Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed Strike Energy on Thursday unveiled a gas acceleration strategy to bring up to four gasfields into commercial production by 2025, using the near A$136-million in proceeds from the sale of its Warrego Energy stake to suitor Hancock Energy.
Strike Energy in a statement said that the development of the four gasfields would be subject to the successful outcomes of appraisal activities and, where required, joint venture processes.
The four gas production targets are Walyering, which is due to commence production early this year, West Erregulla, South Erregulla and Ocean Hill. The strategy will look to exploit Strike’s existing 371 PJ of net 2P reserves proven up across the Greater Erregulla and Walyering fields, convert Strike’s existing 610 PJe of net 2C contingent resources to reserves and test 275 PJe of new net 2U prospective resources to delineate further gas resource upside.
“Strike’s fully funded gas acceleration strategy provides a compelling investment opportunity. With the Western Australian gas market short in the immediate term, Strike’s counter cyclical exploration and appraisal activities over the past few years have the company extremely well positioned to deliver high-return, valuable domestic gas developments at a time where there is little alternative,” said Strike MD and CEO Stuart Nicholls.
“The strategy and capital programme will also allow Strike to explore some of the untouched and highly prospective areas of its portfolio with the potential to prove up additional resources and reserves that may provide the Western Australian government with the security its needs to support granting Strike a liquefied natural gas export exemption.”