Strike Energy Limited (ASX:STX) released its FY26 Annual Report on 23 September 2026, marking what the company described as a new phase of growth. The South Erregulla 85 MW Peaking Power Project advanced substantially during the year, with commercial operations targeted for Q4 CY26. West Erregulla 2P Reserves increased approximately 20% to 251 PJ following an independently audited review. Post year end, Strike selected Hancock Energy's Belisama Gas Processing Facility as its preferred West Erregulla processing solution — targeting 43.5 TJ/d net processing capacity and establishing a pathway toward a Final Investment Decision. FY26 financial results included sales Revenue of $62.8 million and cash of $46.3 million at 30 June 2026.

FY26 Financial Results

FY26 sales revenue was $62.8 million (FY25: $72.7 million). Net cash inflows from Operating Activities were $6.4 million (FY25: $42.6 million). Underlying EBITDA was $17.6 million (FY25: $41.6 million). Cash and cash equivalents at 30 June 2026 were $46.3 million (30 June 2025: $41.1 million). The lower FY26 result reflected the transition from Walyering production optimisation to advancing the major development projects. Post year end, $30 million of committed Macquarie Bank financing capacity became available, and Strike and Hancock Energy agreed in principle up to $30 million of pre-FID funding support via Loan for West Erregulla development activities through to FID.

South Erregulla Peaking 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. The power project will use gas from the South Erregulla gas field to generate electricity for the Western Australian South West Interconnected System (SWIS), providing peaking capacity as the WA grid transitions toward higher renewable penetration and requires reliable dispatchable generation.

West Erregulla Reserves Growth and FID Pathway

Following an independently audited Reserves and Resources review, net 2P Reserves at West Erregulla increased approximately 20% to 251 PJ. Post year end, Strike selected Hancock Energy's Belisama Gas Processing Facility as the preferred processing solution for West Erregulla, targeting 43.5 TJ/d of processing capacity net to Strike. This selection establishes a clear development pathway toward FID. Hancock Energy also agreed in principle to provide up to $30 million of pre-FID funding support via loan, providing Strike with financial support through the FID preparation phase.

About the Company

Strike Energy Limited is a Western Australian gas and power company with Assets across South Erregulla (peaking power), West Erregulla (major gas development), and Walyering (producing gas and condensate). The company is led by new Managing Director & CEO Shelley Robertson (appointed 1 June 2026) and Chair Nev Power (appointed 1 July 2026).

Risks

The South Erregulla Power Project targets commercial operations in Q4 CY26 — any commissioning delays or grid connection issues would defer the transition to power generation revenue.

West Erregulla FID requires financing beyond the $30 million Hancock Energy pre-FID loan and $30 million Macquarie facility. The total Capital required for the West Erregulla gas development is substantially larger than these commitments.

The Belisama Gas Processing Facility selection is described as 'preferred' — the commercial terms of the processing agreement and its finalization are required to support FID.

FY26 underlying EBITDA of $17.6 million was down sharply from $41.6 million in FY25, and sales revenue fell 14% — reflecting lower Walyering production rather than growth, as the company invests in major development projects.

New Leadership (CEO and Chair) joined in mid-2026 — while bringing extensive experience, leadership transitions introduce an execution risk as new management teams calibrate their approach to the development portfolio.

What to Watch Ahead

Commercial operations commencement at the South Erregulla 85 MW Power Project in Q4 CY26 — this would be the first material power generation revenue event for Strike.

Finalisation of binding processing terms with Hancock Energy for the Belisama Gas Processing Facility — a prerequisite for West Erregulla FID.

West Erregulla FID announcement — this major capital commitment would define the timeline and funding structure for Strike's largest development project.

Walyering production performance in FY27, providing the Cash Flow foundation while major projects advance.

Drawdown and use of the combined $60 million in financing facilities (Macquarie + Hancock) to fund pre-FID West Erregulla activities.