Strike Energy signs $30M gas deal
- Strike Energy (ASX:STX) agreed to a key deal with Hancock Energy to develop the West Erregulla gas field.
- Hancock Energy will provide a $30 million loan to support development work, subject to financier consent.
- The venture targets gas production by mid-2029 following a planned final investment decision in FY28.
Strike Energy (ASX:STX) has agreed to use Hancock Energy's proposed $850 million Belisama gas processing plant for its share of gas from the West Erregulla field.
The agreement provides a clear processing route for the jointly owned asset, which is one of the largest undeveloped conventional gas resources in the Perth Basin region.
"I have known Gina Rinehart for many years and look forward to working with her and the Hancock team to advance West Erregulla and bring its gas to market," said Strike Energy Chairman Nev Power.
Under the commercial terms, Hancock will forward a $30 million loan to cover development work, pending approval from Macquarie Bank.
The joint venture partners are targeting a final investment decision in the 2028 financial year ahead of planned production in mid-2029.
Following the announcement, the Strike Energy share price was unchanged at $0.12.
Strike Energy stated that the agreement provides the optimal development pathway for the company and its shareholders.
The broader timeline for the project remains subject to regulatory clarity surrounding the federal government's proposed gas reservation scheme in Western Australia.
