Originally published by Jonathan Jackson of Proactive
31.08.2026
Strike Energy Ltd (ASX:STX, OTC:STKKF, FRA:RJN) shares climbed towards 11.5 cents after the company secured a $30 million funding agreement with Gina Rinehart’s Hancock Energy, providing a pathway towards commercialising the West Erregulla gas field in Western Australia.
The commercial loan will support development of the jointly owned West Erregulla project and aligns the partners around a proposed processing solution for the field’s gas.
Hancock Energy’s proposed Belisama gas processing facility has been selected to process Strike’s share of production from West Erregulla.
The funding remains subject to finalisation of long-form agreements and consent from Strike’s existing financier, Macquarie Bank.
Pathway to first gas
Strike described the agreement as a “major breakthrough” that would allow it to progress its largest development project while preserving financial flexibility and reducing the need for additional near-term capital.
Discovered in 2019, West Erregulla is one of the largest undeveloped conventional gas resources in the onshore Perth Basin.
The West Erregulla Joint Venture is targeting an upstream final investment decision in the 2028 financial year, with first gas expected around the middle of calendar 2029.
Strike is also progressing commissioning of its South Erregulla Power Project, where approval to generate electricity is targeted by December.
Once West Erregulla enters production, Strike expects to be generating cash flow from its three core assets — South Erregulla, West Erregulla and Walyering — which the company believes will materially strengthen its position in Australia’s energy sector.
Strike Energy chair Nev Power said he had known Rinehart for many years and looked forward to working with her and the Hancock team to advance West Erregulla and bring its gas to market.
