use the pre submission, it’ll be difficult for me to find them. So use the chat button in the webinar. And this will be the session will be recorded and posted on our website by around this afternoon. So over to you, Peter.

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: Thanks, Emma, and welcome to the call as well. Really appreciate the opportunity to talk to you all. And as Emma said, we’re happy to take as many questions as we can at the end. And I think the other thing we’ll also do is try and address any that we can’t get through. We often get quite a few and we’ll go through the ones that have been posted already first and then try and address as many as others as we can.

The front slide you’ll see there, we’ve had a lot of progress up at South Eregala on our precinct on the farm that we own. You can see in the background there that’s the engine shed. It’s about half built now so the roof and other parts are on most of the shed now as well. And in the foreground, you’ll see the makeover of the key gas well that we’re doing the work on at the moment. So you can take away from that is that we’re progressing really well with our integrated power solution up at South Erogela.

We’re still very focused on ensuring that we get that online by the October 1 year. And we’ve been getting senior management up there regularly to engage with the teams on-site and the various contractors as well as ensuring that we’re still driving that progress and in parallel engaging with key authorities in government to ensure that all of the various parts that we’re working towards particularly with Western Power on the line, the connection line which we’ll come to a bit later, is all in place so that we can go live as planned. If we just go to the next one please Emma. So in summary, I think a couple of things. The last time we were on the webinar we talked about the strategic review.

We’ve now and we’re happy to go through some of that. We’ll pick up some of the key points from that and that’s a critical part of where we are now and where we’re heading. I also wanted to ensure that we’ve now done the transition. Jill Hoffman has handed over to me to to lead the company. I wanted to thank Jill for all the work that she did while she was in a seat for the last six months or so.

Last week, we announced the strategic investment by Carnarvon in the business of $88,000,000 via a placement in addition to the $10,000,000 share purchase plan that we’ll have in parallel with the option to increase that by another $5,000,000 if there’s that level of interest. Ocean Hill continues to progress well and we’ll be able to provide an update with the full year results. But the Ocean Hill three d seismic work has identified a number of really attractive targets that we’re looking to do an exploration well on on the back end of next year. And as I said, the 85 megawatt peaking plant at South Erickiella continues to progress well. On that note, I’ll hand over to Tim to talk through some of the financials, and then I’ll pick up the operational part of the business again.

Tim Cooper, Chief Financial Officer, Strike Energy: Thanks, Peter, and welcome, everyone, this morning. Look, it’s been a strong quarter for Strike. Sales revenue at $18,300,000 The operations team has done a great job in maintaining production at 25 terajoules a day to meet our firm contracts for a total of 2.3 petajoules. The realized price there for gas and condensate, the reduction there is just a reflection of The US denominated contracts and foreign exchange. Excuse me.

On exploration and appraisal, that’s predominantly the NADA three d seismic work of which we’ve we’ve communicated previously that that’s with independent certifiers at the moment and expecting those results and share those with the market in December 25. Development expenditure in line with current forecast on South Aragala peaking power plant at 21,000,000 and the well year end compression project of 1,700,000.0. And that compression is expected online in January to support ongoing production at Wollering. Available liquidity is a combination of cash at thirty June and undrawn debt of 76,000,000 And I can confirm that that tranche one cash $51,600,000 has been received from Canavan already. So I think well placed going forward after a strong quarter.

And Peter, I can hand back to you.

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: Thanks, Tim. I’ll run through each of the projects, the status in the last quarter. So starting with West Eregella and Eregella Deep. So a key part of the strategic placement enables us to continue to work down towards FID at the back end of next year, which is our target. We’re working closely with our joint venture partner on doing that.

We’ll refine the works that need to be done at least one well and a couple of makeovers over the next number of months. We’re working through, as Tim said, on the Erigela deep seismic work from another survey seismic work. And then we’re also looking at working through what the downstream developments look like for both ourselves and our joint venture partner. On South Erigela, the integrated power plant continues well on target for construction and we’re now looking at the option of an additional 15 megawatt expansion which would come online a year after the current project goes live next year. At Weldiering, we’re producing online, producing at nearly 98% capacity at the moment.

