Mobilisation of the Ensign 970 to South Erregulla-1 (SE1) complete

South Erregulla

Location of South Erregulla-1. (Credit: Strike Energy Limited)

Strike Energy Limited (Strike – ASX: STX) provides an update on the drilling operations at the company’s 100% owned South Erregulla target in EP503.

Mobilisation of the Ensign 970 drilling rig has been completed and the rig is ready to commence drilling operations at the SE1 well.

Minor delays have been encountered to the spud of the well whilst Strike and Ensign mobilised the required personnel into quarantine prior to border closures in Western Australia at the end of 2021. These staff on clearance are expected to commence full duties and spud SE1 towards the end of this week.

Additional preparatory activities for spud will be carried out in lead up to commencement of full operations in order to ensure a timely execution of the proposed drilling program.

About South Erregulla-1

South Erregulla is located in the 100% Strike owned EP503 which adjoins EP469 where Strike as operator has made a large, high quality conventional gas discovery at West Erregulla. SE1 lies less than 5km to the South of the nearest successful West Erregulla intersection.

South Erregulla has significant resource potential with a high chance of success due to the strong data control over the area (wells and seismic), consistent regional geological outcomes in the Kingia Sandsrtones and recent identification of updip connectivity.

Through seismic interpretation (with good well control) of the 3D seismic data over EP469 and EP320 in combination with the recently acquired Maior 2D seismic and reprocessed legacy 2D lines in EP503, Strike has interpretated a major structural high to the South of West Erregulla. Numerous drilling results at West Erregulla, Waitsia, Beharra, Lockyer and Irwin correlate to Strike’s geophysical model which supports the presence of gas charged porous sands in the Kingia Sandstone at South Erregulla.

Structural mapping (which has recently been corroborated by Netherland Sewell and Associates Inc. through their West Erregulla work), shows the Greater Erregulla structure rising to the South where the South Erregulla target has been identified. This interpretation suggests that South Erregulla is connected and updip of West Erregulla (a known conventional gas field) meaning a similar gas accumulation is likely to be encountered.

The primary objective of SE1 (and any subsequent appraisal wells in South Erregulla) is to delineate approximately 350 PJ of high confidence resource in order to secure the gas requirements for Project Haber, Strike’s proposed Geraldton based 1.4mtpa urea fertiliser manufacturing facility. On confirmation of success at SE1, Strike will look to sanction additional detailed engineering (FEED), finalise the urea offtake process, and progress the equity/debt processes for Project Haber.

Source: Company Press Release