Strike Energy (ASX: $STX) re-certifies South Erregulla reserves

Strike Energy Limited (Strike - ASX: STX) has completed the re-certification of Reserves and Resources at South Erregulla with independent certifiers Netherland Sewell and Associates. The re-certification resulted in the certification of 82 PJ of 2P plus 2C Reserves and Contingent Resources in the Eastern compartment of the South Erregulla field, with the reclassification of the Western side of the field to Prospective Resource.

Executive commentary on South Erregulla reserves re-certification

The net effect of the appraisal results is a reduction in volume and reclassification of part of the Reserves and Resources for the field. The updated South Erregulla 1P Reserves support a greater than 25 year project life for the proposed standalone South Erregulla Peaking Power Plant. The Reserves were proven through the existing successful high-rate SE-1 well test in 2022. The South Erregulla 2P Reserves and 2C Resources now total approximately 82 PJ (100% to Strike) which is made up of 45 PJ of 2P Reserves in the Kingia Sandstone and 37 PJ of 2C Contingent Resources in the Wagina Sandstone.

Summary of South Erregulla reserves re-certification and outlook

The re-certification of Reserves and Resources at South Erregulla has provided valuable insights into the potential of the field. The updated Reserves support a long project life for the proposed standalone South Erregulla Peaking Power Plant. Additionally, the Contingent Resources in the western side of the field have been remapped and recategorized as Prospective Resources, indicating further development potential. However, to convert the Contingent Resources to Reserves, Strike will need to drill and bring online a dedicated Wagina well to demonstrate rates and volumes sufficient to sustain economic viability. The company's focus on the development of the South Erregulla field and the proposed Power Project demonstrates its commitment to maximizing the potential of its assets and contributing to the energy sector.