New pipeline agreement for APA and Strike

The two companies have executed a new agreement enabling gas to be delivered from the Parmelia Gas Pipeline into the Dampier to Bunbury Natural Gas Pipeline.

A two-years gas transportation agreement was executed with APA Group to allow up to 10 terajoules (TJ)/day of sales gas to be delivered from the Parmelia Gas Pipeline into the Dampier to Bunbury Natural Gas Pipeline (DBNGP) expected from late 2024 upon completion of the construction and commissioning of the new inter-pipeline connection at Mondarra by APA Group.

This agreement will allow Strike Energy to access the much larger and liquid market connected to the (DBNGP) where 95 per cent of WA’s daily gas is sold and consumed.

Strike intends to run a marketing process for this additional volume in the coming months.

Strike successfully delivered 34 TJ from the Walyering gas field into the Western Australian domestic gas market on 6 February 2024 and has achieved instantaneous rates equivalent to 38 TJ/d, which demonstrates the unutilised capacity of the facility above its original nameplate.

In the coming quarter Strike will drill the Walyering-7 appraisal well, which on success may allow Strike to unlock this additional throughput on a permanent basis, expanding its market share on the PGP and using its GTA with APA to deliver volumes into the DBNGP.

Strike has completed an initial external review of the A-Sand production, which is tracking to its original 2P Reserves case.

Ongoing deliveries at production rates above firm contracted volumes remain subject to customer nominations and further gas marketing activities.

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