Strike Energy Ltd (ASX:STX) has received all regulatory approvals required to drill the Walyering West-1 exploration well in Production Licence L 23 (100% net to Strike) in the Perth Basin, with well pad construction now underway.
The company expects Walyering West-1 to spud by mid-April 2026.
Walyering West-1 is about 2 kilometres west of the producing Walyering-5 gas well and is designed to test a gross 2U prospective resource of 46 PJ in the A to D Sands of the Cattamarra Formation. If successful, Strike intends to tie the well into the Walyering Gas Processing Facility around 3 kilometres to the northeast.
Gas supply strategy and upside from success
Strike said that as at January 31, 2026, it had about 19.6 PJ of gas remaining to be supplied under its firm gas supply agreements. Following the expiry of its Alinta Energy contract on December 31, 2025, the company reduced Walyering production to about 10 TJ/day and has been meeting the balance of its firm obligations through third-party gas purchases, which it plans to continue while market conditions remain supportive and pending the outcome of Walyering West-1.
A successful result at Walyering West-1 could support a return to higher sustained production rates from the Walyering field and potentially open additional gas marketing opportunities.