• Carnarvon Energy to make a strategic investment in Strike of up to A$88 million(1) via a two-tranche equity investment
• Strike will undertake a non-underwritten Share Purchase Plan of up to A$10 million(2)
• Strategic Placement to fund development of Strike’s core assets with South Erregulla on track for first production by 1 October 2026 and Strike targeting West Erregulla upstream FID in 2H 2026

Strike Energy has entered a subscription agreement with Carnarvon Energy, whereby Carnarvon will make a strategic investment of up to A$88 million(1) to acquire up to a 19.9% interest in Strike through a two-tranche placement (Strategic Placement), with tranche 2 being subject to Strike shareholder approval. Subject to shareholder approval, Strike will also undertake a non-underwritten Share Purchase Plan to raise up to A$10 million (SPP) with the ability to accept oversubscriptions for up to an additional A$5 million at the Board’s discretion.

Purpose of the Strategic Placement

The Strategic Placement will provide Strike with the funding and flexibility to execute on the following objectives:

• Delivery of Strike’s strategy: Strike remains focused on executing its strategic direction to deliver reliable and flexible energy solutions that support WA’s energy transition;
• Development of core, cash generating projects: Strategic Placement allows Strike to fund its core projects at West Erregulla, South Erregulla and Walyering, which are expected to generate sustainable operational cashflows;
• Funding certainty: Strategic Placement sufficient to fund Strike’s development plan whilst providing contingency and flexibility to deploy capital to the highest return opportunities within Strike’s portfolio;
• Access to existing financing: Strategic Placement facilitates access to remaining Macquarie facilities(3); and
• Australia’s future energy security: Investment strengthens Strike’s capacity to support Western Australia’s energy transition through successful delivery of its tier-1 portfolio.

Strike Chair, John Poynton, said:
“We welcome Carnarvon as a strategic partner and Strike’s largest shareholder. Strike has a unique asset base with significant potential and Carnarvon’s investment provides the financial capacity and flexibility to realise this potential. Strike remains focused on executing is revised strategy and remains well placed to support Western Australia’s energy transition through the development of its high-quality Perth Basin assets.”

Following the Dorado JV Operator’s recent decision to delay the Dorado development, the Carnarvon Board has been assessing value accretive opportunities for shareholders – this investment marks the conclusion of their Strategic Review and Carnarvon will cease to progress their previously announced potential capital return.

Following the Strategic Placement Carnarvon will maintain a strong balance sheet with at least A$96 million in cash whilst maintaining the ability to fund development of its own portfolio, including the Dorado liquids project and exploration drilling planned for the Bedout Sub-basin.

Placement and SPP

Carnarvon will invest between A$85 million and A$88 million to acquire up to between approximately 712 million to 733 million fully paid ordinary shares in Strike (Shares) in a two-tranche placement, representing up to 19.9% of Strike’s issued fully paid ordinary share capital on a non diluted basis, comprising:

• Tranche 1: to raise approximately A$52 million through the issue of approximately 430 million new Shares under Strike’s available placement capacity; and
• Tranche 2: to raise between approximately A$34 million and A$36 million through the issue of up to between approximately 282 million and 303 million new Shares(4), dependent on Strike shareholder participation in the SPP. Tranche 2 is conditional on shareholder approval to be sought at an extraordinary general meeting, expected to be held in mid-September 2025 (General Meeting).

The Strategic Placement will be conducted at a price of A$0.12 per Share (Issue Price), which represents a 19.7% discount to Strike’s 10-day WVAP of approximately A$0.149 per Share.

(1) Assumes the SPP contemporaneously announced by Strike is fully subscribed for the full $10 million and Carnarvon elects to subscribe for the number of shares required to attain a 19.9% shareholding in Strike after completion of the SPP.
(2) The Board of Strike may accept oversubscriptions for up to an additional A$5 million at the Board’s discretion.
(3) Subject to a positive Final Investment Decision at West Erregulla and achieving the other conditions precedent as set out in the Facility Agreement and as determined by Macquarie credit approvals.
(4) Assumes the SPP contemporaneously announced by Strike is fully subscribed for the full $10 million and Carnarvon elects to subscribe for the number of shares required to attain a 19.9% shareholding in Strike after completion of the SPP. If Strike elects to upsize the SPP by an additional A$5 million, Carnarvon may be issued up to approximately 313 million new Shares in Trance 2 for approximately $38 million.

KeyFacts Energy: Carnarvon Energy Australia country profile   l   Strike Energy Australia country profile