Strike Energy Farms Out West Oz Permit

Sydney-listed Strike Energy will farm out 45% stake in the Walyering prospects within EP447 in Western Australia to fellow Australian explorer Talon Petroleum, it said on July 20 in a statement.

Under an agreement they have signed, the two companies will form an unincorporated joint venture for the appraisal and development of Walyering. 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.

“Farming out Walyering is in line with Strike’s strategy of accelerating production of large volumes of domestic gas from its Perth Basin portfolio in order to capture additional market share during a period of expected supply shortage during the mid-part of the decade,” the company said.

Should the appraisal drilling lead to commercial development, then Strike expects this will be a catalyst for a material uplift in valuation of its 1,853 km² acreage position across the play.