Strike Energy is gearing up to report its first operating profits from the Walyering gas field after finishing the quarter in a “unique position”, its chief executive says.
The John Poynton-chaired company today announced on the market results from the recent quarter, including finishing with a cash balance of about $143 million and $47 million of undrawn debt.
This takes the company’s total available funding position to $190 million.
The Walyering gas field received all construction approvals, with commissioning operations expected to start in the coming quarter followed by sales into the Parmelia gas pipeline, according to the quarterly report.
Strike is the operator and owner of a 55 per cent equity interest in the Walyering gas field, with Talon Energy the owner of the remaining 45 per cent.
Strike Energy managing director and chief executive Stuart Nicholls said the company ended the quarter in a unique position.
“The company is very well capitalised post the most recent round of Perth Basin consolidations and is positioned to capture a large portion of the increasingly attractive WA gas market via its recently announced gas acceleration strategy,” he said.
“Next quarter Strike should be reporting its first operating profits from the Walyering gas field and preparing for a high impact drilling campaign which could see the company emerge as the largest holder of reserves in the Perth Basin.”
The Walyering gas field is expected to kick off Strike's recently launched gas acceleration strategy, which aims to bring online production from four gas fields all by the end of 2025.
The other gas production targets include South Erregulla, West Erregulla and Ocean Hill.
Strike also announced an additional, but uncommitted, $80 million for a contingent instrument facility at Strike’s South Erregulla domestic gas development.
The company said it has completed initial engineering for a modular and expandable gas plant on its Mid West low carbon manufacturing precinct, with production through its South Erregulla field.
A production license, field management plan and primary environmental referral applications for production from South Erregulla have been submitted and commissioning expected to occur in late 2024.
Other highlights in the past quarter includes Strike earning $136 million after selling its stake in Warrego to Hancock in February, and poaching former Woodside Energy senior vice president Jill Hoffmann.
Ms Hoffmann will join Strike’s board as a non-executive director in May.
Strike said it has started engagement with new joint venture partner Hancock on the development of the West Erregulla gas field.
“The decision to accept Hancock’s offer and receive a substantial and certain funding injection provided clarity on the development pathway for the Greater Erregulla gas resources,” the company said in the quarterly report.
