Strike's Walyering gas field in Australia achieves payback

Strike Energy’s Walyering gas field in Western Australia, which was brought online eight months ago, has reached the 'payback' of its total development capital spend of about A$30mn ($20mn), the company announced on May 28.

The total cost comprises facility costs of about A$24mn and well completions of approximately A$6mn. The total gross income received to date from the Walyering project is about A$47mn.

"This payback profile would be one of the fastest in recent history for a greenfield Australian oil and gas project," Strike said. 

Strike commenced gas production at the Walyering gas field in September. Strike sanctioned the Walyering gas field for development in August last year. The final investment decision was made following the completion of the independent certification of a 54.2 PJ 2P gas reserve for the Walyering gas field. 

The company last year launched its gas acceleration strategy post-receipt of A$136mn 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.