- Definitive documentation for farmout to Talon Petroleum executed.
- Walyering appraisal well to be added to CY21 Perth Basin drilling program.
Strike Energy Limited has executed
the definitive documentation reflective of the agreed terms announced on 20th July 2020 for the
farm-out of a 45% non-operated interest in EP447 to Talon Petroleum Limited (Talon) in
exchange for a $6 million carry.
Talon has paid a $1 million transaction bond, which is to be applied towards Talon’s free carry
The transaction remains subject to ministerial approval, following which Strike and Talon will be
taken to have formed an unincorporated Joint Venture in EP447 (Walyering). The JV will then
proceed to appraise and, if warranted, develop the Walyering wet-gas discovery.
Strike has completed the well design and identification of a proposed well location in
preparation for the upcoming appraisal drilling in CY21.
Strike has commenced discussions with nearby industrial gas and energy users for the potential
consumption of the gas and condensate streams should the Walyering appraisal well prove
successful. Due to the ‘sweet’ nature of the hydrocarbon stream and low inert / CO2 content
expected (evidenced via the Walyering-1 production analysis), Strike is confident that Walyering
can be brought onstream quickly without the establishment of major processing infrastructure.
Jurassic wet-gas play
Walyering is an excellent test-case for the geotechnical work Strike has carried out across the
Jurassic Wet Gas Play in the Cattamarra sequence. Should the appraisal drilling prove up a
commercial development, then Strike expects this will be a catalyst for a material uplift in
valuation of its net 1,353 km² acreage position across the play. On success, Strike will look to
accelerate Ocean Hill 3D seismic which represents a significant structure that continues this
Strike Energy Managing Director & CEO Stuart Nicholls, said:
“Strike is pleased to close this transaction and welcomes Talon as its joint venture partner at
Walyering. This transaction will support the acceleration of appraisal drilling at Walyering which,
if successful, could be a fast to market additional source of production from Strike’s substantial
acreage position in the Perth Basin.”
About Walyering – EP447
The Walyering conventional gas discovery was made in the Cattamarra Coal Measures (at an
approximate depth of 3,400m SS), a play that has been proven to support commercial
production from the gas projects at Gin-Gin and Red Gully.
The permit covers 1,110 km2 and was acquired in 2018. Since acquisition Strike has carried out
over 90km2 of 3D seismic at Walyering in late 2019 which has markedly improved Strike’s
confidence in both Walyering and the broader Jurassic wet gas play. The high-resolution data
indicates the presence of a wet-gas accumulation up-dip of the Walyering-4 well location.
Walyering is strategically advantaged with its location being situated between WA’s two major
gas transmission lines, and with the gas that flowed from Walyering-1 measuring only 1% CO2
and flowing at 13.5mmscf/d. Furthermore, major industrial gas users are located in the
immediate area with established uses for both the gas and condensate streams at their
operations. This all translates into a potentially low cost and fast paced development without the
need for significant processing or transport infrastructure.