Many ASX listed companies, having good business model offer fair opportunities to become high growth stocks. Priced low, such stocks, at an early stage of their growth journey are potential growth companies. Two such ASX stocks are
Strike Energy Limited (ASX: STX)
Strike Energy delivered an impressive quarter, marked by increased production volumes, successful exploration, and key regulatory milestones. Gas and condensate sales volumes rose 2% quarter-on-quarter (q-o-q) to 2.4 PJe, generating revenues of ~$18.3 million. Walyering contributed significantly, with flow testing at Walyering-7 confirming a robust discovery, recording maximum rates of 14 TJ/d of gas and 900 bbls/d of condensate. In exploration, the Erregulla Deep-1 (ED-1) well delivered exceptional results, flowing 53 mmscfd of low impurity gas from the Kingia formation during testing. Stabilised flow pressures of 5,515 psi (on a 46/64” choke) represent one of the highest on record in the Perth Basin. The ED-1 discovery exceeded expectations for reservoir quality, pressures, and CO2 content, unlocking significant exploration potential in Strike’s 100%-owned acreage to the east. This underscores ED-1’s status as one of the most significant wells drilled in the Perth Basin to date.
Strike, one of the best growth stocks to buy now, continues to strengthen its project pipeline. The company was awarded 85 MW of Certified Reserve Capacity Credits and Network Access Quantity approval from AEMO for its proposed South Erregulla peaking gas power station. With the 2026/27 capacity price set at $216,092 per MW per annum—at the high end of Strike’s forecast—this project remains commercially attractive. Regulatory momentum also continues, with the award of production licence L25 for the West Erregulla JV and a positive policy update allowing Strike to export 20% of its Perth Basin gas production until 2030. Despite these successes, total revenues of $16.2 Million down 8% and condensate pricing (~$121/bbl, down 13%), driven by FX effects and USD-denominated pricing. However, production growth and strategic advancements mitigate short-term headwinds.
Looking ahead, Strike is progressing facility documentation for a $153 million financing package with Macquarie Bank to fund its Perth Basin Gas Acceleration Strategy. Final investment decisions for the West Erregulla gas field and South Erregulla power project remain on track for the coming quarter. Strike’s quarter highlights its ability to deliver strong operational outcomes while advancing high-impact projects, positioning the company for substantial long-term growth.
Vysarn Limited (ASX: VYS)
Vysarn Limited (ASX: VYS) had a strong financial year in FY24, driven by growth across its subsidiaries in water and environmental services, hydrogeological drilling, test pumping, and managed aquifer recharge. The company saw a 106% increase in net profit after tax, reaching $7.96 million, and its revenue from operations grew to $75.89 million, up by $10.93 million from the previous year. The growth was largely attributed to the company’s expanding diversification strategy, with earnings from subsidiaries other than hydrogeological drilling contributing the majority of this increase. Vysarn also strengthened its balance sheet, securing significant funding through institutional and sophisticated investors, raising $38.2 million to support future growth and acquisitions.
A key development during the year was the launch of Vysarn Asset Management (VAM), which aims to leverage the company’s intellectual property to develop sustainable groundwater resources, particularly in the Pilbara region. This initiative led to the signing of a Joint Resource Agreement (JRA) with the Kariyarra Aboriginal Corporation and progress on a 5C license application. The company also made strategic acquisitions, entering into agreements to purchase Waste Water Services Pty Ltd (WWS) and CMP Consulting Group Pty Ltd (CMP), which will expand its national presence, particularly in the East Coast water infrastructure market. Vysarn’s long-term strategy involves diversifying its business beyond its core operations in Western Australia’s mining sector, targeting broader opportunities across water services, commodities, and geographies.
Vysarn, is among ASX growth stocks focused on becoming Australia’s leading water services provider, with a vertically integrated approach across the full water services value chain. The company’s subsidiaries continue to service various sectors, including resources, urban development, and utilities. It plans to build on its core business in hydrogeological drilling, test pumping, and managed aquifer recharge, while also pursuing growth in water consultancy and infrastructure through its expanding capabilities in water management and sustainable resource projects. Looking ahead, Vysarn’s remains committed to executing its strategy of long-term, sustainable growth, creating value for shareholders, and positioning the company for continued success in both domestic and international markets.
Source: Company’s Report
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