Strike keeps West Erregulla development plans on track

The company's 2020 program at West Erregulla will include engineering, development planning works and the drilling of two appraisal wells. Completion of the program will put Strike in a position to consider a final investment decision (FID) on phase one of the West Erregulla development by the end of 2020. Strike managing director and chief executive Stuart Nicholls said following this year's success, when the company discovered one of Australia’s largest onshore conventional gas fields, 2020 is set to be a year of consolidation as its transition from explorer to producer continues. “Strike is now fully funded to progress towards FID at its Tier 1 gas asset at West Erregulla,” Nicholls said. “Concurrently, Strike will also be advancing an exciting exploration program which has the potential to add material future values as the company looks to leverage off its success in EP469 with its adjacent wholly-owned acreage." The 2020 exploration program also includes activities across Strike’s 100 per cent owned land position in the Perth Basin, with 3D seismic acquisition at Walyering and across its Permian gas prone acreage in the fairway adjoining West Erregulla. These critical data acquisitions will allow Strike to mature several pre-diagnosed leads into drillable prospects and identify additional targets in highly prospective acreage currently void of seismic data. Strike’s strategy is to be in a position to deliver first gas into the Western Australian market by 2022, with CSBP (Wesfarmers) holding a gas offtake option for 100PJ of that output. Total funds from the capital procurement process, which comprised a share placement and the share purchase plan announced on November 1, 2019, were more than $30 million before costs. The share purchase plan has now closed. The timeline to FID remains subject to the appraisal results, joint venture discussions/processes and other agreements and approvals.

Strike keeps West Erregulla development plans on track

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