Strike Energy sells remaining US assets

Company News

by David Chau

Strike Energy (ASX:STX) has made progress with selling its remaining production assets in the US.  It entered an agreement with Rockport Permian LLC to sell its 25%interest in the MB Clearfork Project in Texas. Strike Energy will receive US$175,000 for this sale.

The company has also agreed to sell its 40% stake in its remaining Wilcox formation production unit in Texas (a gas-condensate well) – but has not said for how much.

Both transactions are expected to close in mid-January. After that, Strike Energy will no longer hold any production or exploration assets in the US.

The company expects its current debt to be reduced by US$2.4 million following this transaction.

Strike Energy reported a net profit of $4.3 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.