Oil and gas exploration company Strike Energy (ASX:STX) has finalised terms with Macquarie Bank for a $28 million, two year, secured debt facility to cover appraisal drilling and long lead items for the development of the West Erregulla Phase 1 Project.
$13 million of the funding has been committed, subject to definitive documentation and other conditions. The remaining $15 million is subject to drilling milestones and further lender conditions and approvals.
As part of the establishment cost of the facility, Strike will issue Macquarie with 35 million options to subscribe for Strike ordinary shares at an exercise price of 29 cents.
Strike’s Managing Director & CEO Stuart Nicholls says “the timing of the funding is important as it allows Strike to secure its financing requirements over a period of heightened operational expenditure during a seasonal slowdown in capital markets.”
Shares in Strike Energy (ASX:STX) are trading 1.85 per cent higher at 28 cents.