Strike Energy (ASX:STX) Reserves and Resources Review Update

Strike Energy Limited (Strike - ASX: STX) has completed a review of its Reserves and Resources at the Walyering gas field, with independent certifiers RISC Advisory certifying 57 PJe of 2P Reserves and 2C Resources. The Walyering-7 tie-in is targeted for completion by the end of September, with construction currently on schedule and on budget. Over the past year, Strike has produced approximately 7 PJe from the Walyering gas field, generating $64 million in gross sales revenue and achieving payback in May of this year.

Executive Commentary on Reserves and Resources Review

The Walyering gas field has performed within the original range of expectations, with a downward revision to 2P Reserves driven primarily by changes in the assumptions of gas in place. The effect of these reviews is a reduction in 2P Reserves from the Walyering 5 & 6 wells, partly offset by additions from Walyering-7. Importantly, RISC do not observe any formation water production from the primary gas production zones. Strike has approximately 32 PJ of contracted gas that remains to be supplied, and which can be satisfied from the revised 2P Reserves. As planned, Strike has identified compression facilities for procurement and installation, with timing of installation in mid-CY25 in line with the production modelling.

Summary of Reserves and Resources Update and Future Plans

Strike Energy's Reserves and Resources review at the Walyering gas field has resulted in the certification of 57 PJe of 2P Reserves and 2C Resources by independent certifiers RISC Advisory. The Walyering-7 tie-in is progressing well and is targeted for completion by the end of September, with construction currently on schedule and on budget. Strike also intends to drill the Walyering East structure by the end of the year, which is expected to coincide with the estimated February 2025 completion of the APA Mondarra crossing, providing access into the Dampier to Bunbury Natural Gas Pipeline. The company has identified compression facilities for procurement and installation, aligning with the production modelling. The downward revision to 2P Reserves from the Walyering 5 & 6 wells has been partly offset by additions from Walyering-7, and the company remains focused on meeting its contracted gas supply and exploring additional Reserves and Resources at the Walyering gas field.