- Strike Energy (ASX:STX), in partnership with Talon Energy (ASX: TPD), provides an update on the Walyering gas field production
- During September, a gross total of around 52 terajoules of commissioning gas was sold at varying rates during the startup phase
- Firm gas sales commenced on October 1 when the Walyering gas field began exporting sales gas into the Parmelia Gas Pipeline under a long-term GSA with Santos
- Strike Energy aims to ramp up production towards the facility’s full capacity over the next quarter
- Shares last traded at 41.5 cents
Strike Energy (ASX:STX), in partnership with Talon Energy (ASX: TPD), has provided an update on the Walyering gas field production.
During September, a gross total of around 52 terajoules of commissioning gas was sold at varying rates during the startup phase.
Firm gas sales commenced on October 1 when the Walyering gas field began exporting sales gas into the Parmelia Gas Pipeline under a long-term gas supply agreement with Santos WA Energy (ASX: STO).
Condensate production has remained in line with forecasts at around 200 barrels per day during the firm supply period, and the first condensate shipment occurred in early October.
It’s important to note that both gas and condensate sales are in US dollars. The Santos GSA covers the supply of 36.5 petajoules over five years on a firm, take-or-pay basis.
Now that the field has achieved stable production rates, Strike Energy will gradually increase production to reach the facility’s full capacity of 33 TJ/d in the coming quarter.
The Walyering field holds certified proved and probable (2P) reserves of 56 petajoules equivalent (PJe), with Strike’s share being 32 PJe. Additionally, there are 33 PJe of 2C contingent resources in the western compartment of the field, with plans to drill the Walyering-7 well in Q1/24 to advance these resources to reserves.
The development cost, including well completions and facility construction, was $30 million gross, with $16.5 million net to Strike.
Strike anticipates recovering these costs through gas and condensate sales within about two quarters, highlighting the project’s strong financial returns.
In support of Talon Energy, Strike has offered additional financial support should Talon require it due to the increased final cost of the Walyering project.
STX shares last traded at 41.5 cents.