We’re producing 25 terajoules a day to both with gas going to both Santos and Atlanta. We generated around $70,000,000 of revenue for this last year the field and we’re now working on a number of projects including compression and near field exploration to continue to ensure that we can develop, can produce at similar rates and ongoing for that project through to the end of the Santos contract. Exploration wise, the seismic data that we’ve done around Ocean Hill is in final stages of interpretation. That’s being taken through third party verification and we’ll share that as part of the year end results. But as we said earlier, that’s looking quite perspective from what we’re seeing.

The strategic placement really enables us to then look at options of how we move that forward of that project subject to us locking in a couple of other key costs in the meantime. But current intention is to start on the exploration well towards the end of next year. On the next slide, the rationale for the transaction with Carnarvon. So we have an $85,000,000 to $88,000,000 strategic placement by Carnarvon in strike by a two tranche equity investment. Issue price was $0.12 as we had talked through last week, with the tranche two being subject to shareholder approval and I’ll run through some of those dates shortly.

There’s a non underwritten SPP for up to $30,000 a shareholder at the issue price to raise an additional $10,000,000 with the ability to accept over subscription for another $5,000,000 subject to shareholder approval during next month. Key purpose of the strategic placement, it really enables us to deliver on the strategic plan that we talked about earlier. Four key areas that we’ll focus on taking West Erogela to FID, finalizing and getting the revenue generated from South Erogela, working through an expansion of South Erogela, doing the additional work at Wahiri to ensure that it continues to produce at current flows. And then towards the end of next year, as we start to generate funds or revenue out of South Eregala, the ability to commence our exploration at Ocean Hill and then down the track at Catasthenia as well. It enables us really to deliver on the strategy of the business, ensures that we can then start to deliver our integrated solution.

And it also now starts to give us options about how we and our joint venture partner develop the West Aragalla project beyond next year once we’ve got FID in place. The timetable, which was outlined last week, the placement was announced on the twenty second settlement. As Tim said, actually happened last week. So on Friday, we received the funds. There’ll be an extraordinary meeting on the September 11, and the record date for eligibility in the SPP was last at 5PM on the twenty first.

The documents will come out on the August 8 and then with an extraordinary meeting on the September 11 and a close date for the SPP on the September 18 with the announcement of the SPP’s participation and results and issue of shares on the September 25. Just to really reiterate what we talked about in the strategic review update, Stryker’s business is exceptionally well placed in the WA energy market to be a critical enabler both for power generation and gas. It’s very clear from some of the recent announcements from the government and the various authorities that there is a looming gas gap and also a large opportunity for gas fired both peaking and mid merit power over the next number of years. We will be able to deliver reliable and responsive gas, so our peaking plant is able to start up on short notice. As we alluded to last year in FID, it’ll run around 20% of the time and fill a critical gap with the renewables that are now in the market in the evenings as battery power runs out, the peaking power becomes a critical part of that.

It’s been strongly endorsed by the government and that’s reiterated by the encouragement to put an additional 15 megawatts as well as what we’ve been talking about for West Erogela where we’re looking to use that gas to generate to provide an additional around 200 megawatts of mid merit power. So as we work through FID next year, those options will become much clearer on West Erogela. It’s also very clear in the WA market that there are declining gas reserves and we’re well placed to provide additional gas through a number of our assets, whether that be West Erogela, Wadiering and Ocean Hill and down the track Catafinha also. There’s also some of the policy shifts that the government is now starting to make are really providing opportunities for us to provide gas into the domestic additional power into the market as it’s required. So in summary, the investment highlights for the business as we are Western Australia’s newest gas provider, we’ll become the first fully integrated gas to power provider in Australia and thereby unlocking higher margin opportunities for the business.

