Strike Energy Ltd (ASX:STX, OTC:STKKF, FRA:RJN) has increased 2P reserves at its West Erregulla gas field in Western Australia by 19% to 251 petajoules (PJ) net to the company, following updated subsurface modelling incorporating new drilling and seismic data.
The reserve upgrade reflects an increase of 40PJ from the previous 2022 estimate of 211PJ and is based on revised geological interpretation integrating results from the Erregulla Deep-1 well and the Natta 3D seismic survey.
West Erregulla Reserves & Resources.
The updated model has improved Strike's understanding of reservoir distribution and structural definition across the field, with the increase largely attributed to an extension of the West Erregulla field footprint toward the northwest, which was not previously identified on earlier seismic data.
The revised estimate has been independently audited by oil and gas advisory firm Miller & Lents and relates to Strike’s 50% interest across production licences L25 and L26.
“These results reinforce the scale and quality of the West Erregulla resource and Strike’s strategic position within the northern Perth Basin. The 19% increase in 2P Reserves further highlights the strength of the Kingia reservoir and the significant role West Erregulla can play in Western Australia’s future energy mix," Strike’s managing director and CEO, Peter Stokes, said.
"At a time when Western Australia is facing the dual challenge of retiring coal-fired generation while maintaining reliable energy supply, projects such as West Erregulla represent an important new source of secure onshore gas that can support the State’s energy transition. Independent forecasts from AEMO continue to highlight the need for additional gas supply and firming capacity across the South West Interconnected System over the coming decades. Resources such as West Erregulla have the potential to contribute meaningfully to addressing these forecast shortfalls in both gas supply and dispatchable power generation.
"Strike continues to progress workstreams for the development of the West Erregulla field, with the project representing the cornerstone of Strike’s Erregulla portfolio. The Erregulla Deep structure and surrounding prospects provide additional near-field growth potential as Strike continues to evaluate the broader prospectivity of L25 and L26.”
Updated model expands field footprint and development potential
The increase in reserves reinforces West Erregulla as the core development asset within Strike’s Erregulla portfolio, underpinning future development planning in the northern Perth Basin.
In addition to the reserve uplift, the updated interpretation has also identified additional prospective resources within the Kingia sandstone across the licence areas, further highlighting the broader growth potential of the project.
Strike also reported a partial reclassification of prospective resources at Erregulla Deep into contingent resources, following integration of well data and seismic interpretation, supporting increased confidence in parts of the system.
Across the broader update, total 2P reserves now sit at 251PJ, with 1P reserves of 179PJ and 3P reserves of 357PJ, reflecting the scale of the field and its potential development profile.
The company noted that approximately 32% of total resources have been converted into reserves, leaving scope for further increases through additional drilling, appraisal and technical studies.
Further appraisal work will be required to convert contingent resources into reserves, particularly within the High Cliff reservoir and the Erregulla Deep structure.
The updated resource base supports Strike’s ongoing development planning, with West Erregulla positioned as a key future gas supply source in Western Australia as the state transitions away from coal-fired generation.
The company continues to progress development workstreams across the project, with the reserve increase providing greater confidence in the scale, longevity and strategic importance of the West Erregulla gas field.