The Cooper Basin is home to a wave of companies reporting rapid growth in oil and gas production as fracking unlocks previously inaccessible gas.
The speculative boomer
Slightly more speculative is Strike Energy Limited (ASX: STX), a smaller oil and gas developer with substantial undeveloped resources.
Gas is notoriously expensive to develop, but Strike is utilizing gas sales agreements to lock in buyers and deliver ‘option fees’ – upfront payments to fast track development and reduce the reliance on debt and shareholder capital raisings.
Natural gas is a compelling area for investors with a long-term focus as gas prices rise and production and reserves grow. Many companies are still priced attractively given their potential.
