- Strike Energy (STX) enters rig sharing agreement with Mineral Resources (MIN) and JV partner for use of the Ensign 970 rig for its 2023-2024 drilling campaign
- Since August 2020, Strike has successfully drilled six wells using the Ensign 970 rig
- The company’s 2023-24 drilling campaign will be split into two separate programs
- Strike’s CEO and MD Stuart Nicholls said it is an exciting year ahead for the company
- Strike shares are down 1.28 per cent, trading at 38.5 cents at 12:26 pm AEDT
Strike Energy (STX) has entered a rig sharing agreement with Mineral Resources (MIN) and its joint venture (JV) partner Norwest Energy (NWE), for the use of the Ensign 970 rig for its 2023-2024 drilling campaign.
Since August 2020, the company has successfully drilled six wells using the Ensign 970 rig.
The latest drilling slots were secured through Mineral Resources’ subsidiary, Energy Resources, as operator of the Lockyer Deep JV.
The 2023-24 drilling campaign will be split into two separate programs.
Strike’s first program is the South Erregulla appraisal campaign. The company aims for two updip appraisal wells to start in the middle of 2023 at Strike’s 100-per-cent-owned South Erregulla gas field in EP503. This program will aim to convert the current independently certified 178 petajoules of 2C contingent resources in the Kingia Sandstone to 2P reserves.
Strike secured firm drilling slots for the two South Erregulla appraisal wells.
The company’s drilling efforts are funded by the $40 million committed Macquarie Bank Facility, announced on December 19 of last year.
The West Erregulla exploration and Ocean Hill appraisal campaign is the second one, a near field exploration campaign set to begin in early 2024 within EP469. It includes Southwest Erregulla and Erregulla Deep.
Strike’s CEO and Managing Director, Stuart Nicholls, said there is “a lot to look forward to in the Strike portfolio throughout the next 12 months”.
“Strike is preparing to embark on a potentially high impact multi-year appraisal and exploration drilling campaign,” he said.
“The ability to drill this number of potentially high-impact wells in a relatively short period of time is a result of the historical hard work, capital deployed, and risk taken throughout the early exploration and appraisal campaigns from 2019 to 2022 throughout the Erregulla region.”
Southwest Erregulla and Erregulla Deep lie within EP469, where Strike is operator and holder of a 50 per cent direct interest and holder of around 20 per cent of the issued shares in Warrego Energy (WGO), who is the owner of the remaining non-operated interest.
Strike shares were down 1.28 per cent, trading at 38.5 cents at 12:26 pm AEDT.