Strike Energy Limited granted Production Licence for West Erregulla gas field

$STX Strike Energy Limited granted Production Licence for West Erregulla gas field

Strike Energy Limited (ASX: STX) has been granted Production Licence L25 for the West Erregulla gas field, a significant milestone that further de-risks the development of this critical asset. Located in the north Perth Basin, the West Erregulla gas field, co-owned by Strike and Warrego Energy, holds an estimated 452 PJ of 2P Reserves plus 2C and Contingent Resources. The project is moving towards a Final Investment Decision (FID) later this year, positioning it as a major new source of gas for Western Australia, with production expected to continue well into the 2040s.

Production Licence L25: A Milestone Achievement

Strike Energy Limited, as the operator of the EP469 Joint Venture, has successfully secured Production Licence L25 from the Department of Energy, Mines, Industry, Regulation and Safety. This licence covers the West Erregulla gas field, marking a pivotal moment in the project's development and bringing it closer to full-scale production. The licence grant ... follows years of exploration, appraisal, and engineering work from 2019 to 2023, underscoring the project's robust foundation.

West Erregulla Gas Field: A Strategic Asset

The West Erregulla gas field is situated in the resource-rich north Perth Basin and boasts a substantial 452 PJ of 2P Reserves plus 2C and Contingent Resources. Discovered and appraised over a four-year period, the field is poised to become a key player in Western Australia's energy landscape. Strike Energy, holding a 50% working interest in the joint venture, is leading the charge towards a Final Investment Decision on the gas development, which features an 87 TJ/d nameplate capacity.

Strategic Partnerships and Environmental Approvals

Strike Energy is collaborating with Warrego Energy, which holds the remaining 50% non-operated interest, and Australian Gas Infrastructure Group (AGIG), the midstream partner responsible for gas processing and export pipelines. The project's progress is further supported by the Environmental Protection Authority (EPA) approvals for both upstream and midstream developments, providing additional confidence in the project's viability.

A Step Forward in the Gas Acceleration Strategy

Strike Energy's Managing Director and CEO, Stuart Nicholls, emphasized the importance of the Production Licence L25 in de-risking the development of West Erregulla, which he described as the company's flagship asset. With this licence in hand, West Erregulla is set to become a crucial source of new gas in Western Australia, with production expected to extend well into the 2040s. Nicholls highlighted that Strike has now secured primary environmental approvals and production tenure across three of the four gas fields that comprise its broader Gas Acceleration Strategy.

Looking Ahead: Final Investment Decision on the Horizon

With the grant of Production Licence L25, Strike Energy and its partners are now focused on finalizing the investment decision for the West Erregulla gas development. The forthcoming FID will determine the project's path forward, including its capacity to meet the growing energy demands of Western Australia. As Strike Energy continues to advance its Gas Acceleration Strategy, the West Erregulla gas field stands out as a cornerstone project with the potential to significantly impact the region's energy supply for decades to come.

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