South Erregulla

South Erregulla

The South Erregulla field sits within L 24 & EP 503, which is owned and operated 100% by Strike. It is situated approximately 350 km north of Perth near the town of Dongara in the Mid West. L 24 & EP 503 sit directly adjacent to and south of Strike’s 50% owned EP 469, which contains the West Erregulla gas field.

South Erregulla was discovered by Strike in FY22 after acquiring and interpreting the Maior 2D seismic survey and the drilling of the South Erregulla-1 exploration well. The well discovered 14m of Net Pay in the Permian aged Kingia Sandstone, as well as 4m of Net Pay in the basal Wagina Sandstone.

Appraisal Drilling

Recently, Strike drilled two appraisal wells into the western compartment of South Erregulla. Both appraisal wells, South Erregulla 2 and 3, were drilled successfully and intersected good quality reservoir that was interpreted on petrophysical logs to be gas saturated. On flow testing, South Erregulla 2 flowed water and minor gas to surface, whilst South Erregulla 3 was unable to establish flow. On the 24th of June 2024, Strike released the results of the reclassification of the Reserves within the South Erregulla L24 production licence, by independent auditors Netherland, Sewell and Associates Inc. (NSAI).

Development

Strike will look to construct and operate a fully integrated 85 MW peaking gas power plant on Strike’s Precinct with operations to commence by October 2026. See South Erregulla Peaking Power Plant for more information. The proposed power plant will be fuelled by South Erregulla’s newly re-certified gas Reserves, where the 1P Reserves of 37 PJs[1] supports a project life of more than 25 years[2].

[1] Reserves re-certified by NSAI as at 31 May 2024 and reported to Strike on 21 June 2024. Refer to ASX announcement “South Erregulla Reserves” dated 24 June 2024 for important information regarding the South Erregulla Reserves and Resources report.

[2]  Project life modelled on average throughput of ~1.3 PJ per annum, refer ASX announcement “Peaking Power Plant submission supported by South Erregulla Reserves” dated 24 June 2024 for key operating assumptions.