The Strike Energy Ltd (ASX: STX) share price lifted off today following an update on its recent share purchase plan (SSP).
At market close, the energy producer's shares finished the day up 5.7% to 37 cents.
Details of Strike's SSP
Investors were busy snapping up Strike Energy shares today following a heavily subscribed SPP from the company.
According to its release, Strike Energy advised it has collected over 1,500 applications, equating to around $30 million. The offer was open to eligible investors who held shares in the company before 14 April 2021.
As a result of the significant interest received, the board has determined to double the original SSP offer amount to $10 million. This will leave the company to scale back applications from shareholders to around one-third of the amount applied for.
Strike Energy stated that the funds will be used to supplement a number of activities. These are as follows:
- Project financing and delivery of 'First Gas' from Phase 1 of Greater Erregulla Project at West Erregulla;
- Proving up South Erregulla gas resources;
- Appraisal of the Perth Basin wet-gas Jurassic play at Walyering;
- Fertiliser development at Project Haber
- Subsurface geotechnical work, engineering and preparation for the Mid-West Geothermal pilot;
- Critical 2D & 3D seismic campaigns to delineate the next wave of gas and geothermal resource addition.
The company further noted that because of the over-subscribed offer, members of the board have sacrificed their applications.
Strike will issue up to a total of 33.3 million ordinary shares, ranking equally with its existing holdings. The newly created shares will be allotted this coming Monday, and available for trading the day after.
Strike Energy share price summary
Over the past 12 months, the Strike share price has accelerated to post a gain of around 140%. Year-to-date performance stands just shy of 40%, reflecting positive investor sentiment.
Strike Energy has a market capitalisation of a tad over $201 million, with more than 1.1 billion shares on its registry.
