Strike Energy reaches FID for Perth basin Walyering gas project

A Strike Energy Ltd.-led joint venture in onshore North Perth basin permit EP447 has made a final investment decision (FID) to proceed with commercial development of Walyering gas field. FID followed completion of the recent independent certification of 2P gas reserves of 54.2 petajoules by RISC Advisory and a subsequent review by the joint venture into the project’s economic feasibility.

Walyering wet-gas field was originally discovered by West Australian Petroleum Pty. Ltd. (WAPET) in 1971. Despite several subsequent appraisal wells the field was deemed sub-commercial until Strike took over the renewed permit and farmed-out a 45% non-operated interest to Talon Energy Ltd. in 2020 in exchange for a A$6-million ($4.22 million) carry in a new appraisal well.

The JV drilled a successful appraisal with Walyering-5 in December 2021 and a followed up with a secondary gas find in Waylering-6 in May 2022. Both wells were successfully flow tested and the results have been used to steer design of the gas processing and condensate storage that will be located at the field.

Momentum Engineering of Perth was awarded front-end engineering and design (FEED) for upstream processing and associated infrastructure. Detailed design is nearing completion.

The initial aim is to feed processed gas from Walyering-5 and -6 into the Parmelia pipeline that lies 1 km from the field and connects other Perth basin fields in the Dongara region to Perth. The feasibility of connecting Walyering to the Dampier to Bunbury gas trunkline is under review.

The Walyering gas plant is designed to process 33 terajoules/day and separate between 150-300 b/d of condensate which will be diverted to an onsite storage tank designed to hold 1,400 bbl. From there the condensate will be trucked to market.

Strike has estimated development costs for Walyering of about A$14.4 million which include completion costs for the Walyering-5 and -6 wells and construction and commissioning of the onsite processing facility and related infrastructure. Strike estimates field operating costs will be as low as A$0.22/gigajoule with operations controlled and monitored remotely via Strike’s new operations center in West Perth.

Power will be supplied by a solar array of 108 panels and accompanying battery storage.

Gas offtake contracts are expected to be finalized during fourth-quarter 2022 with first gas sales targeted for first-quarter 2023.