Strike Energy (ASX:STX) delivers maiden Perth Basin gas reserve

• Strike Energy (STX) delivers its maiden Perth Basin gas reserve in Western Australia, just two years after its first exploration operations started
• Subsurface consultancy, Netherland, Sewell & Associates Inc (NSAI) has given certification to progress the West Erregulla Gas Project into its first phase of development, estimating a gross gas reserve of 300 petajoules
• Strike says it will now push development forward and enter mandates with various banks to begin due diligence, prior to finalising the terms of the Project Financing facility for the Phase 1 development
• The company says construction processing facilities are expected to begin in the second half of 2022, pending approvals, with first gas expected in 2H 2023
• Strike Energy is trading 10.7 per cent down at 25 cents at 10:50 am AEDT

Strike Energy (STX) has delivered its maiden Perth Basin gas reserve in Western Australia. The announcement comes just two years after its first exploration operations in the Basin. “Delivering our maiden Perth Basin reserve is an important step on the journey towards delivering Strike’s Mid-West vision of becoming a Net Zero 2030 integrated energy, fertiliser and renewable power producer, predicted to be the first of its kind for Australia,” Chief Executive Officer and Managing Director Stuart Nicholls said. “These initial reserves are the beginning of a value staircase with a clear plan to increase the recoverable resources in the Erregulla complex and come at a time when gas availability is shortening and its value in the energy system is rising.” Subsurface consultancy, Netherland, Sewell & Associates, Inc (NSAI) has estimated a gross gas reserve of 300 petajoules at the West Erregulla gas field in the Kingia Sandstone, which is said to support the progression of the West Erregulla Phase 1 gas project. It also recognises the resource conversion success of the drilling, appraisal and development program so far. Strike said NSAI’s certification gave support to progress the West Erregulla Gas Project into its first phase of development. “These NSAI certified resources are bounded by significant upside and potential in Strike’s 100 per cent owned acreage, where gas resources have been booked to the very southern edge of the permit boundary, where Strike’s acreage continues,” Mr Nicholls said. Strike said it would now push development forward and enter mandates with various banks in order to begin due diligence, prior to finalising the terms of the Project Financing facility for the Phase 1 development. The company said construction of upstream and midstream processing facilities were expected to begin in the second half of 2022 following necessary approvals under the Environmental Protection Act 1986. First gas is expected in the second half of 2023. Strike Energy is trading 10.7 per cent down at 25 cents at 10:50 am AEDT.