Perth Basin producer Strike Energy has made two new discoveries during drilling at its Erregulla Deep-1 well, intercepting gas at depths never previously encountered in the region.
Strike intercepted 26m of net gas pay within the basin’s Kingia sandstone formation with an average porosity of 13 per cent and at around 7,623 pounds per square inch absolute – a measure of reservoir pressure.
A second intercept of 2m at average porosity of 11 per cent and reservoir pressure around 7,807 psia was reported within the High Cliff sandstone structure.
The intercepts were made during the Erregulla Deep-1 exploration well campaign, east of the West Erregulla joint venture with Hancock Prospecting.
Strike said the well extended the company’s Permian gas play into a region where it had a “commanding 100 per cent owned acreage position”.
Erregulla Deep-1 was drilled to a depth of 5,225m measured depth, making it the deepest well ever drilled onshore in Australia.
Strike managing director Stuart Nicholls said the company was excited by the results of the drilling.
“The discoveries at Erregulla Deep are higher quality than Strike anticipated prior to drilling, with reservoir quality, formation pressures and lower CO2 content all exceeding expectations relative to the West Erregulla wells,” he said.
“The Erregulla Deep-1 well is the most easterly and deepest penetration of the Kingia-High Cliff sandstones in the basin to date and is a significant play extender to the east and at depth for Strike’s 100 per cent acreage.
“Erregulla Deep will be completed as a future producer and on a successful flow test may add to the overall developable resource in EP469 / L25, which includes the West Erregulla gas field’s independently estimated gross 452 PJ of 2P reserves plus 2C contingent resources.”
The resource in EP469/L25 is the ground covered by the Strike Energy-operated West Erregulla joint venture with Gina Rinehart’s Hancock Prospecting, and the pair are progressing the project towards a final investment decision before the end of the year.
Strike already produces gas in the Perth Basin from its 100 per cent owned Walyering project and has in place a government-endorsed gas acceleration plan to bring four projects into production by 2026.
The company’s exploration efforts hit a hurdle earlier in 2024, when two wells at its South Erregulla project did not flow as expected.
Strike has since outlined an ambitious plan to build a gas-fired power plant at South Erregulla, with a vision of using the existing gas system to generate electricity at time of peak demand in the South West Interconnected System.
Strike shares were trading 2.5 per cent higher at 9.10am, at 20c each.
