Independent Validation of the Walyering Reserves is Announced by Strike Energy

Source: 7/21/2022, Location: Not categorized

The first independently verified Reserves & Resources report for the Walyering gas field acquired by the EP447 JV, which is operated by Strike Energy Limited (Strike - STX) and in which Talon Energy (TPD) owns a 45 percent ownership interest, is now available.

Strike Energy Limited Managing Director & CEO Stuart Nicholls said:
“The booking of a gross aggregate 102 PJ gas and 1.02 mmbbls of condensate at Walyering is hugely exciting for Strike and its shareholders. The Walyering gas field’s fast to market and low-cost development profile will likely translate these resources into delivering the Company’s maiden cash flows given the project has successfully navigated its primary environmental review process.

“The full field results have exceeded Strike’s mid case pre-drill estimates by 35%, which is a great outcome for the project, particularly at a time of heightened commodity pricing. “As previously highlighted, the Walyering gas field was not captured in the forward supply modelling by the AEMO in their 2021 Gas Statement of Opportunities and, therefore Walyering’s gas supplies will be influential in minimising or even avoiding any forecasted mid-decade WA industrial gas shortage”

Walyering Gas Field Reserves & Resources
The Walyering gas field can move forward into development and construction with the support of RISC Advisory's (RISC) estimated gross 2P gas reserves of 54 PJ (30 PJ net to Strike)1 and 0.55 mmbbls of associated condensate (0.30 mmbbls net to Strike), which also acknowledges the success of the drilling, appraisal, and development programme thus far.

RISC has recognised growth potential in the Walyering gas field with a further gross 2C Contingent Resource of 32 PJ and 0.31 mmbbls of associate condensate (18 PJ and 0.17 mmbbls net to Strike) and 16 PJ of gas and 0.16 mmbbls of condensate of gross 2U Prospective Resources ( 9 PJ and 0.09 mmbbls net to Strike) in undrilled or untested compartments / reservoirs of the Walyering gas field’s Cattamarra Sands.

The RISC Reserves and Resources report is based on the drilling, coring, log, seismic and production testing data from both the Cattamarra Sands and the Cadda Formations exploration and appraisal wells drilled throughout the field.

Walyering Gas Field Development
Strike intends to shortly engage with the EP447 JV to contemplate a final investment decision given the proposed development has successfully passed through its primary environmental review process. The investment decision would consider taking the Walyering gas field into construction and commissioning immediately.

A full field development cost of $14.2m (including contingency) is estimated to complete the existing wells and construct the associated 33 mmscf/d (up to 37 TJ/d) and 1,400 bbls of condensate storage and offloading upstream infrastructure, which would be tied into the Parmelia Gas Pipeline and or the Dampier to Bunbury Natural Gas Pipeline.

Momentum Engineering is currently finalising the detailed design for the upstream plant and pipeline tie in. Gas contracting processes for the ramp up/ commissioning gas and firm supply contracts are expected to complete in Q3/4 CY22 with positive responses from Strike’s tender process received to date.

This announcement is authorised for release by the Managing Director and Chief Executive Officer in accordance with the Company’s Continuous Disclosure Policy.

Gulf Oil and Gas
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