Gas from Strike Energy’s (ASX:STX) WA-based Walyering gasfield – up to 10 terajoules (TJ) per day – will soon flow through the WA Dampier to Bunbury natgas pipeline from late 2024.
This comes on the back of a fresh deal with pipeline giant APA Group inked Tuesday.
A new connection will be constructed to link up the pipeline with Strike’s Walyering assets – thus the wait until late-year.
Strike wants to use the Dampier-Bunbury pipeline for liquidity purposes.
In short: nearly all of WA’s daily gas is ported through the Dampier pipeline (abbreviated DBNGP), providing an “attractive market for Strike’s incremental sales.”
“Strike intends to run a marketing process for this additional volume in the coming months,” the company wrote on Tuesday.
Last month, the Walyering field hit nameplate capacity with Strike reporting a potential to produce 34TJ per day.
A solid 34TJ of gas was reportedly delivered into the domestic gas market on 6th of February – given strong enough demand, Strike says it can keep this up.
An appraisal well will be sunk on-site at Walyering in the coming weeks and months – Walyering-7 – and if results come up strong downhole that asset, the company could see sentiment towards it recover.
In January of 2024, Strike shares were worth 50cps – as of Tuesday morning, they’re up 3.57% to 21.8cps.
Strike tumbled dramatically in Q1CY2024 when it revealed that its South Erregulla assets might not be that exciting a value proposition for investors.
Strike’s producing gas plays have also been the subject of interest from high-profile WA mining billionaires.
Shares last at 21.8cps.