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Strike raises funds for Cooper probe

Operator hopes exploration well will support a final investment decision on South Australian gas project

Australian junior Strike Energy has raised A$9.1 million (US$7.3 million) to fund the drilling of exploration well at its Southern Cooper Basin gas project in South Australia.

Strike revealed Thursday it had completed a “heavily oversubscribed” share placement to raise the funds for the Jaw-1 well in PEL 96.

It will see the company issue 130 million fully paid ordinary shares at A$0.07 per share.

“This capital raising provides the requisite funds for Strike to execute the Jaws-1 well which is expected to be the catalyst for the commercial definition of the deep coal seam play in the Southern Cooper basin,” Strike managing director Stuart Nicholls said.

“On success, the Jaws-1 well is expected to allow Strike to book a reserve, commit to the drilling of Jaws‐2 and support a final investment decision on the Phase 1 project to support the delivery of gas into the South Australian energy system by the end of 2019.”

The South Cooper Basin gas project covers PELs 94, 95 and 96 and is targeting the gas potential of a series of very thick coals.