Key highlights from Strike Energy's Q3 FY24 report

Strike Energy Limited (ASX: $STX) has reported a record quarterly revenue of approximately $18 million, driven by a 21% increase in production from the Walyering gas field. The company's liquidity position stands at around $91 million, comprising approximately $45 million in cash and cash equivalents, and about $47 million in committed, undrawn debt facilities, along with an uncommitted $80 million contingent debt facility for Strike's South Erregulla development. The company also announced its intentions to undertake a minimum holding buy-back for holders of unmarketable parcels of ordinary shares, potentially removing up to a maximum of 2,034,041 ordinary shares from the Company's register at a cost of up to $488,169.84.

Managing Director & CEO, Stuart Nicholls' comments on Q3 FY24 performance

Stuart Nicholls, Managing Director & CEO of Strike Energy, expressed satisfaction with the positive performance from the Walyering gas field, which led to a 21% increase in production and a record quarterly revenue of approximately $18 million. Despite disappointing results from the South Erregulla testing, the company is looking forward to the upcoming high-impact drilling campaign, including the Walyering-7 appraisal and the Erregulla Deep exploration well. Nicholls highlighted the progress of the West Erregulla field development towards a final investment decision targeted for Q3 2024, and the completion of the Ocean Hill 3D seismic acquisition, positioning the company well to benefit from rising WA energy prices.

Outlook and future plans for Strike Energy

Strike Energy's Q3 FY24 report reflects a robust performance driven by the Walyering gas field, with a 21% increase in production and record quarterly revenue. The company's ambitions include progressing towards a final investment decision for the West Erregulla field development, leveraging the completed Ocean Hill 3D seismic acquisition, and preparing for the upcoming high-impact drilling campaign. Despite setbacks in the South Erregulla testing, Strike Energy remains confident in the existence of a smaller Reserve in the Eastern compartment of the field and is reviewing the development concept for a standalone development. The company's strong liquidity position and ongoing initiatives, such as the minimum holding buy-back for shareholders, demonstrate its commitment to optimizing its financial position and capital structure. With a focus on cost reduction and exploration activities, Strike Energy is poised for continued growth and value creation in the energy market.