Insights

Why the Strike Energy (ASX:STX) share price finished 5% higher

The Strike Energy Ltd (ASX: STX) share price lifted off today following an update on its share purchase plan. Here’s what the company announced.
The post Why the Strike Energy (ASX:STX) share price finished 5% higher appeared first on The Motley Fool Australia. –

A businessman points to and arrow going up on a graph, indicating a share price rise for an ASX company

The Strike Energy Ltd (ASX: STX) share price lifted off today following an update on its recent share purchase plan (SSP).

At market close, the energy producer’s shares finished the day up 5.7% to 37 cents.

Details of Strike’s SSP

Investors were busy snapping up Strike Energy shares today following a heavily subscribed SPP from the company.

According to its release, Strike Energy advised it has collected over 1,500 applications, equating to around $30 million. The offer was open to eligible investors who held shares in the company before 14 April 2021.

As a result of the significant interest received, the board has determined to double the original SSP offer amount to $10 million. This will leave the company to scale back applications from shareholders to around one-third of the amount applied for.

Strike Energy stated that the funds will be used to supplement a number of activities. These are as follows:

  • Project financing and delivery of ‘First Gas’ from Phase 1 of Greater Erregulla Project at West Erregulla;
  • Proving up South Erregulla gas resources;
  • Appraisal of the Perth Basin wet-gas Jurassic play at Walyering;
  • Fertiliser development at Project Haber
  • Subsurface geotechnical work, engineering and preparation for the Mid-West Geothermal pilot;
  • Critical 2D & 3D seismic campaigns to delineate the next wave of gas and geothermal resource addition.

The company further noted that because of the over-subscribed offer, members of the board have sacrificed their applications.

Strike will issue up to a total of 33.3 million ordinary shares, ranking equally with its existing holdings. The newly created shares will be allotted this coming Monday, and available for trading the day after.

Strike Energy share price summary

Over the past 12 months, the Strike share price has accelerated to post a gain of around 140%. Year-to-date performance stands just shy of 40%, reflecting positive investor sentiment.

Strike Energy has a market capitalisation of a tad over $201 million, with more than 1.1 billion shares on its registry.

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 February 15th 2021

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. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Strike Energy (ASX:STX) share price finished 5% higher appeared first on The 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!