• The Mid-West Geothermal Power Project’s Inferred Resource has been independently assessed by Monteverde Energy Consultants and endorsed by EarthConnect Consultants.
• Mid case estimate of 203 PJe of net electrical energy, equivalent to 226 MWe of power generation for 30 years, is assessed to be present in Strike’s acreage that has been submitted under its right for permit conversion.
Strike Energy Limited provides an update on its 100% owned proposed zero carbon Mid-West Geothermal Power Project in WA’s Perth Basin.
Strike and its consultants have completed the incorporation of its Perth Basin database into its Mid-West geothermal energy model, which has been independently analysed and interpreted by Monteverde Energy Consultants and endorsed by EarthConnect Consultants.
Strike has used this Geothermal Inferred Resource mapping to inform the areas of the best hot sedimentary aquifer geothermal resource potential, where gas is not present (and brines are), and the surface areas which have the highest likelihood of supporting a future commercial development. This analysis has formed the basis of Strike’s application to the regulator for the conversion of its Geothermal Special Prospecting Authority (GSPA) area (3,513km²) to a Geothermal Exploration Permit (GEP) of 1,826km² as outlined in the map below. The GEP issuance as per its right under the GSPA remains pending at the date of this release.
Inferred Resource
Inferred Resource Estimate Cautionary Statement:
Refer to the end of this release for the key assumptions on which the above estimates are based. The figures above represent the probabilistic estimate of the amount of net electrical power that could potentially be generated over an assumed 30-year project life from heat energy that can be recovered from the Kingia Sandstone by the application of future appraisal and development project(s); the resources are currently untested and undrilled.
These estimates are reported in accordance with the last version of the Australian Geothermal Code and are un-risked, incorporate a standard Organic Rankine Cycle binary power plant energy conversion factor (13-15%) to estimate the conversion from thermal energy to electricity and have both an associated risk of appraisal and a risk of development.
Further drilling, appraisal and evaluation is required following grant of the GEP to determine the existence of a significant quantity of commercially recoverable energy. Stated values are Strike’s estimated 100% equity share of recoverable energy.
The above stated values are calculated by reference to the total area of the GEP applied for by Strike (minus rock volumes for known gas accumulations) and may be subject to change dependent upon the GEP area granted by the WA regulator. The values reported for the original GSPA area have not been reduced to account for the known gas accumulations and are reported solely for the purpose of demonstrating Strike’s application for a GEP is over those areas within the original GSPA where Strike has assessed there to be the most prospective geothermal resource potential.
Dr. Trey Meckel from Monteverde Energy Consultants will be presenting on the work he has completed at the upcoming APPEA conference in Brisbane in May. The presentation is entitled: ‘Conceptual Model of the Lower Permian Kingia Sandstone as a Geothermal Resource’ and will include his findings from Strike’s Mid-West Geothermal Power Project.
Strike’s Managing Director & Chief Executive Officer, Stuart Nicholls said:
“The booking of this independently certified inferred resource for our proposed zero carbon Mid-West Geothermal Power Project is the first of a series of exciting milestones to come in proving a commercial development at this unique and highly complementary renewable asset.
“This resource booking will facilitate Strike planning the drilling of the proposed Future State-1 which will be the first physical test of the region’s Geothermal potential and was recently awarded a Clean Energy Future Fund grant. Success at this project could provide Strike with 226 MWe of base load, 24/7, dispatchable zero carbon electricity to integrate into its planned and growing power consumption across its domestic gas and downstream fertiliser and ammonia facilities. This
integration will support Strike’s Net Zero 2030 target and drive down the associated carbon of its products thereby increasing their global competitiveness.”
Upon grant of the GEP on conditions acceptable to Strike, Strike will be in a position to schedule the testing program, where the drilling of the proposed Future State-1 well (which was recently the subject of a successful grant award by the Clean Energy Future Fund1) would be used to confirm, amongst other things, the unsupported and artificially supported brine flow rates, resultant surface temperatures of the brine (and inversely temperature loss in the well bore), final brine chemistry and injectivity rates of returning of the brine to the reservoir. At the conclusion and on success of this testing, Strike will possess the required information to pursue the first stage of commercialisation via a pilot development.
Strike is currently working with the WA regulator on the process of managing overlying rights/ tenements for different energy products that come from similar geological horizons but different geographical areas. Testing interaction and pressure dynamics of the Kingia Sandstones will be a major objective of the proposed Future State-1 well. Strike notes several other international jurisdictions have successfully navigated these dynamics already and both energy sources can co-exist which can allow for the full strategic benefits of both the gas and this zero-carbon baseload geothermal energy to support the States decarbonisation targets.
Once the timing for the testing program is planned, Strike will begin to assess future business development opportunities for partners to participate in this potential geothermal energy resource. In the interim Strike is initiating well design optimisation, surface technology assessments and artificial lift studies, in order to progress the inferred resource to an
indicated/measured resource once testing is complete and (subject to those results) propose a scalable pilot development.
