Why the Strike Energy (ASX:STX) share price is down 10% this morning

It seems the energy company's share price has not lit up on its latest news…

| More on:
a dead match stands out from a row of matches yet to be struck.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Strike Energy Ltd (ASX: STX) share price is falling hard in early trade.

Below, we take a look at the ASX energy share's gas reserve update.

What gas reserve update did Strike announce?

Strike Energy's share price is tumbling despite the company reporting it had delivered its maiden Perth Basin Gas Reserve. This comes just 2 years after Strike launched its initial exploration operation in the area.

The Gas Reserve was certified by subsurface consultancy Netherland, Sewell & Associates, Inc. (NSAI).

According to the release, NSAI certified 300 petajoule (PJ) 2P and up to 372 PJ 3P gross gas Reserves at the West Erregulla gas field in the Kingia Sandstone.

(Note, 2P equates to the total proved and probable reserves, while 3P equates to proved, probable and possible reserves.)

The Strike Energy share price failed to get a boost despite the company reporting that NSAI identified "considerable upside" with an additional 128 PJ of gross 2C Resources and 198 PJ of gross 2U Resources in the West Erregulla gas field.

Commenting on the progress, Strike's CEO, Stuart Nicholls said:

Delivering our maiden Perth Basin reserve is an important step on the journey towards delivering Strike's Mid-West vision of becoming a Net Zero 2030 integrated energy, fertiliser and renewable power producer, predicted to be the first of its kind for Australia.

These initial reserves are the beginning of a value staircase with a clear plan to increase the recoverable resources in the Erregulla complex and come at a time when gas availability is shortening and its value in the energy system is rising.

With an eye on further potential within the company's Perth Basin holdings, Nicholls added, "These NSAI certified resources are bounded by significant upside and potential in Strike's 100% owned acreage, where gas resources have been booked to the very southern edge of the permit boundary, where Strike's acreage continues."

Strike Energy share price snapshot

The Strike Energy share price has been on a bit or a rollercoaster in 2021. With today's moves factored in, Strike's shares are down 15% year-to-date. That compares to a 9% gain posted by the All Ordinaries Index (ASX: XAO) so far this year.

Over the past month, Strike Energy's share price is down more than 13%.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the 'five best ASX stocks' for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now...

See The 5 Stocks *Returns as of 5 December 2024

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Energy Shares

An oil worker in front of a pumpjack using a tablet PC.
Energy Shares

2 no-brainer ASX oil shares to buy with $1,500 right now

Morgans thinks these shares would be great options for investors wanting oil exposure.

Read more »

Business people discussing project on digital tablet.
Energy Shares

Are Woodside shares dirt cheap right now?

Let's see what analysts are saying about this energy giant's shares.

Read more »

A man lays on a tennis court exhausted.
Energy Shares

Why 2025 could be a slippery time for ASX 200 energy shares

2025 could be another difficult year for ASX 200 oil and gas stocks.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Energy Shares

Buy this beaten down ASX 200 uranium stock for a potential 60% return

Bell Potter is tipping this stock to rebound over 60% higher from current levels.

Read more »

A loudspeaker shoots out the words FINED against a blue backgroun
Energy Shares

AGL shares fall amid large Federal Court penalty

It’s a painful day for AGL shareholders.

Read more »

Worker inspecting oil and gas pipeline.
Energy Shares

What's happening with the Woodside share price following a key agreement today?

Woodside is aiming to simplify its global oil and gas portfolio.

Read more »

A man and a woman sit in front of a laptop looking fascinated and captivated.
Energy Shares

2 ASX 200 uranium shares releasing big news today

The ASX uranium miners released news on their international growth plans.

Read more »

hands holding up winner's trophy
Energy Shares

The best ASX 200 uranium stock to buy in 2025

Why is the broker feeling bullish about this mining stock? Let's find out.

Read more »