Strike Energy spuds Erregulla Deep-1 well in Western Australia

Sydney-listed Strike Energy has commenced drilling the Erregulla Deep-1 exploration well in EP469 in Western Australia, it announced on June 27.

The Erregulla Deep-1 well is being drilled into an interpreted structural closure adjacent to and east of the existing reserves at the West Erregulla gas field, on trend with the Lockyer and North Erregulla gas discoveries.

The EP469 joint venture comprises Strike Energy as the operator with a 50% interest, while Warrego Energy owns the remaining 50%.

Last year, the company launched its gas acceleration strategy post-receipt of A$136mn ($90.4mn) in proceeds from the sale of its Warrego Energy shares. The company is targeting up to four sources of gas production - Walyering, Ocean Hill, and the South and West Erregulla gas fields - to come online by the end of 2025, commencing with Walyering.

This week, Strike announced plans to develop a fully integrated 85 MW peaking gas power plant in South Erregulla. The proposed power plant will be fueled by South Erregulla’s gas reserves, which support a project life of over 25 years. The project is expected to utilize about 1.3 petajoules of gas per year and generate revenue of A$40mn to A$50mn/year over the first five years of operations.