Strike Shores up Resources at Oz West Erregulla Field
An independent assessment has placed 2C gas resources at the central area reservoir of the Strike Energy-operated West Erregulla field in Western Australia at 513bn ft3, Strike's partner Warrego Energy announced on May 18.
The review was carried out by Perth-based Risc Advisory, Warrego said. The result from one well "confirms West Erregulla as a world class asset with significant upside potential," the company's CEO Dennis Donald said. "To put this in perspective, three wells were drilled on the nearby Waitsia field before similar volumes were booked."
"Importantly, independent third-party certification also provides a high level of certainty to prospective gas buyers as well as potential suppliers and stakeholders," he continued. "It also enables Warrego to target optimal outcomes when negotiating gas sales and processing arrangement."
Negotiations are ongoing with a number of potential gas buyers and Warrego is "actively progressing commercialisation options," Donald said.
Warrego and Strike each own a 50% stake in the EP 469 permit containing West Erregulla. They discovered the field in the onshore Perth basin in November last year, with Strike hailing it was one of the largest conventional gas finds ever to be made onshore Australia.
The pair have approved plans for up to three more appraisal wells and a 3D seismic programme at the site. The first well is due to be spudded in the second half of 2020.