Originally published by Rebecca Le May of The West Australian.
01.09.2026
Hancock Energy will process Strike Energy’s share of gas from their Mid West joint venture and provide funding support in a deal the smaller partner described as a “transformational step”.
The onshore West Erregulla field is one of three at the Gina Rinehart-led company’s $1.5 billion-plus Belisama project, which is planned around a new $850 million processing facility and the Lockyer field acquired from Mineral Resources for $1.1b in 2024.
The Hancock Prospecting subsidiary took a 50 per cent stake in West Erregulla, about 50km south-east of Dongara, in early 2023 when it emerged the victor from a three-way battle to take over Warrego Energy.
Under the new deal, Hancock will provide up to $30m in funding support to Strike and take operatorship of the field upon a final investment decision being made. Hancock estimates that at full capacity, the Belisama project, pictured below, will supply up to 20 per cent of WA’s domestic gas demand over a 25-year life.
Announcing the deal on Monday, Mrs Rinehart, pictured right, added her voice to industry concern with the Federal Government’s controversial and yet to be finalised gas reservation policy.
She said Hancock was prepared to spend significant private capital to boost WA’s domestic gas supply, but added that projects of Belisama’s scale needed “stable and sensible government policies that encourage investment and development”.
“Belisama, subject to approvals, is planned to be a major investment in West Australia, creating jobs and bringing much-needed new gas supply,” Mrs Rinehart said.
Hancock is also railing against the Cook Government mandating the reservation of all gas from onshore projects for domestic use from 2031, up from 80 per cent currently.
“Extending the current 20 per cent export allowance beyond 2030 is crucial to underpin further exploration and investment in the high-risk gas exploration drilling and development needed for West Australians,” Hancock Prospecting chief executive Garry Korte said. “Finding and developing more gas grows supply for the benefit of all West Australians, with the export allowance playing an important role in supporting investment economics.”
The joint venture is targeting an upstream FID in the 2027-28 financial year and first gas production in mid-2029.
Strike — which had initially been planning to begin production in 2024 under its joint venture with Warrego — described the deal as a major breakthrough in the commercialisation of the gas field, giving it a clear pathway to development.
It comes less than four months after former Fortescue chief executive Nev Power was elevated to be Strike’s chair, while the iron ore miner’s former chief operating officer Shelley Robertson became chief executive.
Mr Power said Strike had kept a clear focus on the best funding outcome that would benefit shareholders.
