Strike Energy’s West Erregulla development gains government support

Oil and gas exploration firm Strike Energy has received support from the West Australian state government for its planned development of the West Erregulla discovery.

The West Erregulla gas field is located in the Perth Basin of Western Australia.

The Government of Western Australia has awarded Strike Energy ‘lead agency status’ for the West Erregulla gas project.

Under the Lead Agency Framework, the Department of Jobs, Tourism, Science and Innovation will provide the project with case management for government interfaces, as well as the coordination of approvals across several government departments.

Last week, Strike Energy selected the Australian Gas Infrastructure Group (AGIG) to build and operate a 50 terajoules per day (TJ/d) gas plant for the first phase of the West Erregulla development.

West Erregulla lies within EP469, with Strike Energy holding a 50% interest and operates the assets. The remaining 50% is with Australian oil and gas firm Warrego Energy.

Strike Energy managing director and CEO Stuart Nicholls said: “The lead agency status award from the premier is recognition of the important role that the Perth Basin will play in the states energy security.

“This framework will help Strike meet the permitting and approvals timelines required to deliver gas under Strike’s aspired schedule.

“West Erregulla is one of the largest and lowest cost onshore conventional gas resources in Australia. Gas is an important driver of job and revenue creation to the Western Australian economy, and is an enabler for a rapid reduction in the carbon intensity of our energy system by displacing coal and diesel fired electricity generation, which remains widespread throughout the state.”

In February this year, Strike Energy announced the progression of appraisal and pre-development activities at the West Erregulla gas field.

In November 2019, Strike Energy completed drilling and flow-testing operations of the West Erregulla-2 well. The company released a 2C Contingent Resource estimate of 1,185bcf (gross) for the Kingia and High Cliff Sandstones at West Erregulla.