- Strike Energy (STX) and Talon Energy’s (TPD) environmental plan for the Walyering gas field has been approved
- The approval enables Strike, the operator of the JV, to begin construction at the site in the Perth Basin of Western Australia, which is expected to take six weeks
- Approval for Strike’s safety case is anticipated in the coming weeks; this is the final approval needed and will manage safety systems for production operations
- Strike says costs for its upstream facility have risen, and it now estimates a gross cost of $19.2 million plus $3.8 million to connect to APA’s Parmelia gas pipeline
- STX shares are down 5.13 per cent and trading at 37 cents and shares in TPD are trading at 14 cents at 2:04 pm AEDT
Strike Energy (STX) and Talon Energy’s (TPD) environmental plan for the Walyering gas field development has been approved.
The approval will enable Strike, the operator and holder of 55 per cent of the joint venture, to begin construction at the site in the Perth Basin of Western Australia.
It makes up part of Part V works approvals; Strike’s safety case is the only remaining approval needed.
The safety case will manage the safety systems for production operations, and Strike expects to receive approval in the coming weeks.
In the meantime, Strike said it would start construction works based on its existing safety management systems, and it anticipates this work will take six weeks to complete.
Production and gas sales are expected to begin in April, subject to the completion of the connection to APA Group’s Parmelia Gas Pipeline and final quality assurances of an upstream facility.
In this vein, Strike told investors today that it had incurred cost increases in well completions and an increased scope associated with improving facility reliability and APA’s pipeline connection.
The upstream scope has been bumped up to an estimated $19.2 million, with APA’s scope increased to $3.8 million.
A workover rig is on the Walyering-5 well before moving to Walyering-6 to install production completions.
Strike said solar array installation was progressing well, with substantial amounts of fabricated equipment to construct the facility mobilised to the site.
STX shares were down 5.13 per cent and trading at 37 cents and shares in TPD were trading at 14 cents at 2:04 pm AEDT.