Strike Energy (ASX: STX) has been granted a trading halt by the ASX pending the release of a proposed capital raising, with the company's shares placed in pre-open.
Strike has not yet indicated where the potential capital injection will be allocated, but the company has some very interesting news on the short term radar.
The company is currently preparing to participate in its first well to evaluate the gas and liquids potential of the coals and shales in the Southern Cooper Basin gas and liquids unconventional fairway.
The Marsden-1 well, operated by Beach Energy(ASX:BPT), is located in PEL 95 in the Battunga Trough and the Ensign Rig 918 is expected to spud it on 22 February.
Marsden-1 will be drilled to a total depth of 2640 metres to intersect 700 to 800 metres of Permian sediments including the Toolachee, the Roseneath, Epsilon and Murteree formations and the Patchawarra.
Strike said it was confident the liquids potential of the region, along with the lower cost of drilling and ready access to infrastructure, would result in a clear commercialisation path.
The halt will last until the earlier of the details being made available to the market, or the opening of trade on Wednesday 28 March.