Strike Energy Provides Walyering Update

Source: 3/14/2023, Location: Not categorized

• The Environmental Plan for the construction and commissioning of the Walyering gas field has been approved.
• Construction and commissioning estimated to take approximately 6 weeks with production operations to follow on completion of pipeline connection.

Strike Energy Limited on behalf of the EP447 Joint Venture, (where Strike is operator and the holder of 55% and Talon Energy (ASX: TPD) the other 45%) provides an update on the Walyering gas field development.

Strike has now received multiple key regulatory approvals via the Part V works approvals, Pipeline License and now the Environmental Plan (EP) which will support construction and commissioning operations. The only remaining approval is Strike’s safety case which will manage the safety systems for production operations and is expected to be approved in the coming weeks. With the issuance of the EP Strike can now start construction works based on its existing Safety Management System with construction expected to take approximately 6 weeks.

Commencement of production and gas sales is expected to occur in the month of April subject to the completion of the connection to APA Group’s Parmelia Gas Pipeline and final quality assurances of the upstream facility.

The upstream facility remains largely on budget however cost increases have been incurred in the well completions, increased scope associated with improving facility reliability and APA’s pipeline connection. Overall Strike’s latest estimate indicates that the upstream scope is now $19.2m with APA’s scope increasing to $3.8m.

The workover rig is currently on Walyering-5 before moving to Walyering-6 to install the production completions. The solar array installation is progressing well with substantial amounts of fabricated equipment to construct the facility already mobilised to site.

About the Walyering Gas Field
The EP447 JV sanctioned the development of the 33 TJ/d and 250 bbl/d production facility at the Walyering gas field following the successful appraisal of the field via the Walyering 5 and 6 wells, which delineated a gross 54 PJ of 2P Reserves and gross 32 PJ of 2C Contingent Resources plus ~0.8mmboe of associated condensates1. First gas sales are targeted in April 2023 with 36.5 PJ of gas sold to Santos-WA Limited on a firm basis over a period of 5 years. The current gross cost of the wells and production facility is estimated at approximately $19.2m plus at least $3.8m in costs for the connection and metering to the APA owned Parmelia Gas Pipeline. The overall fixed and variable operating cost of the field is estimated at approximately $0.19/GJ based on 33 TJ/d annual average production2. The facility, which will be the closest source of gas to the major Southwest gas market and will be powered purely by solar and battery storage enables Walyering to have one of the lowest emissions intensities for current WA domestic gas supplies.

This announcement is authorised for release by the Managing Director and Chief Executive Officer in accordance with the Company’s Continuous Disclosure Policy.

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