The Strike Energy Ltd.-Warrego Energy Ltd. joint venture released new independent estimates of gas reserves in West Erregulla field onshore North Perth basin permit EP469 that support Phase 1 gas development.
Netherland, Sewell & Associates (NSA) estimates gross 2P reserves of 300 petajoules in the main Kingia Sandstone reservoir and has flagged a potential 3P upside of 373 petajoules.
In addition, the consultancy recognized growth potential in the field with a further 128 petajoules of 2C contingent resources and 198 petajoules of 2U prospective resources in the Kingia, High Cliff, and Wagina-Dongara Sandstone reservoirs.
This potential may be evaluated with the retesting of West Erregulla-5 and the re-entry of West Erregulla-3.
The new estimates were based on drilling, coring, log, seismic, and production testing data from the various strata along with exploration and appraisal wells drilled throughout the field.
Strike, as operator, will enter mandates with various banks to commence due diligence prior to finalizing terms of a project financing facility for Phase 1 development in which gas has been sold (provided certain conditions are met) to foundation customers Wesfarmers and Alcoa.
Construction of the upstream and midstream processing infrastructure is expected to begin in second-half 2022 following a final investment decision and receipt of necessary environmental approvals. First gas is scheduled for second-half 2023.
The Australian Gas Infrastructure Group will build and operate the proposed 87 terajoules/day gas plant for Phase 1. The plant will be built within the EP469 permit boundaries and will tie directly into the main Dampier-Bunbury trunk line.
Strike has also noted the potential for deeper gas on at least the western flank of the field. The company estimates this region could potentially add a further 155 petajoules of P50 upside recoverable gas resources that NSA risked out in the deeper Kingia horizon.
A down-dip well would need to be drilled to confirm the additional upside resource.
Strike and Warrego each hold 50% interest in EP 469.