We have a high quality asset base. We’ve got tier one resources in a location that’s very well located both between the two key pipelines in Western Australia, but also importantly close to the electrical infrastructure so we can connect into that and provide additional power. We do have options of how with the downstream optionality of what we do at West Erogela, and there are a few options that will become clearer as we work through towards FID next year. And so that would our intention is to have get to FID with our joint venture partner by the end of next year and then be able to, in parallel with that, lay out the options of where we will go with that gas from West Eregala. Our Wahliering project was successfully delivered and continues to produce gas at very high availability, and it was delivered in a very short time frame.

The funding that we now have ensures that we are fully funded through to develop our core projects as outlined in the strategic review. On that note, Emera, I’ll hand back to you, we can start to go through some of the questions that have started to come through.

Emma, Moderator/Host, Strike Energy: Alright. Thank you, Peter. Yeah. We might we might kick off with probably the most asked question that we’ve had come through, and that is to help everyone understand in detail the cost increase behind the Western Power costs. So what are like, what assumptions have changed since FID?

Yeah. If you could help us go through that.

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: Sure. So I think as we talked to last week in our announcement, there has been an increase in the South Eregala overall cost. The core cost of what what we’ve done there, there’s about a 10% increase in the directly controllable costs by strike. And I think that the area that we’re working through at the moment and we’ve taken a conservative view of what we need to do to link our power plant into the network. We’re working closely with Western Power to really get to the bottom of exactly what the costing will be.

So what we’ve got is a total cost to integrate our power plant into the power grid near Three Springs, quite 15 kilometers from our property. A number of parts of that are now locked in and clear. A number of other parts as we work through with Western Power, it’s clear that both the line capacity the lines are near or the infrastructure is near capacity. And we also need to agree with Western Power what is actually shared infrastructure and what will be ours. And so that’s an ongoing discussion with the Western Power team and our technical team.

As that becomes clearer, be able to make some announcements of where that gets to. The second part of that is that we’ll work with Western Power on different ways to fund that so that we’ll look at options of whether there’s some joint funding of that of the capital that’s required, potential to recover some of that then from by Western Power through tariffs and or us through the energy that we provide so that there’s not a full upfront. But to be conservative, we’ve taken a view to in our planning that we have the full $30,000,000 in there at the moment. There are some rebates that will come through that as well, but we haven’t finalized that yet. So we’ve taken, as I said, a pretty conservative view to ensure that there’s no additional costs that come through for South Eregala.

And we’re also we’re pushing forward that project forward as quickly as we can, including the testing that needs to be done, so the planning around that testing to ensure that we’re on line before by or before the October 1 next year.

Emma, Moderator/Host, Strike Energy: Yeah. Great. That leads into the next part of the question, which was, have there been any delays to the project? And, you know, do are you still confident in the 10/01/2026 deadline to get the capacity credits? And when do the when when do the engines arrive in country?

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: Yep. So we maybe take the last one first. So the first of our engines, they’re coming in in twos and threes each month. The first arrive late next month, early September, so they’re already being shipped. We have 20 engines altogether, so they’ll start arriving.

Yes. Twos and threes each month, we can then start to install those into the shed. All of the infrastructure for the shed is will be completed by the end of the month. And then key other components, mufflers and other things have started to arrive. Installation team will start on-site over the next couple of months and start putting those in.

And then the infrastructure around those is being built in parallel. On the timing, we’re confident that we can still hit the October 1 year. The back end, several months are late, and that is in place for cold testing with Western Power. Our joint intention is to try and reduce that testing time for the gensets and the integrated power solution. And that’s what we’re working to.

But at the moment, our timelines line up with delivery before October year.

Emma, Moderator/Host, Strike Energy: Yeah. And what options are available to defer the payment for that Western Power portion of scope? And if deferment is possible, will this make additional cash available for exploration at Wollering and Ocean Hill?

