Ann: CEO Transition and Strategic Review, page-85

Strike Energy boss to exit after gasproducer’s torrid year

Mark WembridgeResources reporter

Jan 16, 2025 – 10.10pm

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StrikeEnergy will part ways with its chief executive and launched a strategic reviewafter a torrid 12 months that slashed the struggling gas producer’s share pricein half.

StuartNicholls will depart as chief executive on February 14 after almost 8 years atthe helm of the West Australian-headquartered explorer, the company said lateon Thursday.

FormerWoodside executive Jill Hoffman will step in as acting chief executive until apermanent replacement is found.

Stuart Nicholls has quit as chief executive of Strike Energy.

Strike haslong been identified as a possible takeover target, given its low share priceand its attractive assets in the Perth Basin gasfield.

The groupis jointly developing the West Erregulla project with iron ore billionaire GinaRinehart’s Hancock Prospecting. That development has been delayed after MrsRinehart bought Mineral Resources’ WA onshore gas assets for $1.1 billion lastyear.

MrNicholls, a former soldier in the Australian Army, oversaw significant growthat Strike. However, the group is transitioning from an explorer to a producer,and the board told investors that a change was required.

“MrNicholls has provided leadership ... through a period of growth and change,”said John Poynton, Strike’s chairman.

“He hasgrown the company’s assets base from a single exploration project in SouthAustralia to one of the largest gas resource positions in the highly attractivePerth Basin, with exceptional further prospects.”

Strike hasalso commissioned a review to be led by deputy chairman Nev Power.

“Strike’sproject portfolio is undervalued by the price at which its shares have tradedon the ASX,” the company said, noting that the review was aimed at “maximisingvalue for all Strike shareholders”.

“Thestrategic review will investigate a range of ownership and funding alternativesat both a project and corporate level,” it said. The review may not “lead toany particular outcome or transaction”.

Mr Nichollssaid it was “the right time” to quit “and pass onto a new CEO the refreshedentity to guide the company through the next stage of development and growth,which should see further significant shareholder value creation”.

He will bepaid three months salary and an additional severance payment of $162,000, aswell as his long-term bonuses on a pro rata basis. Ms Hoffman will be paidalmost $800,000 a year in temporary role.

Strikeshares closed down 2.3 per cent at 21¢, giving the group a marketcapitalisation of almost $600 million.

From AFR