Strike Energy’s latest seismic surveys reveal promising exploration and appraisal opportunities at Ocean Hill and Kadathinni, reinforcing its dominant position in the Perth Basin gas market.
- Completion of Ocean Hill 3D seismic survey identifies multiple appraisal well locations
- Kadathinni 2D seismic survey indicates significant Jurassic and Permian prospectivity
- Ocean Hill appraisal program targeting three wells by Q4 2025
- Kadathinni exploration well planned for 2026 with substantial prospective resources
- Both permits 100% owned and operated by Strike Energy
Exploration Advances in the Perth Basin
Strike Energy Limited (ASX: STX) has delivered an encouraging exploration update from its Ocean Hill and Kadathinni prospects, situated in the prolific Perth Basin. The company’s recent seismic surveys have provided fresh insights that could significantly enhance its resource base and development pipeline in one of Australia’s most promising gas provinces.
Strike’s Ocean Hill 3D seismic survey, completed in April 2024 and processed through advanced seismic workflows, has revealed multiple attractive locations for exploration and appraisal wells. Notably, the 3D data suggests fewer large-scale faults and less compartmentalisation than earlier 2D interpretations, indicating a more continuous reservoir than previously thought. This re-evaluation points to potential material upside beyond the contingent resources certified in 2022, with Strike planning an appraisal program of three wells aimed to be drill-ready by the end of 2025.
Kadathinni’s Dual-Level Prospectivity
Meanwhile, the Kadathinni 2D seismic survey, covering over 1000 square kilometres, has highlighted significant prospectivity at both the Permian Kingia Formation and the Jurassic Eneabba Formation. The latter is an emerging play in the basin, with encouraging hydrocarbon shows and minor oil recoveries in nearby wells. Strike’s internal estimates suggest substantial prospective gas volumes, with a risked chance of discovery and development factored in. The company aims to mature the Tathra-1 exploration well to drill-ready status by 2026, further advancing its exploration agenda.
Both Ocean Hill and Kadathinni are 100% owned and operated by Strike, underscoring the company’s strategic control over these assets. Ocean Hill’s proximity to a compressor station on the Dampier to Bunbury Natural Gas Pipeline and its favourable gas composition offer a clear, low-cost route to market, enhancing its commercial viability in a tightening domestic gas market.
Strategic Implications and Outlook
Executive Director and Acting CEO Jill Hoffmann emphasised the significance of these seismic results, describing them as a strong endorsement of Strike’s portfolio depth and growth potential. The technical work aligns with the company’s disciplined approach to unlocking long-term value and reflects the team’s capability in navigating the complexities of the Perth Basin.
Looking ahead, the timing and execution of appraisal and exploration drilling programs remain subject to Strike’s ongoing strategic review. The company plans to engage independent experts to update contingent resource certifications, which will be critical for informing future development decisions and investor confidence.
Bottom Line?
Strike’s seismic insights set the stage for a pivotal phase of appraisal and exploration that could reshape its Perth Basin prospects.
Questions in the middle?
- How will Strike’s strategic review influence the timing and scale of upcoming drilling programs?
- What impact could updated contingent resource certifications have on Strike’s valuation?
- How might evolving domestic gas market dynamics affect the commercialisation of Ocean Hill and Kadathinni?