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: Yes. So I think so just to clear on that one too. So we will do at the moment, the way we’ve done our planning, we’ve assumed that we have to fund all of that $30,000,000 from capital. Our discussions with Western Power though, they are very open to different concepts around how they would contribute capital and recover some. And then also the other part we’re working on with them is what is shared infrastructure so that we would not know that we would actually share the cost of whether that’s substations or connections or other things as well.

So but the options for payment could be through tariffs that we get charged or through us providing energy and we don’t get that full revenue, but we effectively OpEx that cost as opposed to capital. Our intention is still subject to where that lands, the funding enables us with both tranches in place and the SPP. We will be funded to do the first Ocean Hill exploration hold back end of next year, by which time we’ll have revenue coming in from both Wahlieren and South Dirigala GATT power plant.

Emma, Moderator/Host, Strike Energy: Great. And then there is a question around that, which hopefully this has answered, but maybe just to make it clear, why is the drilling for Ocean Hill two only planned for the latter part of next year? I know there’s a lot of people who are excited to get Ocean Hill drilling and see what that has. But, yeah, as Peter said, we’re we wanna make sure our our development projects are fully funded first.

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: Yeah. So I I think yeah. I I mean, it’s pretty simply that, Emma. It’s we want to ensure we’ve got revenue that the South Eregala revenue generating project up and running and delivering. That program is clear for them as well and and have that locked in to deliver the three wells that we will drill.

Emma, Moderator/Host, Strike Energy: Great. We might move to Wollering. There’s a few quite a few questions coming through on Walliering. If if you could clarify if the proposed Walliering West well is to support one p reserves or migrate contingent resource into reserve category, I might take this one. So Wollering West is a new field.

So that’s a a separate field that sits out to the west of Wollering. We don’t currently have any perspective or contingent reserve resource in that area. So any success at Wallyering West will add reserves or resources to to the Wallyering West field. It’s not to support Wallyering field itself. That way, it’s not a development well.

So hopefully, that clarifies that.

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: The other thing, Emma, maybe just to add on that one is we have done three d seismic across that now too. So I think one of the things that we are ensuring that we do on all as we move from exploration into production, we, as a group, are generally happy with two d to do exploration wells, although that’s set at Ocean Hill. We’ve now run three d. And we’ll do we’ve done three d site or combination of three d and two d for the West Wellyering well. And so and that’s and we also the other thing that we’re doing on all of these is, one, independently verifying our proposed targets.

And then also, as we’ve previously always done independently, we verify all of our reserves and updates that we’re doing, and that’ll flow into our August numbers when we do and our year end numbers when we do an update of all of the reserves across the group. And as Tim said, we’ll have that for West Erigela a bit later in the year. We’re using another party to do that, and that’s in progress, but that’ll be provided by the end of this calendar year.

Emma, Moderator/Host, Strike Energy: Yeah. Tim, maybe one for you on Wallyering. We’ve got 1,700,000.0 against the cost of wall airing compression in the quarterly. Is that the total cost or is there more to come? Can you provide some guidance around the cost for compression?

Tim Cooper, Chief Financial Officer, Strike Energy: There is some further costs to come. We’re leasing those units, so we’ll see them in the operating cost as we move forward.

Emma, Moderator/Host, Strike Energy: Yep. Cool. Great. We Peter, what is Strike’s current estimate of the amount of recoverable gas in Wollering East and is there any chance that that will be tied into the facility in the future?

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: So Wahgnion East, currently it’s around 8.5 Bcf, but it’s still subject to well testing. So we did that well. Our intention is when we do Wahgnion West and do the production testing there that we would swing that unit across to do Wahiliering East. We haven’t given and we talked a little bit about this in the strategic review update. Given where it’s located, unless there is significantly more gas for some reason than where we currently think, our expectation is that we’ll tie that into the facility a bit later in in its life.

