Strike Energy's (ASX:STX) spudding of the Walyering West-1 exploration well in Western Australia is deemed a "near-term, high-impact" catalyst for the company with its proximity to infrastructure and potential to extend the life of its producing asset, Euroz Hartleys said in a Thursday note.

The company recently started drilling at the well to test a 46-petajoule 2U prospective resource within a proven hydrocarbon system, with total depth planned at about 3,639 meters measured depth rotary table.

Drilling will last about 20 days, with initial results expected in early May, the financial services firm said.

If successful, the well can be tied back to the existing Walyering processing facility for commercialization, potentially within 12 months.

Additionally, the project has the potential to extend the production life of the Walyering gas field by five to seven years.

Euroz Hartleys reaffirmed its buy recommendation and AU$0.21 price target on Strike Energy.