- Strike Energy (STX) begins work to unlock a second Perth Basin gas play at the Walyering gas discovery
- Strike has begun constructed a well pad and infrastructure to host a drilling rig, which it anticipates will arrive once it has completed the Lockyer Depp-1 well
- Strike says the Walyering-5 well is a key component to restarting development of the Walyering and Ocean Hill wet-gas resources, which stalled under previous ownership
- The costs of drilling the Walyering-5 well will be shared between itself and ASX-listed company, Talon Energy (TPD) under a farm-in agreement
- Strike Energy last traded at 27 cents on August 25
Strike Energy (STX) has begun work to unlock a second Perth Basin gas play at the Walyering gas discovery.
Earth moving equipment has been mobilised to the well location, where Strike has begun construction of a well pad and infrastructure to host an Ensign 970 drilling rig.
The company anticipates the rig will arrive once it has completed the Lockyer Depp-1 well, with the spud of the Walyering-5 well expected in October.
Strike said the Walyering-5 well is a key component to restart development of the Walyering and Ocean Hill wet-gas resources, which stalled under previous ownership, despite initial successful exploration and appraisal outcomes.
Strike owns 1853 square kilometres of petroleum acreage in the central area of the Perth Basin, with fellow ASX-listed Talon Energy (TPD) holding a 45 per cent farm-in interest from Q3 2021.
The company said the cost of drilling the Walyering-5 well will be shared by Talon and Strike of the first $9 million of proposed costs. Any costs above this will be incurred on a pro-rata participating interest basis.
Strike’s Chief Executive Officer and Managing Director, Stuart Nicholls, said the company is eager to take its drilling experience from operating in the north Perth Basin to the Jurassic wet gas play trend in the central part of the basin.
“Success at the Walyering-5 well has the potential for material value uplift across Strike’s large continuous acreage position, where substantial Cattamarra prospectivity exists,” Mr Nicholls said.
“This area includes the Ocean Hill structure and gas discovery where a substantial contingent resource already exists.”
Strike Energy last traded at 27 cents on August 25.