Strike Energy

Strike Energy’s FY25 first half financial #results confirmed we generated $35.8M in sales #revenue from 4.66 PJe of #gas and #condensate #production, at a low production cost of $0.63 per gigajoule. Importantly, during the first half Strike was pleased to announce the FID for our exciting South Erregulla 85 MW fully integrated peaking gas #power station, backed by Reserve Capacity Credits and Network Access from the Australian Energy Market Operator (AEMO). Further, we identified a significant gas #discovery at Erregulla Deep-1 in EP469, with 3D seismic acquisition underway to support future independently certified resource bookings. DEMIRS issued Production Licence L25 to the West Erregulla JV and we remain in a strong financial position with A$33.1M in cash and cash equivalents, supported by a credit approval of A$162M committed financing facility received after the reporting period. Strike Energy Acting CEO Jill Hoffmann said the strong operational performance at Walyering continues to generate cashflows that support the advancement of Strike’s Gas Acceleration Strategy. "Taking FID at the South Erregulla 85 MW peaking gas power station is a major milestone and reinforces our commitment to supporting Western Australia’s energy transition," she said. "The project has now moved into execution phase, backed by a financing package from Macquarie Bank. Additionally, exploration and appraisal activities have yielded strong results, with the successful flow testing at Erregulla Deep confirming a significant gas discovery and the drilling of Walyering East-1 identifying a further potential gas discovery, subject to production testing.” You can read the full announcement here: https://lnkd.in/gufsvXsu

🌏 Exploration During the Transition: Why High-Impact Discoveries Matter As the world navigates the complexities of the energy transition, the role of exploration is evolving. At Strike, we embrace the challenge of balancing energy needs with environmental and economic sustainability. A recent Horizons paper released by Wood Mackenzie, No Country for Old Fields, highlights the enduring importance of high-impact oil and gas exploration in today's energy landscape. Key takeaways include: 🔍 Advantaged Resources: Exploration remains the most economical way to discover low-cost, lower-emission resources, critical for displacing higher-carbon alternatives like coal. 💡 Innovation & Sustainability: Modern exploration leverages advanced technologies to lower emissions. New fields average 40% less carbon intensity than older fields. ⚡ Economic Value: Exploration has created over $160 billion in net value since 2015, proving its ability to deliver strong returns even amid uncertainty. At Strike, we are uniquely positioned to deliver value by responsibly unlocking the potential of Western Australia’s natural resources. Our strategic focus on natural gas and electricity from gas-fired power not only supports the region's energy security but also aligns with global decarbonisation goals. By prioritising low-cost, lower-emission resources, we are driving sustainable growth in a way that positions us as a compelling choice for investors seeking returns in the evolving energy landscape. 📖 You can access the article here: https://lnkd.in/egjiCa-n

We’re pleased to end the year on a high note, with a potential gas discovery at the Walyering East-1 exploration well. Logging and evaluation of the well has been completed with independent petrophysical assessment indicating a potential gas discovery in the Cattamarra Formation, subject to retrieving gas samples. The Walyering East-1 well is located in Exploration Permit EP447 (100% net to Strike) in the Perth Basin and approximately 5 km to the North-East of the producing Walyering gas field. Post reaching total depth, we logged and evaluated the primary objectives of the A to C Sands within the Cattamarra Formation. These zones were observed as either being insufficiently hydrocarbon saturated or thinned out to warrant completion and additional testing. The upper D-Sands were measured as good quality and gas charged. As a result, Strike decided to deepen the well an additional 87m down to 3,858m MD (measured depth) where additional good quality gas charged reservoir was observed throughout the lower D-Sands, which was then logged. Independent petrophysical assessment indicates at least 13.4m of net gas pay in two distinctive blocks from a 42.7m gross interval with maximum porosities of 16% and an average of 12% and reservoir pressures of 4,953 psi, which also indicates a gas gradient. Hydrocarbon samples could not be obtained due to tool failures, configurations and drilling conditions. Production testing has the potential to meaningfully upgrade the net pay in these zones, so we’ll continue to work on that in the New Year. For more detail please read our ASX announcement here: https://lnkd.in/geaRH5gK

Today the Australian Energy Market Operator (AEMO) released the 2024 WA Gas Statement of Opportunities (WA GSOO) which highlights that gas remains a cornerstone of energy reliability, particularly during our transition to a cleaner energy future, as it supports industrial growth, renewable energy integration, and household needs. Key insights from the 2024 WA GSOO: 💡 The market remains finely balanced, with surplus supply expected through 2027, bolstered by key LNG projects like Scarborough and Wheatstone. 💡 From 2028 onwards, demand is forecast to exceed supply, driven by industrial growth, major new projects, and the retirement of coal-fired generation. 💡 Gas-powered generation (GPG) will play an increasingly seasonal and strategic role, firming renewables and maintaining grid stability. At Strike, we are proud to play an active role in addressing these challenges and shaping WA’s energy future. As highlighted in AEMO's 10 year projection, the West Erregulla gas project, forecast to commence in 2027, will be pivotal in delivering essential new domestic gas supply to help meet the growing demand and support the state’s energy reliability. Additionally, our South Erregulla peaking gas power generation project will deliver essential flexibility to the South West Interconnected System (SWIS), ensuring stability during peak electricity demand and renewable variability. 📖 To explore the full report and insights, check out the WA GSOO here: https://lnkd.in/gdWu5yeU

