Strike to drill Walyering gas discovery in Perth basin

Strike Energy Ltd. will drill the Walyering-5 appraisal well to recommence development of the Walyering and Ocean Hill wet-gas resources which stalled under previous ownership after initial successful exploration and appraisal outcomes.

Earth moving equipment has been mobilized to the well location where well pad construction has started to host the Ensign 970 drilling rig. Strike will receive the rig after completion of the Lockyer Deep-1 well and estimates Walyering-5 will spud in October.

Four historical Walyering wells have been drilled. Walyering-1 well encountered a thick (30 m) sand with good quality conventional reservoir development (A-Sand) and a second, deeper, thinner gas-charged sand (B-Sand). A-Sand flowed 13.5 MMscfd on test. Subsequently, three further Walyering wells were drilled on the legacy 2D seismic data in the surrounding area to hit the larger accumulation.

Walyering-2 and -3 encountered non-commercial hydrocarbon saturated reservoir at about the same level as the Walyering-1 A-Sand. These wells flowed only small amounts of gas on test. The final well, Walyering-4, was drilled in 2001 just updip of Walyering-1 and encountered commercial-grade conventional reservoir similar to Walyering-1, but was water saturated.

Strike’s ongoing analysis of the historical well results shows that the Walyering-4 appraisal well hit the gas bearing structure just above the water leg. However, this outcome, which is visible on Strike’s revised petrophysical analysis, went untested. A several meter thick gas saturated net pay zone with porosity of 15% was measured just above the gas water contact at 3,029 m. This, in addition to the seismic analysis, is an encouraging development for the potential success of Walyering-5 and confirms the presence of high porosity gas charged conventional sands in two of the four historical wells which were drilled on high amplitude conforming structures, the company said.

Walyering has about 86 bcf P50 prospective resource.

Strike owns 1,853 sq km of petroleum acreage in the central Perth basin at 100% equity. Under a farm-in agreement expected to register in third-quarter 2021, Talon Energy Ltd. will acquire 45% non-operated interest in EP447, which holds the Walyering gas appraisal prospect.

Walyering-5 drilling costs will be shared by Talon and Strike on a two-thirds/one-third basis respectively for the first $9 million. Thereafter, costs will be incurred on a pro-rata participating interest basis.