Combined with what are expected to be commercial discoveries within the High Cliff and Wagina formations, STX believes these resources have the potential to produce some of the lowest-cost gas in Australia.
Strike Energy (ASX: STX, Share Price: $0.115, Market Cap: $96m) is our preferred ‘unconventional’ energy play. Strike’s sole focus is on defining the commercial viability and overall resource extent of its emerging Southern Cooper Basin Project, with the ultimate aim of delivering gas under long-term supply arrangements to growing and energy-starved markets in Eastern and Southern Australia.
Credit Suisse initiates coverage on Strike Energy with an Outperform rating and $0.28 target. The main asset is the recent gas discovery, West Erregulla, in the Perth Basin which may enable up to 250TJ/d for domestic gas development.