We are back in the field today, with the spud of the Walyering East-1 exploration well. The well is located in Exploration Permit EP447 (100% net to Strike) in the Perth Basin and approximately 5 km to the North-East of the producing Walyering #gas field. The drilling program is targeting the A to D Sands within the Cattamarra Formation. The Walyering East structure, which sits within the existing 3D seismic dataset, has an attractive structural setting similar to that of the successful producing wells in the Walyering gas field. The well is targeting Jurassic aged conventional sandstone reservoirs within a 3-way dip fault closure. Here’s our ASX announcement if you want to read more about it: https://bit.ly/41gXX0E

Strike Energy is delivering reliable, sustainable and lower-carbon energy solutions to power our State’s future. Our 2024 Sustainability Report, out today, shares our sustainability performance over the past year, and our goals for the future. Key highlights include:   🥬 >$8.5m spent with local WA suppliers 🥬 2,060 tonnes of CO2-e emissions avoided 🥬 More than $45,000 injected into the community 🥬 Industry leader in gender diversity and inclusion, with an overall workforce that is 39% female 🥬 The fully integrated development of our South Erregulla gas reserves via a gas fired peaking power station to complement WA's growing use of renewables You can read the full report here: https://bit.ly/4ePnoK3 #sustainability #energy #gas #westernaustralia

An exciting day for Strike and a transformative one for WA’s energy transition as we take a financial investment decision on the South Erregulla integrated peaking gas power station development.   This development is designed to deliver reliable power when it’s needed most into the South West Interconnected System, balancing power supply as the state cuts its reliance on coal and generates more renewable energy.   The cost to complete and commission the Project is estimated at $137m and will be funded by Strike’s recently announced and increased $217 million financing package with Macquarie Bank Limited, and the free cash flow generation from Strike’s producing Walyering gas project.   Strike’s CEO & Managing Director Stuart Nicholls said: “Today’s development decision marks the second leg in Strike’s Perth Basin Gas Acceleration Strategy and the beginning of a new and highly attractive integration into peaking power. "The integration of South Erregulla’s gas Reserves into peaking gas power generation takes advantage of the metro electricity transmission infrastructure right next to the gas field, and the incremental value that integrated gas to power projects can generate from short term power prices coinciding with lower renewable generation.”   Read more in our ASX announcement here: https://bit.ly/498Zc3U   #energy #FID #gas #power #decarbonisation #westernaustralia

Could the Mid West's mix of solar, wind and gas be a low cost, low carbon solution for energy hungry data centres? We think so, and we're not the only ones, according to The Australian Financial Review. “Data centres need to work during the night when there’s no sun, and the batteries don’t last long enough. So I think having that energy mix would be quite interesting,” says David Yuile, a key figure in digital infrastructure for two decades and managing director of Lanrik Partners. Federal Resources Minister Madeleine King, who toured our Walyering facility this week, also sees the potential. “This is certainly worth pursuing, no doubt about it. When you have affordable and accessible supply of energy sources like renewable, which can be backed up by gas, that attracts industries of all sorts.” Strike's landholding in the MidWest sits in the heart of our Perth Basin #gas resources, and is in a great position to integrate with the region's wind and solar energy resources. You can read more in the AFR's article here: https://bit.ly/3CrX4bo #AI #bigdata #datacentres #energy

Strike Energy was delighted to welcome the Honourable Madeleine King, Minister for Resources, to our Walyering gas processing facility today. Walyering is a pioneering achievement in Australian energy — brought online within 22 months of discovery, it stands as the nation’s first gas plant fully powered by solar and battery technology. With its unique capability to deliver low CO₂ natural gas, Walyering enables some of the lowest cost and lowest carbon-intensive gas supply to the WA domestic market. During the visit, we also shared insights into our upcoming project at South Erregulla — proposed as a fully integrated peaking gas power station. By providing a highly flexible, lower carbon-intensive electricity source when compared with coal, this development is designed to complement the expanding renewable penetration and support WA’s transition away from coal-fired power by the end of the decade. Strike is proud to align with the Government’s Future Gas Strategy and to partner in driving WA’s sustainable energy future. We look forward to continued collaboration with government to innovate and lead in a lower-carbon energy landscape.

We're excited to be back at Macquarie's WA Forum to talk about our pre-FID projects, the strength of the WA gas market, and the energy M&A hotspot that is the Perth Basin. You can see our presentation here: https://lnkd.in/gwjbV79i