Strike Energy has executed a farmout of a 45 per cent interest in the Walyering gas project in Western Australia to Talon Petroleum.
Under the terms of the agreement, Talon will acquire a 45 per cent interest in EP447 in the Perth Basin, which contains the Walyering wet gas prospect, as well as a rights over EP495, which contains the analogous Ocean Hill gas discovery.
Strike and Talon are expected to form an unincorporated joint venture in EP447 following ministerial approval of the transaction.
Talon managing director David Casey said with Strike’s West Erregulla drilling campaign kicking off soon, there would be a keen focus on the Perth Basin.
“Strike’s track record and expertise in the basin was a critical factor in our decision to farm into Walyering,” Casey said.
“The newly acquired Walyering 3D seismic dataset was the first acquired over this prolific Jurassic wet play and provides enhanced confidence in the prospect. An added benefit was the certainty around drilling with the Walyering appraisal well to be drilled following Strike’s West Erregulla campaign.”
Strike managing director and chief executive officer Stuart Nicholls said the company is pleased to close the transaction and welcomes Talon as its joint venture partner at Waylering.
“This transaction will support the acceleration of appraisal drilling at Walyering which, if successful, could be a fast to market additional source of production from Strike’s substantial acreage position in the Perth Basin,” Nicholls said.
The Walyering conventional gas discovery was made in the Cattamarra coal measures, a play that has been proven to support commercial production form the gas projects at Gin-Gin and Red Gully.
The permit covers 1110km2 and was acquired in 2018, with Strike carrying out over 90km2 of 3D seismic at Walyering in late 2019, and improving its confidence in the project.
In addition, Strike has completed the well design and identification of a proposed well location in preparation for the upcoming appraisal drilling in 2021.