PERTH (miningweekly.com) – ASX-listed Strike Energy and Talon Energy have taken an investment decision on the A$14.4-million Walyering gas project, in the Perth basin.
The development will consist of the completion of the Walyering 5 and 6 wells, with production processed on-site through a facility designed to process 33 TJ/d of gas and separate between 150 bbl/d and 300 bbl/d of condensate which will be diverted to onsite storage, amounting to 1 400 bbl, making it available for delivery to point of sale via truck transport from the Brand Highway.
Gas production will initially be tied into the nearby Parmelia gas pipeline, with an ongoing review into the feasibility of connecting into the Dampier to Bunbury natural gas pipeline at a later date.
“With this development decision at Walyering only nine months since the discovery, Strike will complete its transition into production operations by the end of 2022. Walyering is estimated to produce between A$50-million and A$75-million a year in gross cashflows based on the current estimated range of product pricing and production rates,” said Strike MD and CEO Stuart Nicholls.
“The free cashflow yield of these revenues is projected to be in excess of 90% due to the high quality of the Walyering gasfield. The entry into production may support a general increase in the value of the company’s undeveloped assets with Strike being able to access a broader range of capital options to support Strike’s next wave of growth.”
Talon MD and CEO Colby Hauser said that with this investment decision, Talon would make a rare transition from explorer to producer.
“The project showcases a quick, low-cost development which will see Talon generating significant cashflows from early 2023 in an environment where access to capital is increasingly difficult. Walyering proves the commerciality of Jurassic wet gas in the Perth basin and has highlighted the significance of our Condor prospect which we hope can deliver another successful exploration outcome in the coming years.”