Strike Energy's Walyering West-1 Flow Test Opens New Gas Supply Path

Strike Energy (ASX:STX) has a new gas development opportunity on its hands after flow testing at the Walyering West-1 exploration well in the Perth Basin confirmed sustained flows from the Cattamarra Formation. The well, drilled about 3 km from the existing Walyering Gas Facility, produced a stabilised rate of 11 MMscf/d from the C1 Sand through a 36/64″ choke at 1,575 psi flowing wellhead pressure.

The 12-day program tested four separate sand intervals – A sub1, C1, D1 and D2-4 – and recovered gas streams consistent with the existing Walyering field, with low impurity levels and associated condensate. That matters because the well sits immediately adjacent to existing infrastructure, meaning any reserves booked from the evaluation can be commercialised at low incremental cost.

MD and CEO Shelley Robertson said the result demonstrates the reservoir quality and the potential to add gas supply for existing contract commitments. Strike already has two firm gas supply agreements tied to Walyering: a five-year deal with Santos WA Energy for 36.5 PJ and a two-year deal with Alinta Energy WA for 3.4 PJ.

The Walyering field sits in production licence L23, 150 km north of Perth. Strike sanctioned the project in CY22, nine months after discovery, which gives a sense of the development speed on this play. The company now moves into an evaluation phase to determine what the new accumulation means for reserves and production.

STX closed up 2.38% at 10.8 cents, market cap $377.9 million. The stock page is STX.