Strike Energy’s (ASX:STX) Erregulla Deep-1: a new frontier for Perth basin gas

In a landscape where Australia’s energy sector is persistently evolving, Strike Energy’s (ASX:STX) recent triumph at the Erregulla Deep-1 well represents a groundbreaking advancement that could reshape the Perth Basin’s gas narrative.

The well, drilled to an unprecedented depth of 5,225 metres, has yielded significant discoveries, underscoring the potential of this underexplored region.

Key Highlights:

• Record-Breaking Depth: The Erregulla Deep-1 well is the deepest onshore well ever drilled in Australia, reaching a total depth of 5,225 metres.
• Major Discoveries: Two significant gas discoveries in the Kingia and High Cliff Sandstones with a combined 28 metres of net gas pay.
• High-Quality Reservoirs: Kingia Sandstone with 26 metres of net gas pay and 13% average porosity; High Cliff Sandstone with 2 metres of net gas pay and 11% average porosity.
• Lower CO2 Content: The gas samples from Erregulla Deep-1 exhibit materially lower CO2 content compared to previous wells in the region.

Stuart Nicholls, Managing Director of Strike Energy, remarked, “The discoveries at Erregulla Deep are higher quality than Strike anticipated prior to drilling, with reservoir quality, formation pressures and lower CO2 content all exceeding expectations relative to the West Erregulla wells.”

Compelling Discoveries

The Erregulla Deep-1 well has unveiled two noteworthy gas discoveries in the Kingia and High Cliff Sandstones, with net gas pay of 26 metres and 2 metres, respectively.

The average porosity readings—13% for Kingia and 11% for High Cliff—alongside impressive reservoir pressures, suggest a highly promising reservoir quality.

These discoveries not only enhance Strike’s position but also extend the Permian gas play further eastward and deeper than previously encountered.

With Strike holding a commanding 100% acreage in the surrounding EP503, 504, and 505 permits, the implications for future gas exploration and development are profound.

The success of Erregulla Deep-1 could potentially unlock a new frontier in Australia’s energy supply, particularly at a time when the demand for low-carbon energy sources is accelerating.

Lower Carbon Footprint

Moreover, the lower CO2 content in the gas samples, especially when compared to the West Erregulla wells, is a notable achievement.

In an era where carbon emissions are under scrutiny, this discovery positions Strike favourably in the market, potentially offering a cleaner alternative to other gas sources.

Cautious Optimism

While the results are promising, Nicholls tempered enthusiasm by noting that the well must undergo flow testing, which will be the definitive measure of its commercial viability.

“On a successful flow test, Erregulla Deep could add significantly to the overall developable resource in EP469,” Nicholls added, pointing to the potential for further resource reassessment pending the flow test outcomes.

The exploration’s success holds broader implications for the Perth Basin, as the deeper penetration into the Kingia-High Cliff Sandstones provides valuable data that could lead to the discovery of additional resources in adjacent areas.

With Strike planning to mobilise a well test spread immediately, the industry is watching closely as this could set the stage for future exploration campaigns in similar high-pressure, deep-seated plays.

Strike Energy’s bold move to drill the deepest onshore well in Australia reflects the company’s commitment to pushing the boundaries of conventional gas exploration.

As the world navigates towards a more sustainable energy future, discoveries like those at Erregulla Deep-1 not only reinforce the importance of natural gas as a transition fuel but also highlight the potential of regions like the Perth Basin to play a critical role in this global shift.

While the full potential of Erregulla Deep-1 is yet to be realised, the initial results are undeniably encouraging.

With further testing and evaluation, this well could very well mark the beginning of a new chapter in Australian gas exploration—a chapter where deeper, more challenging plays become the norm rather than the exception.

Please note the following valuable information before using this website. 

Independent Research 

Market Open Australia is intended to be used only for educational and informative purposes, and any information on this website should not be taken as investment advice or guidance. It is important to conduct your own research before making any investment decisions, which should be based on your own investment needs and personal circumstances. Any investment decisions based on information contained on this website should be taken in line with independent financial advice from a qualified professional or should be independently researched and verified.