Oil and Gas News

Strike achieves ‘strategic milestones’

Strike achieves milestones at Walyering-5

Strike Energy has finished the quarter with a number of its milestones already achieved. These milestones pertain to a number of the company’s projects, including Project Haber and the drilling at both Walyering and South Erregulla.

Walyering-5

Production testing of Walyering-5 has exceeded Strike’s initial estimates, with all reservoirs testing strongly and indicating good hydrocarbon saturation. The gas streams produced from both the D and C sands had a condensate gas ratio of around 4-6 bbls/mmscf and few impurities. Light oil was also produced, with an API of 34-45.

According to Strike, the testing phase was an important step toward bringing the field back into production.

“The early results at the Walyering flow test continue to demonstrate the value and scale of Strike’s vast per Basin position in the hands of its exceptional geoscientists,” Stuart Nicholls, Strike’s managing director and CEO, said.

“The company now looks forward to accelerating its maiden cashflows as it works through the Walyering gas fields development milestones over the remainder of the year.”

South Erregulla-1

Following the drilling of the South Erregulla-1 well,  two conventional gas discoveries were made in the Permian strata of the Kingia and Wagina sandstones.

In the Kingia sandstone, high-quality gas saturations are present up dip of the West Erregulla gas field. Logging, whole coring and petrophysical evaluation have confirmed porosites of up to 20.2 per cent and a blocky net pay of 14 metres in a gross 52-metre gas column.

The secondary gas discovery in the Wagina sandstone was made up of two net pay zones: a 16-metre section of high-quality flow units with average porosites of nine per cent, and a 61-metre, lower permeability gasifier section with an average porosity of six per cent.

Together, these gas discovers have provided strike with the necessary confidence to execute the engineering offtake and environmental approval workstreams of Project Haber.

Project Haber

Project Haber, which will see a 1.4mtpa urea fertiliser production facility built  near Geraldton, WA, is expected to advance Australia’s downstream manufacturing industry, and support low carbon technologies and renewable hydrogen.

Thus, it has been awarded Major Project Status by the Australian Federal Government. This will streamline approvals processes and support the profile of the project during its financing.

Environmental assessments are continuing to progress, with the project team issuing the FEED Basis of Design. This represents an important step toward the FEED/EPC contract, for which discussions are still underway.

“In pursuit of Strike’s vertically integrated downstream strategy, the coming quarter will see the foundations laid for the ramp up at project Haber, where Strike has the opportunity to not only re-domesticate fertiliser manufacturing in Australia and lower the Country’s hard to abate agricultural emissions, but also deliver transformational industrial value to Strike’s capital base and shareholders,” Nicholls said.

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