- Well flowed at stabilised rate from the C1 sand, and Strike’s flow testing has confirmed a low-impurity gas accumulation.
- Higher gas condensate ratio compared to Walyering production.
- Reservoir pressure, productivity indicate a potential development opportunity
Strike Energy (ASX:STX) has identified a new gas development opportunity with the successful completion of flow testing operations at the Walyering West-1 exploration well in the onshore the Perth Basin in Western Australia.
Listen to the HotCopper podcast for in-depth discussions and insights on all the biggest headlines from throughout the week. On Spotify, Apple, and more.
MD and CEO, Shelley Robertson, said Strike has successfully demonstrated sustained gas flows from the Cattamarra Formation and confirmed the presence of an additional gas accumulation within the Walyering field area.
“The Walyering West-1 flow test result demonstrates the quality of the reservoir and the potential for this well to provide additional gas supply to support Walyering production and future contract commitments,” Ms Robertson said.
“Importantly, the well is located close to existing infrastructure, providing an opportunity to efficiently commercialise any additional reserves identified through ongoing evaluation. We look forward to updating shareholders as the evaluation process is completed.”
The flow testing program was conducted over 12 days and included individual testing of the A sub1, C1, D1 and D2-4 sands. During the program, the well achieved a stabilised flow rate from the C1 Sand of 11 MMscf/d through a 36/64″ choke with a flowing wellhead pressure of 1,575 psi.
The gas streams recovered during testing are consistent with those produced from the existing Walyering field, exhibiting low impurity levels and associated condensate production.
The well is located ~3km from the Walyering Gas Facility and was specifically drilled to evaluate the potential for low-cost incremental gas supply from a structure situated immediately adjacent to existing infrastructure.
The Walyering gas field sits in production licence L23, 150km north of Perth.
In CY22, Strike sanctioned the Walyering Gas Project, just nine months from its announced discovery, demonstrating the development speed of the low-cost Jurassic wet-gas play.
The Walyering gas is being delivered into two firm gas supply agreements with Santos WA Energy Limited to supply a total of 36.5 PJ of gas on a firm basis for a period of five years and with Alinta Energy WA for the supply of a total of 3.4 PJ of gas on a firm basis for a period of two years.
STX ended up +2.38%, at 10.8cps yesterday. Mkt cap $377.9M.
Join the discussion: See what HotCopper users are saying about Strike Energy Ltd and be part of the conversations that move the markets.
The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.