Key highlights

  • Strike reported FY26 sales Revenue of $62.8 million, compared with $72.7 million, and underlying EBITDA of $17.6 million, compared with $41.6 million.
  • Net 2P reserves at West Erregulla rose about 20% to 251 PJ, and Hancock Energy’s Belisama Facility was selected for gas processing.
  • The 85 MW South Erregulla power project is targeting commercial operations in Q4 CY26, and $30 million of Macquarie financing capacity became available.

Strike Energy Ltd (ASX:STX) was trading at $0.103 on 21 October 2026, up 2.50% in the session. The S&P/ASX 200 Energy [XEJ] index was at 11,167.20, higher by 0.014% (1.60 points), and the S&P/ASX 200 [XJO] was at 8,806.90, lower by 0.11% (10.00 points), at 2:32 pm GMT+11. Brent Crude gained 0.60% to US$109.48, with persistent Middle East tensions involving Iran, Saudi Arabia and the Houthis in Yemen continuing, and a reported draw in US oil inventories added to the picture of tightening supply. Strike is a Western Australian independent gas explorer and producer developing resources in the Perth Basin and Mid-West region.

What Strike Energy does

Strike Energy Limited is an independent energy explorer and producer based in Western Australia. The company develops gas in the Perth Basin and Mid-West region and describes its primary objective as providing reliable energy to support Western Australia’s transition away from coal. Its position in the onshore Perth Basin spans the Permian gas play in the north and the Jurassic wet-gas play in the south.

Current Assets include the producing Walyering field, which sells gas and condensate, the West Erregulla gas resource, which is being progressed towards a Final Investment Decision (FID), and the South Erregulla Peaking Power Project, which is in commissioning.

FY26 financial results

In a results release dated 23 September 2026, Strike announced that its Annual Report for the year ended 30 June 2026 had been released. Sales revenue was $62.8 million, compared with $72.7 million in FY25, and underlying EBITDA was $17.6 million, compared with $41.6 million. Cash and cash equivalents at 30 June 2026 were $46.3 million, compared with $41.1 million a year earlier.

An appendix to the release reconciles underlying EBITDA to a net loss for the year. Revenue and EBITDA were both lower than in the prior year.

Net cash inflows from Operating Activities were lower than the $42.6 million recorded in FY25, and the release provides the company’s reconciliation of underlying EBITDA in its appendix.

West Erregulla reserves and processing pathway

Following an independently audited review of reserves and resources, net 2P reserves at West Erregulla increased by approximately 20% to 251 PJ. After the year end, Strike selected Hancock Energy’s Belisama Gas Processing Facility as its preferred processing solution, targeting 43.5 TJ per day of processing capacity net to Strike and establishing a pathway towards FID.

South Erregulla power project

Construction and commissioning of the 85 MW South Erregulla Peaking Power Project advanced substantially during FY26. Commercial operations are targeted for Q4 CY26, which would add a new source of revenue alongside the Walyering operations.

Funding and Walyering

After year end, $30 million of committed Macquarie Bank financing capacity became available. Strike and Hancock Energy also agreed in principle up to $30 million of pre-FID funding support via a Loan to support Strike’s share of West Erregulla development activities through to FID, subject to the terms noted in a 31 August 2026 company update. At Walyering, gas and condensate sales continued, and the Walyering West-1 drilling and testing program supported an increase in Walyering 2P reserves after accounting for FY26 production.

The $30 million Macquarie Bank facility is described as committed financing capacity that became available after year end, while the Hancock Energy arrangement is an in-principle agreement for up to $30 million by way of a loan, with terms to be finalised.

Strategic position described in the release

Strike describes itself as holding one of the more strategically significant positions in the onshore Perth Basin. The release states that the company is approaching a period in which Walyering, South Erregulla and, in time, West Erregulla could each contribute revenue and cash flow, and that it plans to return greater focus to exploration across its Perth Basin portfolio. An investor webinar on the FY26 results was scheduled for 29 September 2026.

Sector context

Western Australian gas developers operate in a market shaped by domestic gas Supply policy, processing infrastructure availability and power-market demand. During the session the S&P/ASX 200 Energy index was at 11,167.20 and Brent crude was at US$109.48 per barrel, with Middle East tensions and tighter US inventories in the wider energy narrative. Strike’s releases refer to a transition from coal in Western Australia’s energy supply.

Risks and uncertainties

Revenue, underlying EBITDA and operating Cash Flow were lower than in FY25, and the company reported a net loss. West Erregulla has not yet reached FID, and the pathway depends on processing arrangements, funding, approvals and cost outcomes. The Hancock loan is agreed in principle, subject to final terms. South Erregulla commissioning and the commencement of commercial operations in Q4 CY26 involve schedule and performance risk, and exploration, drilling and gas price outcomes can vary.

Catalysts to watch

Items referenced include commencement of commercial operations at South Erregulla in Q4 CY26, progress towards a West Erregulla FID, finalisation of Hancock pre-FID funding support, Walyering production and appraisal outcomes, and a renewed focus on exploration in the Perth Basin portfolio.

Closing perspective

Strike’s 23 September 2026 release combined higher reserves, new funding capacity and project progress with lower revenue and EBITDA. The next set of reportable events centres on South Erregulla operations and the West Erregulla development path.