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The EP447 joint venture of Talon Energy Ltd and Strike Energy Ltd has started sales of gas from West Australia’s Walyering gas field.
A gross total of approximately 52 terajoules (TJ) of gas was sold at the start-up of the Walyering field. The field started exports of sales gas into the Parmelia Gas Pipeline under its long-term gas supply agreement with Santos WA Energy Limited for the supply of 36.5 petajoules over a period of five years on a firm, take-or-pay basis at 20 TJ per day with arrangements for the supply of additional gas on an “as available basis”, Talon said in a news release Monday.
The Walyering development is operated by Strike, which holds a 55 percent interest, while Talon holds a 45 percent interest.
Walyering’s started the first offloading of condensate to its point of sale at Port Bonython on Oct. 5. The field’s condensate production has been within the forecast rates of around 200 barrels per day since firm gas supply started, Talon said.
Talon said the joint venture will begin ramping up the field towards its nameplate capacity of 33 TJ per day in the coming quarter, “now that stabilized rates have been achieved for the firm contracted production”, adding that achievement of the target is “subject to various conditions including market dynamics and facility/upstream performance”.
The final cost of the development, including the well completions, facility construction, and commissioning costs, was $19.3 million (AUD 30 million) due to the extended construction time, higher labor rates, and additional manpower required against forecasts. Strike expects a return on investment of the construction cost from gas and condensate sales in approximately two quarters, according to the release.
The Walyering field is independently certified as having proved and probable (2P) Reserves of 56 petajoules equivalent (PJe) and a further 33 PJe of 2C Contingent Resources in the western compartment of the field, where Talon has recently agreed to drill the Walyering-7 well in the first quarter of 2024, targeting to mature the resources into reserves, the company said.
According to the Strike website, the Walyering project includes a production facility of up to 33 TJ per day of gas and 250 barrels per day of condensate following the successful appraisal of the field via the Walyering 5 and 6 wells, which delineated a gross 54 PJ of 2P Reserves and gross 32 PJ of 2C Contingent Resources plus 0.8 million barrels of oil equivalent of associated condensates.
The facility, which will be the closest source of gas to the major Southwest gas market, will be powered purely by solar and battery storage, enabling Walyering to have an emissions intensity that is more than 10 times less than most current domestic West Australian gas supplies, Strike said.
SE2 Well Appraisal
Meanwhile, Strike announced the successful appraisal of its SE2 well at the company’s 100 percent owned South Erregulla gas field which sits within production license L24. Logging and petrophysical analysis across the primary reservoir indicates a conventional net gas pay of 52.5 feet (16 meters), Strike said in a separate news release.
“The SE2 well confirms the presence of gas-filled reservoir in the Kingia on the southwestern flank of the field. This data, along with the future SE3 results, will form the basis for an independent review and potential conversion of Contingent Resources in L24 to Reserves”, Strike said.
To contact the author, email rocky.teodoro@rigzone.com
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