Strike Energyreports that the Walyering-5 (W5) well has confirmed the presence of a high-quality, low CO2, conventional gas accumulation at the suspended Walyering gas field within the Perth Basin.

The results of W5 have exceeded the company’s expectations with both higher quality reservoir being observed, and the presence of additional net gas pay in deeper sands.

Mud logs, logging while drilling and wireline logging tools were used to evaluate the four high quality, blocky, coarse grained, conventional gas charged sands throughout the Jurassic aged Cattamarra Coal Measures. These sands are interpreted to be the regional A, B and C Sands seen in the historical Walyering wells and nearby Jurassic gas discoveries such as Gin Gin, Red Gully and Ocean Hill. Strike has taken core samples from the A Sand which will be used to verify the regional nature of the reservoir.

While drilling to total depth, additional gas sands were encountered with the well yet to observe a water contact. The W5 A Sand sits some 233m TVD ss higher than W1 and 145m TVD ss higher than W4, indicating the potential for a larger than expected gas column and corresponding resource.

Pressure data collected from the reservoir was measured at approximately 4,386psia with permeabilities of 274 mD. Gas samples have been measured in the laboratory to contain only 0.69% CO2 which is consistent with the better than pipeline-specification sweet gas seen in the historical Walyering production stream. The condensate gas ratio is measured to be lower than expected at around 2.84 bbls per mmscf, which is viewed as a positive due to the production stream supporting a lower development cost and faster to market profile.

Forward Plan

Strike is running in and will cement 5-1/2” casing in place before completing the well across the Cattamarra Coal Measures with a 2-7/8” tubing string. Post completion Strike will prepare the well for a production test in Q1/22 which will feed into an independent joint venture resource statement.

Managing Director & Chief Executive Officer, Stuart Nicholls said:
“The results of the Walyering-5 well have exceeded Strike’s pre-drill expectations with thicker and better-quality gas charged sands being encountered across several reservoirs. These results are another example of the excellent geoscience outcomes that the Strike team continue to deliver, and this result bodes well for ongoing success throughout the basin.

“The co-location of the Walyering gas field with transmission infrastructure, better than pipeline quality gas and position on freehold land, combines to make the potential for a very fast to market domestic gas development.

“Strike will now work with its partner Talon Energy to put together a plan for a fast and low-cost development before production testing the W5 well and having the resource independently certified.”

Walyering – EP447

The Walyering conventional gas discovery was made in the Cattamarra Coal Measures (at an approximate depth of 3,400m SS), a play that has been proven to support commercial production from the gas projects at Gin-Gin and Red Gully.

The permit covers 1,110 km² and was acquired in 2018. Since acquisition Strike has generated 90km² of 3D seismic over Walyering in late 2019 which has markedly improved Strike’s confidence in both Walyering and the Jurassic wet gas play. This high-resolution data indicates the presence of wet-gas accumulation up dip of the Walyering-4 well location.

Walyering is strategically advantaged in its location being situated between WA’s two major gas transmission lines and with gas that flowed from Walyering-1 only measuring 1% CO₂ and flowing at 13.5mmscf/d. Furthermore, major industrial gas users are located in the immediate area, who have known uses for both the gas and condensate streams locally. Both of the above translates into a potentially very low cost and fast paced development which would avoid the need for significant infrastructure.

KeyFacts Energy: Strike Energy Australia country profile