- Strike Energy (STX) progresses towards converting the acreage at its geothermal power project in WA’s Perth Basin to an exploration permit
- Following a five-month heat needle survey, the company can now apply for a Geothermal Exploration Permit over 1750 square kilometres of the area
- The company plans to use basin modelling and an upcoming inferred resource to choose the best areas to generate the most electrical power
- Concurrently, Strike is engaged with collaborators to progress the overall project concept selection to boost commercialisation
- Shares are trading grey at 27 cents at 9:44am AEST
Strike Energy (STX) is reportedly making progress toward converting the acreage at its geothermal power project in WA’s Perth Basin to an exploration permit.
STX holds 100 per cent ownership of the geothermal rights in the Perth Basin, covering 3500 square kilometres, and is currently evaluating potential targets for a pilot program to test the geothermal potential.
According to STX, Geothermal energy is the cheapest form of reliable and dispatch-able electricity with zero carbon emissions.
At the zero carbon Mid-West geothermal power project, the company has completed a five-month heat needle survey which involved deployment of 12 heat needles to map surface thermal gradients.
Additionally, the company has been awarded the exploration incentive scheme for co-funded energy analysis, and has since begun 3D seismic inversion modelling.
Through this work the company aims to generate subsurface information for the mapping of water-wet and permeable sandstones throughout the Kingia in the North Perth Basin.
STX said processing the seismic volumes into a version that can inform the inverse for gas and water will provide faster and more accurate mapping of the geothermal potential of the Kingia Sandstone.
From there, the data gathered will be integrated into Strike’s basin wide sub-surface model to form the basis of an independent inferred resource and associated power assessment.
The inferred resource assessment is scheduled for completion next quarter and will support the company’s progression of an Indicated Resource in calendar year 22.
The data from the heat needle survey is being assessed, and once returned to the company, will be integrated into its Kingia Sandstone reservoir model.
Moreover, completion of the survey allows Strike to apply for a Geothermal Exploration Permit over half of the 3500-square-kilometre Geothermal Special Prospecting Authority area.
Basin modelling and the inferred resource will be used to determine the best areas required to generate the most electrical power and in turn the preferred GEP area.
Applying for the GEP is poised for quarter four and, upon grant, STX believes it will be in a position to consider future commercial opportunities for potential partners to participate in the proposed testing and development.
The company said it’s excited by the contribution that geothermal power can make to WA’s decarbonisation agenda and zero carbon electricity supply.
It’s also encouraged by the “aspiring” hydrogen economy of the Mid-West, which it said has strong support from the State Government under the Oakajee Strategic Industrial Area project.
Strike is reportedly in discussions with experienced potential collaborators to progress the overall project concept selection, including drilling, surface power generation, technical and project engineering, regulatory approvals, network service providers, and electricity off-takers.
Shares were trading grey at 27 cents at 9:44am AEST.