Strike secures production licence for South Erregulla gas field in WA

Strike Energy, an Australian energy producer, has been granted a production licence by the Western Australian government for its 100% owned and operated South Erregulla gas field in Western Australia, it announced on September 13. 

The issuance of the South Erregulla production licence prior to the field’s final investment decision will allow Strike to control and forecast the completion and start-up for the South Erregulla Phase 1 development with a higher degree of accuracy, the company added.

Strike Energy has also commenced a high-impact South Erregulla appraisal drilling campaign. The SE-2 appraisal well was spudded on August 22 and has subsequently drilled to 4,259m (measured depth) within the intermediate hole section. The primary objective of the SE-2 well is to prove the continuity of the South Erregulla gas field to the west in order to expand the existing 128 petajoules of independently certified 2P reserves prior to sanctioning development.

The South Erregulla gas field development is part of Strike Energy's government-endorsed gas acceleration and development strategy which aims to provide incremental gas supply into a tightening Western Australian market.

Strike earlier this year 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 - Walyering, Ocean Hill, and the South and West Erregulla gas fields - to come online by the end of 2025, commencing with Walyering.