Strike granted South Erregulla production license, begins appraisal drilling

Strike Energy Ltd. is drilling the South Erregulla-2 (SE-2) appraisal well and has been awarded production license L24 in South Erregulla gas field in Perth basin, Australia, to support South Erregulla Phase 1 development.

Issuance of the license award by the Department of Mines, Industry, Regulation, and Safety prior to the field’s final investment decision will allow Strike to control and forecast the completion and start-up for the South Erregulla Phase 1 development, the company said in a release last week.

Strike spudded SE-2 on August 22. The primary objective is to prove continuity of South Erregulla gas field to the west and to expand the existing 128 petajoules (PJ) of independently certified 2P reserves prior to sanctioning development.

Drilling, casing, and pressure testing of the top-hole section has been completed down to about 2,100 m measured depth (MD). Subsequently, Strike has drilled the intermediate section down to 4,259 m MD and is conducting a bit change before reaching section depth and casing and cementing with 9 ⅝-in. casing. The company will then run in to drill the well to total depth which will pass through the principal target in the Kingia sandstone.

With the production license, Strike can now submit the facility safety case and environment plan required to begin construction of the proposed Phase 1 development following an investment decision.

Strike Energy is operator at South Erregulla (100%).