So get one year in west up and producing, it’s about two or three kilometers to the west of the plant, and we can run the connect that one in fairly simply. The connection to east is a little bit more challenging. We need to run under the highway, and it’s a little bit further distance. And there’s some native vegetation that we’ll need to get approvals for as well. So we do see it connecting in, albeit later into the life of the field.

Emma, Moderator/Host, Strike Energy: Yeah, great. What is the expected field decline profile looking like for Wollering and what is the contingency if Wollering West doesn’t find additional gas? Tim, maybe that’s one for you.

Tim Cooper, Chief Financial Officer, Strike Energy: If we don’t don’t find the initial gas to to backfill, potentially some extension in the field there. We have to work with the parties, Santos in particular, around how we manage that gas supply. We are able to buy gas on market to backfill those contracts and supply at an alternate delivery point. We have engaged with Santos early on potential risks around compression, and we’re quite supportive with Santos in engaging on that flexibility. A worst case scenario, there are LDs applicable to not delivering on that contract,

Emma, Moderator/Host, Strike Energy: and we’ll manage that risk as we move forward if it crystallizes. Okay. Back to Ocean Hill briefly, there’s a question that’s come through from the Ocean Hill appraisal. Is there any obvious location for the exploration well? And will the risk resource update be provided to the market prior to the September 11 EGM?

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: Mr. Yes, there is. We have a target there, which we’re just working through. That independent verification will confirm that, but the team have a preferred location for the well. That will be provided as part of our or the update will be provided as part of our August reserves update at the year end.

And I think that will be clear. I’m not sure there’s anything else to add, Emma, to that one, but that’s when we’ll have an update of the reserves based on the three d seismic that we’ve run. I’m not sure one of the other things that I’m not sure is quite clear is we haven’t been sitting around waiting to do the seismic work at Ocean Hill. We actually we’ve had approvals in there for several years. It took a long time to get those approved given the native vegetation that we needed to run the three d seismic over.

So three d seismic requires a much closer spacing running, obviously, at 90 degrees to each other. And so we need that took a while, and we’ve run that as soon as we’re able to. And then that interpretation is running to schedule. But as I looking really positive from what we’re seeing of something and we’ll be able to provide a lot more detail around that as we get the final results over the next month or so, and then we’ll release that with the result with our August update.

Emma, Moderator/Host, Strike Energy: Yes. Great. And apologies, jumping around a bit. But back to Wally Erring, there’s a question that says in the quarterly, it mentions fabrication of compressor packages. Are these compressor packages for export gas compression or wellhead booster compression?

So I just wanted to clear that up and and make sure that everyone knows that that’s for field extension wellhead compression, not not export as we’re we’re we’d be unable to export gas from ball airing at this stage. And then a

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: couple of other things, you know, the cooling and some of the other things that we’re doing there as well. So it’s a structure there’s a program of managing the reserves there. And then as part of that is doing the additional well at West. And then as I said earlier, looking down the track and potentially tying in the East Toll once we’ve got West up and running.

Emma, Moderator/Host, Strike Energy: Yep. So I might touch on West Aragalla for a few questions. Noted So in the report, the dedicated processing through third party gas processing infrastructure, does this mean that the AGRG operated processing facility for West Aragalla has been abandoned in favor of third party tolling? And is there any cost to the company moving away from this owed to AGIG?

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: Tim, do you want to do that one?

Tim Cooper, Chief Financial Officer, Strike Energy: Yeah, happy to. Look, Strike’s strategic plan as as we’ve we’ve laid out is is about gas to power. And so, you know, our plan is to work along the lines of that power plant development. Part of that is to consider maintaining access to gas market and some some raw gas being provided through a a tolling arrangement. We’re still considering all those options and how to best optimize that downstream project.

In terms of the AGIG, that is not the current priority, and I don’t believe we’ve incurred material costs. Obviously, there’s corporate costs involved in in progressing that and discussing the opportunity. I couldn’t give you the value on that, but there is no no trailing cost on that opportunity. But to be clear, we’re progressing that downstream option in gas to power generation.

