Oz West Erregulla Project Gets Government Support

Strike Energy May 28 said its West Erregulla gas project has been awarded lead agency status in Western Australia (WA) by the premier and minister for state development, jobs and trade. Lead agency status is awarded to resource and infrastructure projects where the proposed investment is significant or of strategic importance to WA.

Under the lead agency framework, the department of jobs, tourism, science and innovation will provide the West Erregulla project with case-management for government interfaces, and the coordination of approvals across a range of government departments, the company said.

“This will assist Strike in navigating the approvals processes, expediting timeframes and ensuring efficient communication between government agencies. Ultimately, this assistance will support the West Erregulla gas project to remain on track to deliver its critical domestic gas volumes into WA within the timeframe required,” Strike said.

The West Erregulla gas project including the regional resources of the Greater Erregulla area may contribute up to 20% of WA’s domestic gas supply, Strike said. “Due to the field’s size, quality and proximity to the market (300km to the North of Perth), West Erregulla is likely to be one of the lowest cost sources of large-scale available gas to feed the WA market,” it added.

Strike is partnered at West Erregulla with fellow Australian explorer Warrego Energy in a 50:50 equity split. Earlier this week, Warrego said it will raise A$15mn (US$9.8mn) via a two-tranche placement to fund the West Erregulla drilling programme.