Strike Energy Secures A$153 Million Refinancing Package for Perth Basin Initiatives

Strike Energy Limited has announced a pivotal agreement with Macquarie Bank Limited to refinance its current debt package, unlocking crucial funding for production upgrades, pre-development, and development endeavors across its valuable Perth Basin asset portfolio. The execution of definitive financing documentation is the final step before the provision of these facilities. The refinancing package comprises three significant components tailored to address various strategic needs: firstly, a $60 million facility aims to efficiently refinance existing drawn debt with $16.3 million while also allocating $43.7 million towards development capital for key projects like Walyering, West Erregulla, and general working capital requirements. Secondly, a $53 million facility is earmarked to bolster the advancement of South Erregulla, strategically aligning with Strike Energy's expansion goals. Lastly, a $40 million facility is dedicated to supporting the development of the West Erregulla Gas Project, underscoring the company's commitment to tapping into the region's energy potential. This comprehensive financing arrangement reflects Strike Energy's proactive approach to optimizing its financial position, fostering growth, and enhancing shareholder value. With the support of Macquarie Bank Limited, Strike Energy is poised to accelerate its strategic initiatives and solidify its position as a leading player in the energy sector.

The facility features a 60-month term with interest capitalized and a 6% coupon plus bank bill swap rate. Principal repayments are deferred until December 31, 2026, followed by quarterly amortization for the remaining loan duration. Drawdown of the facilities is contingent upon standard conditions, including Strike's final investment decision on the South Erregulla and West Erregulla projects and internal approvals from Macquarie. The facilities will be provided subject to customary financial, corporate, and project-related undertakings and covenants typical for such arrangements. Moreover, the existing security package extended to Macquarie for the current facility will remain intact, serving as security for the refinanced package.

Stuart Nicholls, Strike's CEO and Managing Director, expressed satisfaction with the recently secured financing package, highlighting its pivotal role in providing clarity and funding for Strike's Gas Acceleration Strategy. This strategy encompasses a range of high-potential energy assets situated within the Perth Basin. Nicholls underscored the significance of the reduced cost of capital, which mirrors the advanced stage and reduced risk profile of Strike's production and development portfolio. With this financing in place, Strike can confidently pursue its strategic objectives, leveraging the financial clarity to accelerate growth initiatives and optimize operational efficiency. Nicholls emphasized that the funding package reflects a strategic alignment between Strike's objectives and investor confidence in the company's ability to execute its plans effectively. As Strike progresses towards realizing its vision for the Perth Basin assets, the financing arrangement provides a solid foundation for sustained success and value creation.