On 20 July 2020 Strike Energy Ltd reported that it has agreed terms with Talon Petroleum Limited to farm out 45% non-operated interest in the Walyering exploration permit EP 447, located in the Perth Basin. The agreement includes the formation of an unincorporated joint venture for the appraisal and future development of the Walyering field. Talon will receive interest in the license in return for a USD 6 million free carry in the upcoming appraisal well. The farm out completion remains subject to the execution of definitive transaction documentation and ministerial approval.  Talon will pay the first USD 6 million of the Walyering appraisal well, up to a total gross USD 9 million spend, with all costs post this to be incurred on a pro-rata basis. The company has also issued a five year right of first refusal if Strike commence the marketing of Ocean Hill for farm out.   Farming out the Walyering field will accelerate the appraisal drilling into CY2021, with Strike adding the Walyering well into its Perth Basin drilling programme, which will likely realise a potential cost saving.   The Walyering field was discovered in 1971 and produced a total of 261 MMcf of gas from the Lower Jurassic Cattamarra Coal Measures over a four-month period before the reservoir was considered depleted and production ceased. Conventional sandstone reservoirs of Jurassic age, similar to the Gingin West and Red Gully gas and condensate trend, have been identified in the permit area over a structure area of approximately 10 sq km. Itâs considered that original drilling failed to target the highs due to poorly positioned 2D seismic data. The field is located in close proximity to existing infrastructure and existing industrial gas users. Strike reported that the farm out is inline with the company's strategy of accelerating production of large volumes of domestic gas in its Perth Basin assets, where a supply shortage is predicted in the mid to late 2020's. Successful appraisal drilling will prove up a commercial development, which may result in a material uplift in valuation of Strike's 1,853 sq km acreage across the Jurassic West Gas Play in the Cattamarra sequence.  EP 447 covers an area of 1,108.21 sq km and is scheduled to expire on 22 February 2022. Current interest in the permit is Strike North West Pty Ltd (50% interest and operatorship) and Strike South Pty Ltd (50% interest). Once the farm in is complete, Strike will hold 55% interest and operatorship, and Talon Petroleum will hold 45% interest.
(Perth b.), EP 447 block, Strike has agreed to farmout a 45% non-operated interest in so far wholly-owned EP 447, 1,108 sq km onshore Perth Basin, to Talon Petroleum.