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Strike Energy (ASX:STX) expands holdings in Perth Basin

Energy
ASX:STX      MCAP $629.6M
15 March 2021 10:10 (AEST)

Strike Energy (STX) has been successful in its bid for the last remaining unheld acreage in the Permian Gas Fairway, north of Perth.

The block, L20-3, was granted in the WA 2020 Petroleum Acreage Release 1 and adds to the oil and gas explorer’s holdings in the Perth Basin.

The Perth Basin Permian Gas Fairway has, to date, yielded more than three trillion cubic feet of discoveries, including Strike Energy’s West Erregulla gas field.

“The award of this exciting acreage is acknowledgement of Strike’s developing position in Western Australia as a future domestic energy and fertiliser supplier,” said Managing Director and CEO Stuart Nicholls.

“The addition of this block almost completes the connection of Strike’s acreage, making a contiguous landholding from North to South. This position in the Basin is adjacent to the North/South extensional faults which provide the primary route for hydrocarbon migration across the basins various plays.”

“Strike looks forward to progressing further interpretation and reprocessing of data over Eneabba Deep in the immediate future, which will support an initial estimation of a potential resource size,” he added.

The new acreage is surrounded by gas discoveries: the Permian Beharra Springs couples, the West Erregulla field, the Permian Woodada field and the Ocean Hill Jurassic wet gas discovery.

Block L20-3 is also adjacent to infrastructure, notably the Parmelia Pipeline and the Dampier to Bunbury Natural Gas Pipeline, and is already subject to the Yamatji Nation Land Use agreement, meaning Strike will not need to secure a Native Title agreement.

Strike shares are in the grey at 30.5 cents at 10:25 am AEDT.

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