West Erregulla Reserves Upgrade by 41 per cent

Source: www.gulfoilandgas.com 7/27/2022, Location: Not categorized

Strike Energy has announced that the West Erregulla (WE) gas field in EP469 in the Perth Basin where Strike has a 54% direct and indirect interest and is operator, has completed its independent Reserves and Resources review post the drilling at WE3.

Independent advisory NSAI have incorporated the excellent petrophysical results of the logs from the successful appraisal drilling at WE3 into their subsurface modelling and resource estimation within the Kingia Sandstone. This review has yielded a substantial 41% increase in the quantity of gross 2P sales gas estimated for the field to 422 PJ (211 PJ direct Strike share) and a gross 2C Contingent Resource of 30 PJ (15 PJ direct Strike share).

The upgrade to the WE Reserves has come from an increase in quality and thickness of the field’s Kingia reservoir properties, conversion of previous Contingent Resources in the North of the field and extension of the field’s boundary to the North-West, which was not previously included in the assessment. This review has also increased the size of the combined 2P Reserves and 2C Contingent Resources of the West Erregulla gas field by 6% to 452 PJ gross.

Strike’s Chief Executive Officer & Managing Director Stuart Nicholls said:

'As described in Q3/21, with more drilling, West Erregulla’s Reserve and Resource base would likely grow. The increase of the Reserves by 41% resultant from the drilling of WE3 is evidence of this fact. Strike’s ~54% direct and indirect ownership of West Erregulla translates into an economic interest in 228 PJ of 2P Reserves and 16 PJ of 2C Resources. Strike’s operated interest at West Erregulla has 96.4 PJ of remaining uncontracted 2P Reserves, which are of significant value during this period of heightened energy pricing.

'Gross Reserve and Contingent Resources of 452 PJ at West Erregulla is indicative of the recoverable gas potential of Strike’s dominant operated position in the Erregulla region where it holds a 54-100% direct and indirect interest throughout its tenure. This considerable low-cost energy endowment will be used in part to support the Company’s move to vertically integrate into fertiliser manufacturing and prepare for its next wave of substantial growth through its Project Haber development.'

Gulf Oil and Gas
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