Strike Energy exports sales gas from Walyering field

Strike Energy Ltd. started exporting sales gas from the Walyering gas field into the Parmelia gas pipeline onshore Western Australia.

Gas exports began Oct. 1, 2023, under the L23/EP447 Walyering field joint venture long-term gas supply agreement with Santos WA Energy Ltd. Condensate production has been within forecast rates of about 200 b/d since the first offloading of condensate to its point of sale at Port Bonython on Oct. 5.

The Santos Gas Supply Agreement is for 36.5 petajoules (PJ) over 5 years on a firm, take-or-pay basis at 20 terrajoules/day (TJ/d) with arrangements for supply of additional gas on an “as available basis.” Now that stabilized rates for the firm contracted production have been achieved, Strike will ramp up the field to 33 TJ/d over the coming quarter.

Walyering field is independently certified as having proved and probable (2P) reserves of 56 PJ equivalent (PJe) and a further 33 PJe of 2C contingent resources in the western compartment of the field.

Strike will drill the Walyering-7 well first-quarter 2024 with the aim of maturing these resources to reserves.

Walyering wet gas field permit EP447 was originally deemed sub-commercial until Strike took over the permit and farmed-out a 45% non-operated interest to Talon in 2020 in exchange for a $6 million (Aus.) carry in a new appraisal well. The JV drilled a successful appraisal with Walyering-5 in December 2021 and followed up with a secondary gas find in Walyering-6 in May 2022. During September 2023, a gross total of ~52 TJ of commissioning gas was sold at varying rates during the startup of the field. These sales have now been invoiced.

Strike is operator with 55% interest. Talon Energy holds 45% interest.