Strike Energy has announced that the Walyering gas field has been sanctioned for development by the EP447 joint venture (JV).
The full field development cost of the 33 TJ/d and 1400 bbl storage and offloading upstream facility is budgeted at $14.4 million including contingency and is based on final quotes and vendor estimates to complete the existing wells, construct the upstream infrastructure and tie the field into the Parmelia Gas Pipeline.
Strike has identified local sources for many of the various components in order to navigate the current supply chain conditions and ensure timeliness of the construction.
Furthermore, Strike will construct the facility on the existing W6 well site in order to reduce civils costs and additional land access.
Strike has successfully navigated the Walyering gas field through its primary environmental review process and has prepared all documents for submission required to secure its secondary approvals, such as Production License, Safety Case and Environment Management Plan.
The remaining approvals are on the critical path for the first production and Strike currently estimates that commissioning gas is anticipated to enter the upstream facility by the end of 2022 with first gas sales targeted in the first quarter of 2023.
Additionally, Strike will provide interim updates on the progress of the construction and commissioning of the Walyering gas field throughout 2022.
Strike has secured a further $10 million from Macquarie Bank Limited to debut fund its $7.9 million of post-FID Walyering development costs through to first production. Strike will apply to Macquarie to roll its total $33 million debt package into a traditional project financing facility for Walyering as the project progresses through its various milestones.
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