Strike Energy (ASX: $STX) awarded Certified Reserve Capacity

Strike Energy Limited (Strike - ASX: STX) has been awarded 85 MW of Certified Reserve Capacity (CRC) by the Australian Energy Market Operator (AEMO) in the South West Interconnected System (in Western Australia) for its proposed fully integrated 85 MW peaking gas power station, as part of the development of the South Erregulla gas field in Production License L24 within the Perth Basin (100% net to STX). This CRC award is a significant milestone for Strike's peaking gas power station project as it prepares for the taking of a Final Investment Decision in November 2024 following the receipt of the applied for minimum Network Access Quantity (NAQ) in October 2024.

Executive Commentary on Certified Reserve Capacity Award

Being awarded the 85 MW of capacity for the 2026 cycle paves the way for South Erregulla's path to market. The project capitalizes on the incremental value that integrated gas to power projects can generate from the spark-spread during peak power prices and WA's capacity credit mechanism. Upon receiving confirmation of our minimum network access quantity, we look forward to taking a Final Investment Decision. Strike's proposal to integrate the South Erregulla gas field into a dedicated peaking gas power station to firm local renewable power generation, is a clear demonstration of how Strike is using its gas endowment for a positive impact in Western Australia's energy transition.

Summary of Certified Reserve Capacity Award and Outlook

Strike Energy's award of 85 MW of Certified Reserve Capacity (CRC) by AEMO for its proposed South Erregulla peaking gas power station marks a significant de-risking event for the project as it proceeds towards a Final Investment Decision in November 2024. The CRC and associated capacity credits form a valuable part of the economics of the project, with annualized revenues estimated at $15 - 20 million. This award positions Strike Energy to capitalize on the incremental value from integrated gas to power projects and demonstrates its commitment to making a positive impact in Western Australia's energy transition. The company's next steps involve securing the minimum Network Access Quantity (NAQ) in October 2024 and paying the required deposit for the CRC, paving the way for the project's progression and potential contribution to the local renewable power generation.