Strike Energy (ASX: STX) Lifts Walyering 2P Gas Reserves

Strike Energy has increased proved and probable sales-gas reserves at its Walyering field after incorporating the adjacent Walyering West discovery.

Independent consultant RISC Advisory estimated 2P sales-gas reserves of 16.4 petajoules as of July 1, 2026. That compares with 13.6 petajoules a year earlier, despite 5.7 petajoules of production during fiscal 2026.

The updated estimate includes maiden 2P reserves from the C1 sand at Walyering West 1. Strike owns and operates 100% of permit L23, which contains both accumulations.

West Discovery Replenishes Production

The 2P calculation included 8.7 petajoules of additions and a negative revision of 0.2 petajoules. Those movements more than offset annual production, producing a net increase of 2.8 petajoules.

However, proved reserves declined as production outweighed additions. The 1P estimate fell to 6.1 petajoules from 11.2 petajoules.

Meanwhile, 3P reserves rose to 29.6 petajoules from 20.6 petajoules. The new estimate reflects 17.2 petajoules of additions, less production and a 2.5-petajoule downward revision.

RISC’s assessment used drilling, coring, logs, seismic data and production testing. It covered the Walyering 1 through 7 wells and Walyering West 1.

Walyering 5 and 6 recorded modest increases in connected volumes. By contrast, volumes attributed to Walyering 7 were removed from reserves.

Tie-In Decision Ahead

Strike is progressing planning and front-end engineering and design for the Walyering West 1 tie-in. The well would connect to the existing Walyering processing facility.

The company expects to make a final investment decision during the fourth quarter of calendar 2026. Until the tie-in occurs, Walyering West 1 reserves are classified as undeveloped.

Existing well recoveries also include compression planned to start during the third quarter of calendar 2026. The announcement provided no cost estimate for the tie-in or compression work.

Walyering is already a producing domestic gas asset in Western Australia. Walyering West sits beside that operation and is planned for development through existing production and processing infrastructure.

Additional Resource Inventory

Strike also reported a substantial increase in contingent resources following the Walyering West discovery. The 2C sales-gas estimate rose to 26.5 petajoules from 16.7 petajoules.

New contingent resources were booked across the Asub1 and several D sands at Walyering West. These estimates remain un-risked, and Strike assigns a 50% chance of development.

Some volumes require further technical work before they can become reserves. Asub1 requires a stable method for lifting liquids-rich fluids. The D sands require a workover to isolate a water zone and complete retesting.

Strike had about 16.3 petajoules of gas remaining under firm supply agreements as of July 1.

Managing Director and Chief Executive Officer Shelley Robertson said: “Strike will continue to focus on optimising production from the combined field and prudently managing its gas supply portfolio to support delivery under its existing gas sales agreements.”