West Erregulla JV plans next stage appraisal

West Erregulla joint venture partners Strike Energy Ltd. and Warrego Energy Ltd. have planned the next stage of appraisal work at the gas field in the North Perth basin onshore Western Australia.

The approved three-well plan provides for the West Erregulla-4 and possibly West Erregulla-5 wells to be added to the West Erregulla-3 drilling and 3D seismic program.

The seismic will be acquired over a substantial portion of the remaining part of EP469.

The opportunity to drill the wells in close succession will support further understanding of the field and its plans for its future development.

All the wells will be drilled for use as future producers to support the proposed Stage 1 development.

Strike, as operator, anticipates that the appraisal work will enable the JV to take advantage of the current lull in exploration activity in the short-term, while in the longer-term the companies will be positioned to benefit from the expected tightening in the market and likely shortfall in domestic gas supply following delays to major offshore Western Australian LNG projects and their associated domestic supply obligations.

Drilling of West Erregulla-3 is expected during this year’s second half. A decision on drilling West Erregulla-5 will be made before the end of November.

The field development timeline remains on track with a proposed final investment decision during this year’s fourth quarter, Strike said.

Strike and Warrego each have 50% interest in the permit.