Strike’s Southern Cooper Basin Gas Project Highlights
Large gas resource within PEL 94, PEL 95, PEL 96 and PELA 640
- Direct access to infrastructure and Eastern Australian gas markets
- Sustained gas flows established at the Le Chiffre 1 and Klebb -1 -2 -3 wells with Klebb 4 production imminent
- Conditional gas off-take agreements with substantial domestic gas consumers
- Prospective Resource booked at Le Chiffre 1 and Klebb 1 well locations
- Targeting commercial gas flows in 2016
Strike’s Value Creation Strategy
The Cooper Basin is known as Australia’s most prolific onshore hydrocarbon region and has been recognised as the most likely source of gas to supply the looming Eastern Australia gas shortfall. Strike is focused on the rapid appraisal and commercialisation of a very large gas resource contained within PEL 94, PEL 95 and PEL 96 to meet this demand and has signed conditional gas off-take agreements with three substantial domestic gas consumers. The PELA 640 permit includes an area which is interpreted as an extension of this resource.
The Cooper Basin is Australia’s premier location for evaluation of gas resources due to historical hydrocarbon production, developed infrastructure and existing geologic database. Within the basin, large prospective gas resources are known across a number of plays and the gas pipelines which connect the Basin to the east coast gas markets provide means of near term monetisation.
Strike has a significant permit position across the Cooper-Eromanga Basin with in excess of 9,200 km2 across its five permits. Three of the Cooper Basin permits (PEL 94, 95 and 96) are on the southern flanks of the Cooper Basin. A fourth permit, PELA 640, has been offered to Strike by the Government of South Australia, subject to finalisation of the necessary Native Title agreements.
Strike’s Southern Cooper Basin Gas Project (PEL 94, 95 and 96) is targeting the gas potential of a series of very thick coals across a large portion of the permits. A significant upgrade to the prospective resource was made in 2012 after high gas content and thick coal was encountered in the Marsden 1 and Davenport 1 wells. Strike subsequently drilled the Le Chiffre 1 and Klebb 1 wells in the Weena trough of PEL 96 during 2013. The program confirmed the presence of thick gas bearing coals, with Le Chiffre 1 and Klebb 1 encountering a total of 105m and 145m of coal respectively and both wells having an individual Patchawarra seam 35m in thickness. Klebb 1 encountered the thickest total accumulation of Permian coal known in the Cooper Basin.
Strike has been conducting a series of flow tests at the Le Chiffre and Klebb locations with large and small fracture stimulations. Having achieved sustained gas flows to surface further data gathered from ongoing testing will provide information about the optimum combination of well technologies and stimulation requirements required to maximise well productivity and recovery.
In April 2015, Strike announced the assessment of a Contingent Resource by independent consulting firm DeGolyer and MacNaughton, which confirms the potential of the gas resource in PEL 96.
The drilling and testing of further wells in the PEL 96 permit area will be undertaken as the project moves toward development.
In addition to the Southern Cooper Basin Project, Strike owns and operates PEL 515. The permit is prospective for oil in conventional Jurassic and Cretaceous targets on the South Western margin of the Cooper Basin, a potential extension of the Western Flank oil fairway. 3D seismic acquisition and interpretation will be required to identify prospects for future exploration drilling.
Strike’s Key Permits
|PEL 94||35%||Beach Energy||315||Davenport 1 drilled in 2012 encountered over 110 metres of net coal including a single seam 45 metres thick. The well was fracture stimulated in Q3 2014 and is currently awaiting completion.|
|PEL 95||50%||Beach Energy||649||Marsden 1 drilled in 2012 targeting coal and shale formations.|
|PEL 96||66.7%||Strike Energy||1,796||Le Chiffre 1 and Klebb 1 drilled in 2013 both encountered net coal in excess of 100m (110m and 145m respectively) including a single seam 35m thick. The wells were stimulated in mid 2014, and are undergoing extended production testing. Two follow up wells (Klebb 2 and Klebb 3) were drilled in late 2014, stimulated and are now undergoing extended production testing. Klebb 4 (2016) has been stimulated and is being production tested in conjunction with Klebb 1, 2, and 3. Contingent Resource Assessment completed by DeGolyer and MacNaughton in 2015.|
|PELA 640||100%||Strike Energy||3,443||Strike has been offered PELA 640 by the Government of South Australia. Award of the permit will not be made until the requisite Native Title Agreements are in place.|
|PEL 515||100%||Strike Energy||3,029||Conventional potential|