Strike, Warrego give West Erregulla drilling plan green light

The West Erregulla (EP469) joint venture project in Western Australia has reached a significant milestone with Strike Energy confirming an appraisal plan and multi-year work program and budget.

Operator, Strike (50 per cent) and partner Warrego Energy (50 per cent) have announced they will proceed to finalise major procurement activities, including a drilling rig for the Perth Basin project.

This will allow the company to incorporate the addition of West Erregulla 4 (WE4) and West Erregulla 5 (WE5) to the previously approved West Erregulla 3 (WE3) and captive camping savings.

Strike added that the campaign was scheduled to start during the third quarter of this year.

The company stated that the opportunity to drill the wells in close succession will support further development of the appraisal campaign, with a final investment decision on campaign timing made by November 2020.

Strike reported in its first quarter report that work on the proposed appraisal plan for EP469 continued during the quarter, with plans progressing for the drilling of WE4 and WE5 wells, in addition to the WE3 well in the second half of 2020.

In addition,  the company also finished its tendering process for the provision of third-party processing infrastructure, which will provide a tie-in for raw gas from phase 1 wells and process into sales gas for delivery into the Western Australian transmission network.

Strike has progressed negotiations with relevant parities, with the company estimating that it will be able to commence front-end engineering design (FEED) with a preferred vendor in the coming weeks, before selecting finance partners for phase one.  

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