The full articleAUSTRALIAN FINANCIAL REVIEW Strike while it's...

The full article

AUSTRALIAN FINANCIAL REVIEW Strike while it's hot: fundies take a look at gas hopefulOCTOBER 10, 2019You would have to think Strike Energy expects a positive result given the pressure it has already obtained. And that's when fund managers expect to be asked to tip in."Intimating a capital raise is imminent at this point in time would be incorrect. Nothing has been signed off or agreed by the board," Strike Energy CEO Stuart Nicholls told Street Talk on Thursday. His board is stacked with well known names in business including ex-Fortescue Metals CEO Nev Power, RBA board member John Poynton and colourful Queensland dealmaker Stephen Bizzell."We are waiting for the final results from West Erregulla-2 which we will then assess. At that point, the company will look to its future program and what it wishes to achieve in calendar year 2020."Some of the story is already in Strike Energy's share price. Its shares are up from 6¢ to 26¢ in the past three months.Of course Strike Energy has other funding needs, too. It will need to repay a gas prepay to Orica if (as is likely) its Cooper Basin CSG project is abandoned and may have some rehabilitation liabilities.Strike Energy had $11.4 million in cash and equivalents as at June 30.Interestingly, Strike Energy's partner at West Erregulla-2, the $235 million Warrego Energy, topped up its coffers with a $12 million equity raising last month via RBC Capital Markets and Bridge Street Capital Partners."“The outstanding success of the West Erregulla-2 appraisal well has redefined the potential of the onshore Perth Basin," Warrego Energy boss Dennis Donald told shareholders