West Erregulla, Perth Basin. Source: Strike Energy
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  • As Strike Energy (STX) prepares to drill the high-impact South Erregulla-1 well, it says the importance of Project Haber to the national economy has been recognised
  • The significance of Project Haber of establishing a domestic urea production capacity has resulted in the project being granted Lead Agency Status by the WA Government
  • Concurrently, the Australian Federal Government has given Strike a $2 million grant as part of the Supply Chain Resilience Initiative
  • Strike has also begun mobilising equipment to South Erregulla, and the company has secured all approvals necessary to begin drilling at South Erregulla-1
  • STX shares last traded at 18 cents on December 14

As Strike Energy (STX) prepares to drill the high-impact South Erregulla-1 well, the company said the importance of the urea fertiliser production facility Project Haber to the national economy has been recognised at both the state and federal levels.

Strike said the significance of Project Haber in terms of establishing a significant domestic urea production capacity has resulted in the project being granted Lead Agency Status by the WA Government.

Concurrently, the Australian Federal Government has awarded Strike a $2 million grant as part of the Supply Chain Resilience Initiative.

“The award of this Supply Chain Resilience Grant and West Australian Lead Agency Status is recognition of the importance of Strike’s pursuits at Project Haber, to not only domesticate the nitrogen fertiliser industry but also dramatically reduce the carbon footprint of the Australia’s agricultural emissions,” CEO and Managing Director, Stuart Nicholls said.

“The investment in clean hydrogen in the Mid-West demonstrates the role that Project Haber can have in creating a new energy economy through the early creation of a large commercial hydrogen demand centre. Renewable power with some green hydrogen combined with Strike’s adjacent natural gas resources could see some of the world’s lowest carbon urea produced right here in WA.”

South Erregulla

Strike has begun mobilising equipment to its South Erregulla project, and the company has secured all approvals necessary to begin drilling at South Erregulla-1 (SE-1).

STX plans to spud SE-1 in late December with the Ensign 970 rig, which is fresh off the successful Walyering-5 drilling operation.

The primary goal of SE-1 is to identify approximately 350 PJ of high confidence resource in order to secure Project Haber’s gas requirements from Strike’s licences.

Engineering works and enviromental approvals

Strike has continued to advance the Project Haber FEED early activities after the completion of the Pre-FEED investigations earlier this year.

The effort has mostly concentrated on environmental approvals and the consolidation of the FEED design base. Strike has also begun the FEED/EPC tender process, with the intention of awarding the FEED scope following drilling success at South Erregulla-1.

The tender was offered on a combined FEED/EPC basis, with procedures that will allow the FEED to go straight into the EPC phase upon the completion of Project Haber’s final investment decision.

Strike is still working on getting the necessary environmental and planning clearances for Project Haber. Baseline surveys, modelling, and technical studies are approaching completion, and Strike’s consultant Strategen JBS&G has begun developing the essential regulatory permission applications in preparation for submission in 2022.

STX shares last traded at 18 cents on December 14.

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