- Strike Energy (STX) and Talon Energy (TPD) confirm the presence of high quality, low carbon dioxide (CO2) gas at the Walyering gas field in the Perth Basin
- The joint venture partners have officially completed their appraisal of the Walyering-5 well, with results exceeding pre-drill expectations
- Strike evaluated four gas-charged sands in the area which it found to have a combined total thickness of 116 metres and net pay of 51 metres, with an average porosity of 15.4 per cent
- Strike says once it completes some ongoing casing work at the well, it will prepare Walyering-5 for a production test currently slated for the first quarter of 2022
- Shares in Strike Energy are up 16.67 per cent to 17.5 cents each, with Talon shares up 5.56 per cent to just under a cent
Strike Energy (STX) and Talon Energy (TPD) have confirmed the presence of high quality, low carbon dioxide (CO2) gas at the Walyering gas field in the Perth Basin.
The joint venture partners today told shareholders they had officially completed the appraisal of the Walyering-5 well, with results from drilling and logging work exceeding expectations on all fronts.
Strike, which acts as the operator of the well, used mud logs, logging while drilling, and wireline logging work to evaluate four conventional gas-charged sands in the area, interpreted to be the A, B, C1, and C2 sands.
Together, these reservoirs were found to have a combined total thickness of 116 metres and total net pay of 51 metres, with an average porosity of 15.4 per cent.
Strike Managing Director and CEO Stuart Nicholls said results at the Walyering-5 well exceeded pre-drill expectations with both thicker and better-quality gas-charged sands encountered across several reservoirs.
“These results are another example of the excellent geoscience outcomes that the Strike team continue to deliver, and this result bodes well for ongoing success throughout the basin,” Mr Nicholls said.
“The co-location of the Walyering gas field with transmission infrastructure, better than pipeline quality gas and position on free-hold land combines to make the potential for a very fast to market domestic gas development.”
He said Strike and Talon would now work to put together a plan for “fast and low-cost development” before production testing the well and having it independently certified.
With gas samples from the well measured to contain just 0.69 per cent CO2, Talon said in a statement to investors that Walyering should be “one of, if not the cheapest, gas to market projects in the Perth Basin”.
The appraisal campaign for the Walyering-5 well was designed to test the updip potential of the Walyering wet gas discovery, with plans to potentially recommence the development of the field should the appraisal prove successful.
What’s next for Strike and Talon?
Looking ahead, Strike said once it had completed some ongoing casing work at the well, it would prepare Walyering-5 for a production test to feed into an independent joint venture resource statement.
This production test is currently slated for sometime during the first quarter of 2022.
Today’s news comes just a week after Strike and Talon told investors the well had reached its maximum depth of 3435 metres eight days ahead of schedule.
Strike owns 55 per cent of Walyering-5 in its joint venture with Talon, which owns the remaining 45 per cent.
Shares in Strike Energy were up 16.67 per cent to 17.5 cents each at 10:42 am AEDT. Shares in Talon were up 5.56 per cent at the same time to just under a cent.