Strike Energy launches gas acceleration strategy
Australia’s Strike Energy on March 2 launched its gas acceleration strategy post-receipt of A$136mn ($92mn) in proceeds from the sale of its Warrego Energy shares. The company is targeting up to four sources of gas production to come online by the end of 2025, commencing with Walyering.
“Strike’s fully funded gas acceleration strategy provides a compelling investment opportunity. With the Western Australia (WA) gas market short in the immediate term, Strike’s counter cyclical exploration and appraisal activities over the past few years has the company extremely well positioned to deliver high return valuable domestic gas developments at a time where there is little alternative,” CEO Stuart Nicholls said.
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The four gas production targets are Walyering, which is due to commence production early this year, West Erregulla, South Erregulla and Ocean Hill.
“The strategy and capital program will also allow Strike to explore some of the untouched and highly prospective areas of its portfolio with the potential to prove up additional resources and reserves that may provide the WA government with the security its needs to support granting Strike an LNG export exemption,” he added.
Strike will look to exploit its existing 371 PJ of net 2P reserves proven up across the Greater Erregulla and Walyering fields, convert the existing 610 PJe of net 2C contingent resources to reserves and test 275 PJe of new net 2U prospective resources to delineate further gas resource upside.
Strike recently closed its off-market takeover bid for Warrego and accepted Hancock Energy’s cash offer of A$0.36 ($0.25)/Warrego share which resulted in realisation of A$136mn in proceeds to Strike.