Strike Energy: Excellent Gas Flow Test from Erregulla Deep

No-moat Strike Energy, a small Perth Basin hydrocarbon producer, has established new discoveries at Walyering-7 and Erregulla Deep-1. In particular, Erregulla Deep is confirmed as one of the best wells ever drilled in the Perth Basin, with very high deliverability and low impurities. It produced at a stabilized 53 million cubic feet per day, one of the highest rates ever recorded. Strike is progressing toward a final investment decision for West Erregulla, although it is already factored into our group production forecasts and fair value. Regardless, it is encouraging to get some positive news following disappointment from South Erregulla earlier in 2024. We make no change to our AUD 0.30 fair value estimate.