- Strike Energy (STX) updates market on multi-well Perth Basin program, designed to target 1800 petajoules equivalent in the second half of 2021
- Preparations are underway to spud the South Erregulla-1 well in October
- Additionally, STX has entered a MOU with a Goldfields downstream developer for the supply of 15-20 terajoules gas per day for five years starting in 2024
- The Walyering-5 well is planned for spud in September, and the company has mapped a future prospect at the recently granted EP506
- At market open, shares are trading grey at 34 cents
Strike Energy (STX) has provided an update on its multi-well Perth Basin program, which has been designed to target 1800 petajoules equivalent in the second half of 2021.
The company is gearing up to spud the South Erregulla-1 well in October.
Further, Strike said it has submitted and received approval for several of the permits required to start drilling operations and has procured the long-lead items, since receiving the $20,000 government grant to support the drilling campaign at South Erregulla-1.
If successful, STX plans to both reserve dedicated resources for its Project Haber fertiliser feedstock, as well as market and sell gas from the field into Western Australia’s growing domestic gas market.
With the construction of APA Group’s new Midwest gas pipeline infrastructure, the Northern Goldfields Interconnect (NGI), STX believes new opportunities for domestic gas market sales to the Northern Goldfields region will open up.
On this, the company has entered a memorandum of understanding (MOU) with a
Goldfields downstream project developer for a gas supply agreement, with the gas supplying a greenfield mineral processing and production facility, to be transported via APA’s NGI.
The MOU includes key terms of 15-20 terajoules per day for five years starting in 2024, with a binding term sheet expected before the end of 2021.
Strike is also eager to acquire the “Maior 2D seismic survey” this month which it said will assist work by not needing to wait for “postharvest” seasons before being able to secure additional subsurface information that can support new well locations.
In other news, since being granted exploration permit EP506 by the WA Department of Mines, Industry Regulation and Safety, STX has mapped a future prospect named “Eneabba Deep” which it said has significant potential for stacked, Permian-aged reservoirs hosted in structural closure.
In particular, mapping is said to indicate the prospective fairway for thickened Permian reservoir sands could extend as far South on the permit as the Cadda terrace.
At the Walyering-5 well within the project area, the company expects to spud in September under free carry from Talon Energy.
Strike said Walyering is an “excellent test-case” for the geotechnical work it has carried out across the Jurassic wet gas play in the Cattamarra sequence.
If the appraisal drilling indicates a commercial development, Strike expects this will be a catalyst for a material uplift in valuation of its acreage position across the play.
Managing Director & CEO Stuart Nicholls said the next phase of work across the Perth Basin gas resource is “exciting and potentially transformational”.
“Extending the Permian Gas Fairway down to South Erregulla and re-injecting new value into the Jurassic wet gas play in the South will, on success, have cascading effects across the value of all of Strike’s adjoining acreage in the Basin.
“At the conclusion of this program, Strike aims to be in a position to support the development of its fertiliser project at Project Haber, which is a key pillar of its Net Zero 2030 target, and to take advantage of the tightening WA domestic gas market conditions expected in the mid part of the decade.”
At market open, shares were grey at 34 cents.