Strike Closes West Oz Farm Out Deal
Sydney-listed Strike Energy has completed the farm-out of a 45% non-operated interest in the Walyering prospects in EP447 in Western Australia to Talon Petroleum in return for a A$6mn (US$4.3mn) carry on costs, it said on September 14. The initial agreement was inked in July this year.
Talon has paid a A$1mn transaction bond, which is to be applied towards Talon’s free carry obligations, Strike said. The deal also gives Talon a right of first refusal over EP495 which contains Ocean Hill gas discovery.
The transaction remains subject to ministerial approval, following which Strike and Talon will form a joint venture for EP447. The joint venture will then proceed to appraise and potentially develop the Walyering wet-gas discovery, Strike said.
Strike said it had completed the well design and identification of a proposed well location in preparation for the upcoming appraisal drilling next year. On completion of the farm-out, the working interests in Walyering will be Strike 55% and Talon 45%. Strike will remain operator of the permit and of the joint venture.
The Walyering permit covers 1,110 km2 and was acquired in 2018. Strike collected over 90km2 of 3D seismic data at the site in late 2019.