Strike, Talon score with thick gas accumulation at Walyering-5
Strike Energy (ASX:STX) has clocked in what appears to be another success in the Perth Basin, with its Walyering-5 appraisal well confirming the presence of a high-quality conventional gas accumulation at the Walyering gas field.
The intersection of four gas-charged reservoirs with total net pay of 51m and average porosity of 15.4% — which is well above the 10.3% seen at its highly successful West Erregulla-2 well — exceeds pre-drill expectations and adds another notch to the company’s belt.
Exciting as the news might be for Strike, it is even more significant for its partner Talon Energy (ASX:TPD), which holds 45% of the EP447 permit that hosts the field.
Not only does the Walyering-5 represent Talon’s first big hit in the Perth Basin, it could also spark a spark a significant re-rating of its much larger Condor Structure, which has the potential to host up to 10 times the gas resources being targeted at Walyering — while also being about 1,500m shallower.
The lower than expected ratio of condensates is also seen as a positive as it means a lower development cost and faster to market profile.
The results from Walyering-5, which was designed to test the up-dip potential of the Walyering wet-gas discovery, exceeded Strike’s expectations due to the higher quality reservoir observed and the presence of additional net gas pay in deeper sands, the company said.
Gas was noted in the regional A, B and C Sands within the Jurassic aged Cattamarra Coal Measures seen in the historical Walyering wells, and nearby Jurassic gas discoveries such as Gin Gin, Red Gully and Ocean Hill.
Core samples have been taken from the A Sand to verify the regional nature of the reservoir.
Gas samples measured in the laboratory were found to contain just 0.69% CO2, which is consistent with the better than pipeline-specification sweet gas seen in the historical Walyering production stream.
EP447 is located within the Perth Basin, which is fast becoming Australia’s next major oil
and gas hub thanks to its location just 180km north of Perth and proximity to established gas transmission infrastructure.