Strike Energy Ltd., Adelaide, outlined a 6-month plan for its onshore North Perth basin acreage in Western Australia.
The company (and 50% JV partner Warrego Energy Ltd.) has committed to the procurement, fabrication, and timeline for the 87 terajoules/day gas processing plant long-lead items for its West Erregulla field development in permit EP 469.
Additionally, this month Strike will begin a 2D seismic survey in its South Erregulla permit EP 503 ahead of the spudding of its South Erregulla-1 wildcat in October.
Strike also is preparing to spud the Waylering-5 appraisal well further south in permit EP 447 in September.
At West Erregulla, Strike has made firm commitments with Australian Gas Infrastructure Group (AGIG) to begin procurement of $31.5 million (Aus.) worth of long-lead items for development of the gas plant. While only an initial commitment, the procurement paves the way to begin construction of the AGIG gas plant, which is central to Strike’s Greater Erregulla gas strategy, the company said. A formal investment decision is expected in the near future.
The 2D seismic survey across the South Erregulla permit aims to provide more information about the Permian-age sandstones in the Dandaragan Trough. The trough has the potential to host geothermal resources where Strike owns 100% of overlapping rights across the basin, which support complementary development of subsurface information and potentially commercial outcomes for all well penetrations, especially where good quality conventional Kingia reservoir is encountered.
Strike said the South Erregulla-1 wildcat represents potential near-term multi-tcf upside which has been derisked by the West Erregulla appraisal program. Drilling is expected to take about 45 days.
Prior to that, the rig will drill Waylering-5, which is planned as a test-case for the geotechnical work Strike has carried out across the Jurassic-age wet gas play in the Cattaarra geological sequence. Strike has farmed out a 45% interest in the permit to Talon Petroleum Ltd. and will be carried in the drilling program for up to $6 million (Aus).
If the appraisal proves up a commercial development, Strike expects it to be a catalyst for an increase in the potential of the Cattamarra play where it holds acreage—including the Ocean Hill structure in permit EP495
on trend to the north where a contingent resource has been booked.
If the 6-month program is successful, Strike hopes to be able to support development of its fertilizer project at Project Haber and take advantage of a tightening domestic gas market in Western Australia expected in the mid-2020s.