West Erregulla (EP 469)

In early 2018, Strike farmed into the EP 469 exploration for 50% and operatorship with Warrego Energy (Warrego), on the basis that the permit was prospective for the Kingia High Cliff conventional gas play, proven by the adjacent Waitsia field. Since assuming operatorship, Strike has conducted an extensive technical review of the permit, including reprocessing and reinterpretation of the West Erregulla 3D seismic survey, which was acquired by Warrego in 2014. The reinterpreted seismic has yielded a substantial target at the Kingia High Cliff interval, as well as other stacked plays in the basal Wagina formation (gas), and the Cattamarra formation (oil). Each play is amplitude supported, meaning that seismic amplitude anomalies at each level are indicative of hydrocarbon filled porosity. There is a tight gas discovery in the Dongara sandstone at West Erregulla with a 2C contingent resource booking of 72BCF.

As part of the farm-in agreement, Strike will free carry the first $11 million of well costs for the drilling of the West Erregulla 2 well. Well planning, procurement and approvals have been finalised, with the Easternwell 106 drill rig due to spud the well in May 2019. The well is prognosed to intercept the three plays outlined above and will TD in the Holmwood shale at approximately 5200m.

Other Perth Basin Assets (Formerly UIL Energy)

In early 2019, Strike completed a successful takeover of UIL Energy (UIL). UIL’s exploration assets were all in the Perth Basin, and include EP 447 (Walyering), EP 488, EP 489, EP 495 (Ocean Hill), and several EP applications (EPA82, EPA 98, and EPA99) adjacent to West Erregulla.

Walyering (EP 447)

The Walyering discovery in EP 447 is subject to a farmin agreement with Pancontinental. Pancontinental can earn up to 70% and operatorship of the permit through successful planning and execution of the Walyering 3D seismic survey. The survey is due to commence in Q2 of 2019.

Ocean Hill (EP 495)

Ocean Hill was discovered in 1991 by the drilling of the Ocean Hill 1 well. The well flowed gas and condensate from the Cadda formation during DST testing, and is also prospective in the adjacent Cattamarra formation. There is currently a 2C contingent resource booking of 360BCF over the discovery. Strike are currently evaluating the best way to appraise the Ocean Hill discovery, via either 3D seismic or additional drilling.