Perth-based oil and gas explorer Strike Energy will launch exploration programs at its Australian and US gas and condensate fields, after selling off 50 per cent of its US assets for $US21.7 million ($21.96m).
In an announcement lodged with the ASX today, Strike said aggressive exploration would begin in February at its Steindorf well, a prospect with a target potential of more than 200Bcf of gas.
Strike's US joint venture projects also sold their stakes in the Rayburn and Mesquite projects, located on the onshore US Gulf Coast.
Strike has retained a 30 per cent interest in the Louise gas and condensate field, also located on the Gulf Coast, as well as 30 per cent interest in properties, including Steindorf, secured under its Eaglewood joint venture.
Strike said the Eaglewood joint venture was continuing to provide a pipeline of "excellent" drilling opportunities.
According to an announcement made to the ASX today, Strike will use proceeds from the sale to repay its $US5.8 million debt and close its hedge positions.
Strike's managing director, Simon Ashton said: "the Company is now in a strong financial position and has ongoing cash flow to fund an aggressive drilling program which has the potential to generate substantial returns for investors".
