Page 11 - AsianOil Week 45

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Strike claims it has one of Australia’s largest onshore gas finds
PROJECTS & COMPANIES
AUSTRALIAN independent Strike Energy has said its block in the Perth Basin could hold one of the country’s largest ever conventional onshore gas discoveries.
The West Erregulla play, which lies in West- ern Australia’s Block EP 469, is estimated to contain a 2C contingent resource of 1.185tn cubic feet (33.56bn cubic metres), Strike said on November 11. Strike operates the block with a 50% stake, while Warrego Energy holds the remaining interest.
It noted that it had hired Igesi Consulting to assess the contingent resource of two of the block’s three formations – Kingia and High Cliff. Kingia is estimated to contain a 2C resource of 1.004 tcf (28.43 bcm), while High Cliff is esti- mated to hold 181bn cubic feet (5.13 bcm).
The company said the size of the resource booked following the successful drilling of the West Erregulla-2 well indicated a large contigu- ous structure. Strike added that was likely to be a “generational asset” that could produce some of Australia’s cheapest gas, given that additional
resources are expected from the Wagina sand- stone once further data analysis and sample col- lection have been completed.
Strike has completed the West Erregulla-2 well as a future producer and anticipates deliv- ering first production in the first half of 2022. It is currently preparing an appraisal drilling cam- paign for the second half of next year.
Strike’s managing director and CEO, Stuart Nicholls, said: “The size of the resource ena- bles the progression of multiple development options, with West Erregulla being a highly pro- ductive, recoverable gas asset which is adjacent to major gas transmission infrastructure. This resource and its location are the basis and foun- dation of Strike’s aspirations of being one of the lowest cost gas producers in Australia.”
The partners said in August that they had made a “staggering” gas find at Kingia, after West Erregulla-2 encountered a gross gas column of at least 97 metres in the formation at 4,753 metres. A lower 67-metre section was interpreted to have a net pay of 41 metres.™
Comet seeks environmental approval for Queensland block
PROJECTS & COMPANIES
AUSTRALIA junior Comet Ridge has begun work to secure environmental authority (EA) foracoal-bedmethane(CBM)blockinQueens- land, the company said on November 12.
The company was awarded the 450-square km Mahalo North block in late October, with the stipulation that any production be marketed only to domestic buyers. It expects to be awarded a formal authority to prospect (ATP) within three to four months. Comet added that it antici- pated starting drilling wells in the second quarter of next year following the award of the ATP.
Commenting on the block’s prospectivity, Comet noted that the initial development fair- way identified in the Mahalo Gas Project area could be traced into Mahalo North through the same coal reservoir. It added that 25 wells had been drilled in the Mahalo Gas Project, with most of the activity concentrated in the north, where depths are similar to Mahalo North.
“Development of the Mahalo Gas Project is initially targeted around the productive shallow coals in the north, which are currently mapped
to extend well into the new Mahalo North block and were confirmed by the Luton 2 well and also thehighnumberofcoalexplorationboreholes,” the company added.
Comet owns a 40% stake in the Mahalo JV Project Area, which is a subset area of the Mahalo Gas Project. Santos and Australian Pacific LNG (APLNG) own 30% each of the play as well as 50% each of the wider project.
Comet Ridge has divided the Mahalo North’s CBM fairway into two zones. The company intends to evaluate the zone around and south of Luton 2 immediately and expects to bring this on stream around the same time as or even before the Mahalo Gas Project. Commenting on Mahalo North’s export options, Comet said one possible route might be via the Mahalo Gas Project, which is only predicted to fill around three quarters of the 80 TJ (2.08mn cubic metres) per day modular processing plant’s capacity on start-up.
As the company moves forward with its development plans for Mahalo North, it has embarked upon a strategic review of its assets.™
Week 45 13•November•2019 w w w . N E W S B A S E . c o m P11