Strike gets state government's VIP status

STATE energy darling Strike Energy is celebrating this morning, as the Western Australian government awarded its West Erregulla development Lead Agency Status, to speed up the project’s development and approval processes.
Strike gets state government's VIP status Strike gets state government's VIP status Strike gets state government's VIP status Strike gets state government's VIP status Strike gets state government's VIP status

Lead Agency Status to speed up WE approval process

Mark Tilly

Journalist

The status is awarded to major resource and infrastructure projects where the proposed investment is significant or of strategic importance to the state. 

Strike told the market the government's Department of Jobs, Tourism, Science and Innovation will provide the Perth Basin project with direct interface with government and the coordination of approvals across a range of departments.

Strike said this will assist the company in navigating and speed up the project's approval process and get gas to market by 2022. 

The joint venture Strike shares with Warrego Energy 50-50 is on track to drill two wells in the second half of  this year and plans to make a decision on a third appraisal well, West Erregulla-5, by November.

Strike drilled West Erregulla-2 last year reaching a total vertical depth of over 5000m and hitting gas across all three targets.

Strike believes the project may be able to contribute up to 20% of WA's domestic supply, and due to the size, quality and location of the field is likely to be one of the lowest-cost sources of large-scale available gas to feed the WA market. 

The premier's office could not be reached for comment. 

"The Lead Agency Status awarded from the Premier is the recognition of the important role that the Perth Basin will play in the state's energy security," managing director Stuart Nicholls said. 

"This framework will help Strike meet the permitting and approvals timelines required to deliver state under Strike's aspired schedule." 

Nicholls noted gas is an important driver of job and revenue creation for the state, previously estimating phase one's construction period could create 100 jobs. 

He also touted the project's greener credentials. 

"Gas is an enabler for a rapid reduction in the carbon intensity of our energy system by displacing coal and diesel fired electricity generation which remains widespread throughout the state," he said. 

Last week, Strike signed a $200 million deal with AGIG to build a 50 terajoule per day gas processing plant under a build, own, operate deal. 

The plant will process gas from Strike's phase 1 development of West Erregulla. 

A raw gas trunkline will connect the field to a nearby facility which will process it to sales specification before sending it into the state's transmission network.

Strike's shares have fully recovered from the hit it took in March following the COVID-19 pandemic and the oil price crash, hitting a low of 8.6 cents.

This morning it was trading up 5% at 21 cents. 

 

 

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