Australia's best 'uncoinventional' energy play

Strike Energy (ASX: STX) is our preferred ‘unconventional’ energy play, with a focus on defining the commercial viability and overall resource extent of its Southern Cooper Basin Project, with the ultimate aim of delivering gas under long-term supply arrangements to markets in Eastern and Southern Australia. Strike has recently advised that that Orica Limited (ASX: ORI) has elected to make the first $7.5 million pre-payment under the terms of the 250PJ Gas Sales Agreement (GSA). Strike has generated steady share price appreciation over the past two years, rising from a low of $0.07 to a recent high of $0.15 - at a time when many other energy plays have fallen by the wayside. It has adopted a methodical approach to acreage selection, exploration and appraisal activity - as well as the securing of significant cornerstone gas customers. Strike has steadily de-risked its Cooper Basin project (PELs 96 & 94), which has reinforced the credibility of its strategy of unlocking gas from coal seams within the Cooper Basin.