Emma, Moderator/Host, Strike Energy: Yep. Great. There’s been a question around the current status of the West Aringola JV and why there’s been another delay to the to FID and whether you can provide any color or certainty around what’s required to take FID in the second half of next year.

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: Yep. So I’ll jump in, then maybe you can add, Tim. So at the moment, we’re working with our joint venture partner through a couple of things. So one, each year we agree That’s in process at the moment.

So one of the things, you know, we are jointly focused on getting to FID. Strike is the operator who has put a plan to our joint venture partner shortly that outlines what we think needs to be done with FID. Our joint venture partner will then review that. And at the moment, you know, our current thinking is an additional well, well six, and then two workovers during the year that will enable us to have surety around how we get to FID. And then as we work with with them, we will start to look at how the lifting arrangement works.

There’s there’s still some things to work through there if we were to process gas separately or or jointly, but that’s that hasn’t been agreed yet. So we we need to work through that process.

Tim Cooper, Chief Financial Officer, Strike Energy: Yeah. Look. I think from from my perspective, joint venture is working together to define exactly what steps are required to reach f upstream FID. We’re aligned in progressing that as quickly and as effectively as possible, and we’ll we’ll communicate with the market as soon as we’ve reached that formal agreement on those activities and a time frame. Clearly, strikes time frame that we’re working towards is that second half twenty six, and and we expect to do everything in conjunction with the joint venture to achieve that outcome.

Emma, Moderator/Host, Strike Energy: Yeah. There’s there’s also a comment on here that I just wanted to address that, you know, saying that the explanation was that Hancock needed to assess their options at the two most recent wells on their permits, which have been completed for some time now. If you go to Minres Mineral Resources quarterly that they released this morning, they’ve actually outlined that Lockheer 6 is still under assessment and that they’re you know, that that will feed into their contingent payments. So they’re still clearly assessing their fields. Not that it’s not that it’s an excuse, but that is still happening concurrently.

Alright. We might move on to the strategic placement that we have a few questions coming in on. Was the Peter, was the placement to Carnarvon or another party recommended as a result of the strategic review? And if it wasn’t, when did the company determine it was required?

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: MR. I think so having coming on the end of it, I do through that process funding options were through the strategic review process, various funding options for the business became clearer as we wanted to develop these key assets. I think one of the things that became clear, and it’s for Tim and I coming in, looking at the project, challenging the team of where we’ve got to, particularly at South Erogela, made it clearer that we needed additional funding in the business going forward. And also enabling us to move the West Arrigala project to FID requires additional funding, which we just didn’t have in the business. And I think that became clear as we started to as we locked in the strategic view plans and actions, we have a very strong asset base as we talked about.

We had the discussions with Carnarvon had started before Tim and I joined and evolved over time to a point where we landed on the placement, which was something that worked for both organizations. There have been various things we’ve considered, but this was the one that ultimately landed that was able to be executed by both companies.

Tim Cooper, Chief Financial Officer, Strike Energy: If I could add to that, Emma, just in terms of timing, I think it’s important to understand, look, the discussion around long term funding has been there for some time. And the board was considering how best to approach and timing for that funding. What became apparent as we’ve released, you know, recently with South Theragalla, some risk of what we’re hearing, etcetera, The time frame for that funding had shortened somewhat in the very recent past. And so as those discussions with Carnarvon had evolved over time, the consideration for this particular outcome did have to take into account some of the more recent developments within the business and the demand for that cash flow, particularly on the South Aragalla side where this increase that we’re referring to at the moment is to be realized between now and December.

Emma, Moderator/Host, Strike Energy: Tim, maybe this is a good follow on for you. In the announcement last week, there were comments around the strategic partner having oversight on permitted expenditure. Is this a condition precedent reinvestment and is everything that’s being proposed broadly aligned reprioritizing cash flow versus discretionary?

