The FID was taken after an independent certification of a 54.2PJ 2P gas reserve for the onshore gas field
First gas sales from the Walyering field are targeted in the first quarter of 2023. (Credit: Anita starzycka from Pixabay)
Strike Energy and Talon Energy have agreed to move ahead with the commercial development of the onshore Walyering gas field located in the Perth Basin, Western Australia.
According to Strike Energy, the capital expenditure (CapEx) estimated for the Walyering gas project in the EP447 permit is around A$14.4m ($10.2m).
The company is the operator of EP447 with a 55% stake, while Talon Energy holds the remaining 45% stake.
First gas sales from the Walyering field are targeted in Q1 2023. Prior to that, the gas offtake contracts are anticipated to be finalised in the fourth quarter of this year.
Strike Energy and Talon Energy took the final investment decision (FID) after an independent certification of a 54.2 petajoules (PJ) 2P gas reserve for the Walyering gas field.
Strike Energy CEO and managing director Stuart Nicholls said: “With this development decision at Walyering only 9 months since the discovery, Strike will complete its transition into production operations by the end of CY22.
“Walyering is estimated to produce between A$50-A$75m pa in gross cashflows based on the current estimated range of product pricing and production rates.”
The EP447 partners made the initial gas discovery through the drilling of the Walyering-5 appraisal well in December 2021. It was followed by a secondary gas discovery with the Walyering-6 appraisal well in May 2022.
The Walyering gas field will be developed by completing the Walyering 5 and 6 wells.
Talon Energy said that the produced gas will be processed on-site using a facility designed for processing 33 terajoules per day (TJ/d) of gas and separate between 150-300 barrels per day (bbls/d) of condensate.
The condensate will be diverted to onsite storage to ensure its availability for delivery to point of sale through transportation by truck from the Brand Highway.
Talon Energy CEO and managing director Colby Hauser said: “With this investment decision, Talon makes a rare transition from explorer to producer.
“The project showcases a quick, low-cost development which will see Talon generating significant cashflows from early 2023 in an environment where access to capital is increasingly difficult.”