Since its incorporation in 1997, Strike has assembled an expansive exploration portfolio focusing on the near shore Carnarvon Basin and onshore in the Cooper/Eromanga Basin, and has posted some impressive exploration successes.
Company chairman Jeff Schneider, said the IPO marked the emergence of Strike as an important player in the oil and gas exploration market, with the track record and technical expertise to capitalise on emerging opportunities in the sector.
“Strike is exceptionally well placed to benefit from the changing dynamics of the oil market, where current oil prices are expected to remain strong. Many of the majors are now focusing on growing their offshore deepwater portfolios and expanding reserves. This leaves a substantial amount of attractive acreage for us, and for our technology.”
“Few small independent explorers have a sustained track record of successful exploration and such a strong position in two of Australia’s most prolific oil and gas basins. We are therefore well placed to take advantage of our acreage positions and technical expertise to identify prospective targets and deliver results as we have done in the past,” Schneider added.
Simon Ashton, managing director of Strike, said the company had streamlined its portfolio to focus on high quality assets in the two basins and to strengthen its balance sheet ahead of the IPO.
This included the sale of the company’s Otway Basin assets, and the placement of Strike’s coal seam gas assets on the east coast of Australia into the recently listed Comet Ridge Limited, in which Strike has retained a 10% interest.
“Our strategy is to remain geographically focused in Australia and to concentrate exploration activity in proven/prolific hydrocarbon basins as well as exploring in acreage where costs of exploration are low.
In 1999 Strike acquired prospective acreage in the Otway Basin. The subsequent application of new seismic technology to the area, which had previously been appraised and discarded by larger companies, led to the discovery of the significant Casino Gas Field. The field was sold to AWE and Mitsui for $23.5 million.
The IPO includes a Priority Offer of 18 million shares to shareholders in Perilya Limited which currently holds 35% of the equity in Strike.
The first of the offshore Carnarvon Basin wells is expected to commence drilling shortly afterwards in September 2004.
