Insights

Strike Energy (ASX:STX) share price rises on business update

The Strike Energy (ASX: STX) share price lifted today following news of a new pipeline for the Western Australia gas market.
The post Strike Energy (ASX:STX) share price rises on business update appeared first on Motley Fool Australia. –

gas

The Strike Energy Ltd (ASX: STX) share price was trading higher today following news of a new pipeline for the Western Australia gas market.

At close of trade today, the Strike Energy share price is up 1.92% to 26 cents. In comparison, the All Ordinaries Index (ASX: XAO) is 0.5% higher at 6,888 points.

What’s driving the Strike Energy share price?

The oil and gas explorer provided a business update following APA Group‘s (ASX: APA) pipeline announcement earlier today.

The APA Group advised it plans to invest $460 million to build a 580km gas pipeline. The 12″ pipeline will connect gas fields from the Perth Basin to the Goldfields region, forming an interconnected Western Australia gas grid. The project is due to become operational mid-2022, and will provide additional capacity to the whole network while increasing gas supply options.

Strike said APA’s move to build a new pipeline connection validated how large-scale and low-cost gas resources could benefit the wider state economy.

With Strike’s onshore gas assets located close to the Goldfields region, it can provide supply to the pipeline. This will reduce energy transportation costs for customers purchasing Perth Basin gas. The company estimates that with the new project, Strike’s geographical advantage will increase to 80% of the existing gas market in Western Australia.

Furthermore, the company noted that as gas became more readily available and affordable, it would take over its more expensive counterpart, electricity.

What did the managing director say?

Commenting on the new pipeline, Strike Energy managing director Stuart Nicholls said:

APA’s pipeline announcement is a significant endorsement in the potential of the Perth Basin to be a long term, competitive source of energy for the Goldfields.

Gas is the fuel of choice to replace diesel fired electricity in the Goldfields. It is reliable and affordable, has significantly lower emissions, and facilitates high penetration of complimentary renewable energy.

Strike Energy’s market access continues to grow. We look forward to engaging further in discussions with potential end users of Perth Basin gas.

About the Strike Energy share price 

The Strike Energy share price has lifted more than 26% in the last 6 months, and is closing in on its 52-week high of 29 cents. The company has a market capitalisation $455.9 million, and trades at an average volume of 1.8 million shares daily.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Strike Energy (ASX:STX) share price rises on business update appeared first on Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!