Strike Energy’s West Erregulla gas field has completed its independent reserves and resources review post the drilling at West Erregulla 3 (WE3).
Independent reserves certifier NSAI have incorporated the excellent petrophysical results of the logs from the successful appraisal drilling at WE3 into their subsurface modelling and resource estimation within the Kingia Sandstone. This review has yielded a substantial 41 per cent increase in the quantity of gross 2p sales gas estimated for the field of 422 petajoules (PJ) and a gross 2C contingent resource of 30 PJ.
The upgrade to the West Erregulla reserves after the drilling of WE3 has come from a recognised extension of the field’s boundary to the north-west which was not previously included in the initial NSAI assessment of the field as of 31 August 2021, and an increase in quality of the field’s Kingia reservoir properties.
Strike’s chief executive officer and managing director, Stuart Nicholls, said that the increase of the reserves by 41 per cent is a result of the drilling of WE3.
“Strike’s operated interest at West Erregulla has 96.4 PJ of remaining uncontracted 2P reserves, which are of significant value during this period of heightened energy pricing,” Nicholls said.
“Gross reserve and contingent resources of 452 PJ at West Erregulla is indicative of the recoverable gas potential of Strike’s dominant operated position in the Erregulla region where it holds a 54 to 100 per cent direct and indirect interest throughout its tenure.”
This considerable low-cost energy and endowment will be used in part to support the company’s move to vertically integrate into fertiliser manufacturing and prepare for its next wave of substantial growth through its Project Haber development.
Furthermore, Warrego Energy Group’s CEO, Dennis Donald said of the appraisal well’s success: “The success of the WE3 appraisal well has resulted in a significant increase in reserves and attributable to the northern area of the West Erregulla gas field. This outcome is consistent with our view that gas has migrated through the basin from south to north, filling West Erregulla and spilling into structure to the north and north-east.”
“We are also evaluating recently acquired data that indicates there may be additional reserves potential in the central area of West Erregulla. However, further analysis, mapping and modelling is require before we can draw any substantive conclusions,” said Donald.
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