A Perth Basin gas project jointly owned by Gina Rinehart’s Hancock Energy and John Poynton-chaired Strike Energy has been granted a key state approval.
A Perth Basin gas project jointly owned by Gina Rinehart’s Hancock Energy and John Poynton-chaired Strike Energy has been granted a key state approval.
The development plan for West Erregulla gas project was granted environmental approval by Acting Environment Minister Tony Buti late yesterday.
The environmental approval is a key piece in the development puzzle for West Erregulla, where the joint venture partners are working toward a final investment decision next quarter.
The minister’s tick coincided with approval of AGIG’s plan for midstream infrastructure connecting the project’s plant and pipeline.
In a brief statement to the market, project operator and 50 per cent owner Strike Energy said the approval was a “major de-risking event” for the joint venture partners as they progressed their plan to produce from the field.
Strike said the milestone was the culmination of more than three years of work.
The approval came with conditions that the proponents review and revise certain aspects of their submission, including their weed hygiene management plan, and carry out additional plant surveys to confirm numbers.
It also highlighted the presence of the Carnaby’s black cockatoo in the region, setting limits for the amount of habitat which can be disturbed by the project’s development.
West Erregulla is a key part of Strike’s accelerated gas development strategy for the Perth Basin region, which has state government endorsement amid a tight domestic supply environment.
The project came into the spotlight early in 2023, when Strike and Hancock entered a bidding war for control of Warrego Energy with an eye on its 50 per cent stake in West Erregulla.
Hancock won the battle for half the project, with Warrego a Hancock subsidiary.
But the bidding war left Strike, which already owned 50 per cent of the project, cashed up and placed to bring the project to production.
The company became a producer from its Walyering field in the latter half of last year and hopes to bring on four new fields by 2026.
Strike shares were up 0.9 per cent in early trade, at 22 cents.
