Strike Energy has achieved a financial milestone and provided updates on its drilling operations at the Walyering gas field in Western Australia.
The Walyering gas field, which Strike wholly owns and operates, has reached payback on its total development capital spend of approximately $30 million.
This includes facility costs of about $24 million and well completions costing $6 million.
Since its launch eight months ago, the project has generated around $47 million in gross income, marking one of the fastest payback periods for a greenfield Australian oil and gas project.
According to Strike, the rapid payback highlights the high margin, low cost, and early payback nature of the Walyering gas field.
Strike also reported progress on the Walyering-7 (W7) well. Its drilling commenced 18 days ago, and the well has already reached its planned depth of 4035 metres, five days ahead of schedule. This sets a new time/depth record for Strike’s drilling performance in the Walyering gas field.
Strike said the W7 well passed through multiple sandstone reservoirs within the CCM and registered positive observations on both mud logs and logging while drilling tools.
Strike is now preparing to run a series of wireline logs and specialty tools to evaluate the results before moving to the next stage of completion.
The well was drilled directionally from a surface location near the Walyering gas processing facility into a fault compartment north-east of the producing Walyering-5 structure.
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