August 2024 ASX: STX The Company Announcement Officer ASX Ltd...

August 2024 ASX: STX The Company Announcement Officer ASX Ltd via electronic lodgement Successful Walyering-7 Flow Test • Walyering-7 has completed its flow testing program into the Walyering production facility with a maximum recorded gas rate of 14 TJ/d and liquid rate of 900 bbls/d of condensate. • Measurement of gas composition shows on specification low impurity gas with an elevated energy conversion factor and significantly higher condensate gas ratio than expected. Strike Energy Limited (Strike - ASX: STX) is pleased to provide the results of the Walyering-7 (W7) appraisal well flow testing program at the currently producing Walyering gas field within Production Licence L23 (100% net to Strike) in the Perth Basin. Strike has conducted flow testing operations at Walyering-7 over the last 40 days taking samples, pressures and performing build up tests of individual reservoir units. Productive gas charged reservoirs were observed in the Cattamarra Formation in the A-Sands (from 3,240m MD) with the D-Sands remaining to be tested. The tests confirmed the presence of a new movable conventional gas and condensate accumulation. The gas samples taken showed very low impurities consistent with the Walyering production stream, producing a higher heating value and a substantially higher condensate gas ratio. These are both positive results, leading to an elevated energy conversion factor and higher daily condensate production. The condensate has been analysed and laboratory work confirms that the specification of the condensate is in line with the existing production stream. The test covered 7 zones which were completed behind individual sliding sleeves. Maximum gas and condensate rates over the 40-day period were 14 TJ/d and 900 bbls/d respectively. A 6hour test of all zones flowed at 4 TJ/d and 900 bbls/d of condensate on a 24/64” choke. When configured to only 4 open zones that were identified as gassier on the petrophysics, W7 flowed at 7 TJ/d and 400bbls/d of condensate on a 20/64” choke. Analysis of testing data is ongoing in order to understand the best configuration to maximise gas production and to optimise the volume of condensate produced. All gas and condensates produced during the testing phase have been sold into Strike’s existing marketing arrangements. Walyering-7 will now be shut in and prepare for the permanent tie into the Walyering gas processing facility, which is expected to be completed before the end of the quarter. The slickline unit will now move to Walyering-6 where a test of some of the deeper prospective reservoirs will occur. Strike’s Managing Director and Chief Executive Officer said “This is a pleasing result from the Walyering-7 appraisal well, unlocking new production and throwing up some unexpected condensate and heating value results. With the new volume of condensate potential from Walyering, Strike is putting in renewed efforts to identify a higher margin opportunity to sell and or consume the condensate locally in Western Australia. We look forward to testing of the lower zones at W6 shortly and returning to perforate the DSands at W7 during the planned shutdown and inspection in Q4-CY24.