Strike Energy slashes Erregulla gas reserves assessment

Strike Energy has revised its resource estimates downward for its Erregulla gas field in Western Australia's Perth Basin following a new assessment by independent auditors Netherland Sewell and Associates. The latest review contrasts sharply with the initial, more optimistic outlook from September 28, 2022.

The revision is attributed to the lack of data available during the original certification. Subsequent drilling at the SE 2 and SE 3 wells, along with additional information from nearby wells, revealed the initial projections were overly optimistic. A Strike spokesperson explained that the original certification relied on data from fewer wells and assumed a thickening of the reservoir based on these limited data points. However, recent drilling results have shown this assumption to be incorrect, leading to a reduced net pay thickness and a downgrade of the reserves at South Erregulla. Additionally, the contingent resources on the western side of the field have been written off completely.

Alongside this announcement, Strike has revealed plans to develop an 85 MW peaking power plant.

Read more here.

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