STX 8.33% 26.0¢ strike energy limited

"Also hypothetically in January should we receive an...

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    "Also hypothetically in January should we receive an announcement along the lines of "we are pleased to announce we have achieved continuous production and our partners Orica etc are prepared to contribute to our next round of testing". What do you see as the logical next step? Raise capital with the major holders on the back of a rise in the share price, and spend the money on striking a processing deal getting contracts in place to get the gas to market? "

    AC - I think you are likely to see an announcement of sustained gas flow before then (my view only) - but I course could be wrong of course.
    Orica will likely need to see a sustained flow for a period of time to commit their funds under the deal that has been struck. If and when that occurs I do not think strike are going to run out and hit the market up for funds straight off the bat. Management are very well aware of the implications of dilution (particularly as they are becoming larger share-holders themselves of late !). Orica will have a fairly large commitment that will get strike to a fair degree of advancement. There will of course need to be an assessment of the correct timing of a future capital raising as there is no doubt that will need to occur in order to ramp this up to the degree that gives the size of the resource justice. But given they have an orica (plus the other two) ready to supply cash I think they can stave off the CR dilution for some time. There will be a FID at some point which will be the absolute trigger for those that aren't already invested ! When that occurs then perhaps that is when a CR is on the cards IMO (or generally around the same time). the share price could look a whole lot different by then and current investors probably couldn't care less.
    IMO
 
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