Strike Energy boss Stuart Nicholls has warned mining billionaires Gina Rinehart and Chris Ellison to think twice if they are counting on cheap gas from the West Erregulla project to power their operations.

Mr Nicholls suggested that if Strike is ultimately unsuccessful in its takeover tilt at Warrego, it will use its hefty stake to make sure Mrs Rinehart’s Hancock Energy and Mr Ellison’s Mineral Resources pay full market price for gas.