Strike Energy has secured independent certification of substantial gas resources at its Ocean Hill project, including a newly identified large prospect, setting the stage for drilling in late 2026.
- 180 PJ 2C Contingent Resources certified at Ocean Hill
- 190 PJ unrisked 2U Prospective Resources at Ocean Hill
- New Ocean Hill South prospect with 678 PJ unrisked 2U Prospective Resources
- 3D seismic data improved subsurface understanding
- Drilling of Ocean Hill-2 targeted for second half of 2026
Independent Certification Boosts Confidence
Strike Energy Limited (ASX, STX) has announced a significant update to its resource base at the Ocean Hill gas project in Western Australia's Perth Basin. Following the acquisition and detailed interpretation of a new 3D seismic survey, independent consultant RISC Advisory has certified 180 petajoules (PJ) of 2C Contingent Resources and an additional 190 PJ of unrisked 2U Prospective Resources at Ocean Hill. This certification reflects a more precise understanding of the subsurface geology, enhancing confidence in the resource estimates.
Discovery of Ocean Hill South Expands Prospectivity
Beyond Ocean Hill itself, the seismic data revealed a second large structure named Ocean Hill South. This newly identified prospect carries an unrisked 2U Prospective Resource estimate of 678 PJ, making it one of the largest undrilled prospects in Strike's Jurassic wet-gas play. The structure's compartmentalised nature and fault closures suggest significant potential, although it remains subject to further appraisal and drilling to confirm commercial viability.
Strategic Location and Development Pathway
Ocean Hill's proximity; approximately 6 kilometres; to Compressor Station 8 on the Dampier to Bunbury Natural Gas Pipeline offers a clear and cost-effective route to market. This infrastructure advantage supports Strike's ambition for a fast-tracked, low-cost development. The company is targeting to drill the Ocean Hill-2 well in the second half of calendar year 2026, contingent upon rig availability and capital allocation decisions following other development priorities.
Balanced Capital Allocation and Long-Term Value
Strike's Managing Director and CEO, Peter Stokes, emphasised the importance of disciplined capital management. He highlighted that the updated certification reinforces the scale and diversity of Strike's Perth Basin portfolio, positioning the company to deliver significant long-term value. The company intends to prioritise investments that promise timely and material returns while maintaining balance sheet strength.
Looking Ahead
While the resource estimates are robust and independently certified, they remain unrisked and probabilistic, meaning further drilling and appraisal are essential to confirm recoverable volumes and commercial viability. The upcoming Ocean Hill-2 drilling campaign will be a critical milestone in validating these resources and shaping Strike's development strategy in the region.
Bottom Line?
Strike Energy’s Ocean Hill update sets a promising stage, but drilling results in 2026 will be pivotal for unlocking value.
Questions in the middle?
- What will the drilling results at Ocean Hill-2 reveal about reservoir quality and gas composition?
- How will Strike balance capital allocation between Ocean Hill development and other projects?
- What is the timeline and likelihood for advancing Ocean Hill South from prospect to development?