Strike Energy, Talon commences work for Walyering-5 well

Strike Energy has confirmed earth moving and civil equipment is being mobilised to the Walyering-5 well in the Perth Basin, where the company has commenced construction of the well pad and associated infrastructure for the drilling rig.

The company will receive the Ensign 970 drilling rig after completion of the Lockyer Deep-1 well and estimates the spud of the Walyering-5 well will occur in October.

Chief executive officer and managing director Stuart Nicholls said Strike is excited to take our recent subsurface and drilling experience from operating in the north Perth Basin to the adjacent Jurassic wet play trend in the central part of the basin.

“Success at the Walyering-5 well has the potential for material value uplift across Strike’s large continuous acreage position, where substantial Cattamarra prospectivity exists,” he said.

“This area includes the Ocean Hill structure and gas discovery where a substantial contingent resource already exists.”

Joint venture partner Talon Energy, who has a 45 per cent interest in EP447, stated it has rights over two additional, much larger exploration opportunities in the Perth Basin targeting Jurassic Age, conventional reservoirs that will be significantly upgraded by any success at Walyering-5.

In the first instance, Talon has a right of first refusal to negotiate an interest in the adjacent, Strike operated, exploration licence, EP495, which contains the Ocean Hill Jurassic gas discovery, and a 360 BCF 2C contingent resource.

Additionally, in January of this year Talon announced that it had executed an agreement to acquire 100 per cent of the rights to two licence areas over the Condor Structure, by way of a staged acquisition.

Condor currently maps as a high relief structure with potential to host up to 10 times the prospective resources estimated for Walyering.

Talon managing director David Casey said this was another step forward for Talon as it looks to unlock the potential of its Perth Basin portfolio.

“Success at Walyering will not only be transformational for Talon, as the prospectivity of EP447 is significantly enhanced, but it will focus attention on, and result in, a material upgrade to the resource potential of Talon’s Condor prospect,” he said.

Located in the onshore Perth Basin within the EP447 permit area, Walyering is a conventional gas discovery made in the Cattamarra Coal Measures, a play which has seen commercial gas production from the GinGin and Red Gully projects.

Walyering-1 encountered good quality reservoir which flowed at a very commercial 13.5 MMscfd. Talon is earning a 45 per cent participating interest in EP447.

Recently acquired, high-quality 3D seismic over Walyering has led to an increased understanding and confidence in the Jurassic wet gas play and has indicated the presence of wet gas potential up dip of the existing Walyering-4 well.