Tim Cooper, Chief Financial Officer, Strike Energy: Look, I think the easiest way to look at it is through these discussions with Carnarvon, we’ve obviously been sharing the strategic direction as we have with the market. Our view is to prioritize those cash generating projects as quickly as possible. And as soon as we have that certainty as to getting to expiration and create that pipeline for further cash generation down the track. There is reference to your prioritization of cash flows in this transaction. So there is I wouldn’t say there’s oversight, but we’ve agreed, you know, Stripe has committed to deliver on the prioritization of this expenditure as we’re outlining at the moment.

So I don’t think there’s there’s any sort of obligations beyond what we’re committing to market at the moment. That’s no different to what we’ve committed to Canarvon is to prioritize that expenditure as we’ve outlined already.

Emma, Moderator/Host, Strike Energy: Yeah. Peter, maybe this is one for you. What options will be explored if shareholders vote against the second tranche of funding? Perhaps you can provide some color on the need for that second tranche of funding. Yeah.

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: So maybe just step back. So the first tranche of funding enables us to do a couple of key things: ensure that we finish South Erogela as planned, progress with our FID on West Erogela and also enables us to get and do the well year in West Hole. We start to get pretty tight after that. I think the challenge for us is without the second tranche is it really constrains what we can do at Ocean Hill. So I think and many of our shareholders have been engaged in this business for a long time as an explorer.

We’re moving the business to be both an explorer but also having strong revenue streams So for me, I think it’s an important part to have that the second tranche. Should it not happen, I guess we would be looking during first half of next year, looking at different options about how we would refinance the business, whether that’s with some of our current providers and look at other options about what that might look like. But I think it’s certainly for me, I think having a business fully funded makes a lot of sense as a shareholder in the business. So I think it enables us to have the opportunity to deliver the key assets we want to as well as ensuring that we can bring on Ocean Hill, get that into a production status as soon as possible.

Emma, Moderator/Host, Strike Energy: Yeah, great. And maybe this leads in. There’s been a couple of questions around this and maybe we’ll finish on this one given the time. But perhaps you can just provide a bit of an overview how successful or were the recent institutional roadshow that we were on last week? Provide a bit of color around.

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: Yeah. So last week, we did an investor road show on East Coast. We had quite a number of meetings. I think a lot of interest in Stripe as a business. I think there is definitely a recognition that we have a great asset base.

I think there’s an understanding that without the right funding, we can’t bring that to market. And I think that was a clear takeaway from last week. I think, clearly, have work to do, being really frank with both our shareholders and potential new shareholders around our credibility. So delivering these projects is critical. So having a long term production profile at Wallyering is really important, delivering South Darugala on plan as we said we would.

These are the questions that we got asked very similar to today. But I think also importantly, working with our joint venture partner on how we bring West Eregala to market and having a clear plan on that was one of the big areas that we got asked. But I think overall, I think positive feedback on the company, positive feedback on a reset. I think I’m in a unique position coming in as a new CEO to be able to go look at where we are in the business and say, here’s how we go forward with the insights from the strategic review. And I’m very strongly support the four focus areas that we’re focused on.

And I think that will give market confidence as we deliver against each one of those. I think the other thing that we probably took away was regular communication to our shareholder base I think we’ve not always we haven’t done that regularly enough, particularly the last number of months. Without the permanent CEO in place, that was difficult. And I think we need to we will ensure that we keep engaging the market regularly to bring updates as they as we’re able to.

Emma, Moderator/Host, Strike Energy: Great. Alright. Well, we might wrap up there given time, but thank you, everyone, for joining. And as I mentioned, this will be recorded and posted on our website in case anybody popped in late. But thank you, and talk to you soon.

Peter Stokes, Managing Director and Chief Executive Officer, Strike Energy: Thank you.

Tim Cooper, Chief Financial Officer, Strike Energy: Thanks, everyone.

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