Strike Energy has established a company strategy for its Perth Basin gas assets, saying it aspires to become the lowest cost onshore gas producer in Australia.
The company regards the discovery of the West Erregulla gas fields as a major turning point in its history.
Strike’s strategy is built on the strong foundation provided by West Erregulla, which is a strategic sized resource, is high quality in terms of gas composition pressure and permeabilities, and is close to infrastructure.
The company’s strategy includes the appraisal of West Erregulla, with two wells to be completed as future producers targeted for completion by the end of 2020.
It also plans a phased development of West Erregulla to generate early cashflow, maximise capital efficiency and optimise a larger scale development based on a full understanding of the available resource.
“The market opportunity for West Errugulla is based on the field being able to support long term, low cost gas, supplanting other higher cost sources in the market,” Strike stated.
“Strike also forecasts a growing demand from Western Australia’s resources sector and has identified the opportunity to use more gas in electricity production where other more carbon intensive sources remain as a significant portion of the energy mix.
“The strategic size of the West Errugulla discovery also has the potential to support a generation of new demand in WA through the building of potential chemical, additional LNG and/or manufacturing infrastructure.”
Strike is targeting first production from the project in 2022.