Strike Energy Ltd. and Talon Energy Ltd., joint venture developers of Walyering gas field in permit EP447 in the onshore North Perth basin of Western Australia, agreed to supply Walyering gas to Santos Ltd.
Santos will take 36.5 petajoules of gas over a 5-year period beginning in first-half 2023.
The contract covers tranches of firm take-or-pay volumes and ‘as available’ volumes which it says provides flexibility to the joint venture as the field ramps up towards maximum production.
Strike and Talon are constructing a low-cost development at Walyering with gas delivered into the nearby 445-km long Parmelia gas pipeline.
“As Strike commissions the field, the flexibility of this agreement is supportive of Strike managing reservoir performance whilst maximizing early revenues during the ramp-up period,” said Stuart Nicholls, Strike’s managing director and chief executive officer.
Positive final investment decision (FID) to develop Walyering was made in August following completion of an independent certification of 2P gas reserves of 54.2 petajoules by RISC Advisory.
Walyering wet gas field was originally discovered by West Australian Petroleum (WAPET) in 1971. Despite several subsequent appraisal wells, the field was deemed sub-commercial until Strike took over the renewed permit and farmed-out a 45% non-operated interest to Talon in 2020 in exchange for a $6 million (Aus.) carry in a new appraisal well.
The JV drilled a successful appraisal with Walyering-5 in December 2021 and a followed up with a secondary gas find in Walyering-6 in May 2022.
Both wells were successfully flow tested and the results have been used to design the gas processing and condensate storage infrastructure that will be located at the field.
The initial aim is to feed processed Walyering gas from Walyering-5 and -6 wells into the Parmelia pipeline, which lies 1 km from the field and connects other Perth basin fields in the Dongara region to Perth.
Walyering infrastructure is designed to process 33 terajoules/day of gas and separate 150-300 b/d of condensate, which will be diverted to an onsite storage tank designed to hold 1,400 bbl. From there the condensate will be trucked to market.