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West, owing to the completion of a AUD9.5mn The development push comes a month
($6.75mn) private placement as well as the after State Gas revealed that the Nyanda-4
launch of a share purchase plan. well had delivered an “exponential” increase
State said Rolleston West contained highly in CBM production. State Gas executive
prospective targets for both CBM and known chairman Richard Cottee said at the time
conventional gas within the permit area, and the that the production jump had followed the
permit was “not restricted by domestic gas res- installation of custom-built pumping equip-
ervation requirements”. ment from Canada.™

Strike off to rocky start during

West Erregulla appraisal drilling

PROJECTS & AUSTRALIAN independent Strike Energy has
COMPANIES revealed that the first well in its three-well appraisal
of the onshore West Erregulla natural gas field in
Western Australia has run into difficulty.
Strike said on October 14 that it had plugged
the West Erregulla 3 (WE-3) well and would
sidetrack it before resuming drilling. Problems
began after the company landed and cemented
the 20-inch (508-mm) casing in the surface
hole to the final section depth of 1,210 metres,
at which point it commenced drilling the 17.5-
inch (445-mm) first intermediate section.
However, the rate of penetration fell signifi-
cantly during drilling operations and Strike said
it had found that the bottom hole assembly had
parted just above the mud motor and the drill
bit and motor had remained in hole. This meant
that finishing operations were unsuccessful and
Strike said it was running a new drilling assem-
bly in hole to complete the first intermediate sec-
tion before running and cementing 13.38-inch
(340-mm) casing.
The company noted, however, that it was
confident that it could rectify the situation and “institutional and sophisticated investors”, would
resume normal drilling operations. go towards drilling WE-4 and WE-5, a 3D seis-
WE-3 is the first of three appraisal wells mic survey over the remainder of EP469 and for
planned for the field, which is located in EP469, general working capital.
with each to be drilled to a depth of around Strike and Warrego announced on Octo-
5,000 metres. WE-3 aims to test the continua- ber 8 that they had signed a binding heads of
tion of the commercial gas accumulation in the agreement (HoA) “to align” on the field’s devel-
northern fault block, while WE-4 and WE-5 will opment. The partners said the HoA provided a
appraise the reservoir distribution in the central path for the field’s first phase of development,
fault block. including gas processing and plant capacity,
Strike operates EP469 with a 50% interest, gas balancing and sales, as well as optimisation
while fellow Australian independent Warrego of critical activities such as a final investment
Energy holds the remaining 50% stake. decision (FID) and the current appraisal drilling
On the same day Strike issued the West campaign.
Erregulla update, Warrego announced that it West Erregulla’s first phase of development is
had raised A$32mn ($22.7mn) with which to subject to an FID being reached by March 31,
fund its share of development costs for the field. 2021, completion of definitive documentation
The company said the funds, which were for the gas processing arrangements as well as
raised via a two-tranche share placement to limited due diligence.™

Week 41 15•October•2020 www. NEWSBASE .com P11