Strike Energy (ASX:STX) has the potential to make this year a "transformational" year with major developments underway, Euroz Hartleys said in a Monday note.

The company recently secured all regulatory approvals required to start drilling the Walyering West-1 exploration well in the Perth Basin, Western Australia.

Spudding of the exploration well is expected by mid-April.

Walyering West-1 is targeting a structure west of the Walyering field, estimated to contain a best estimate prospective resource of 46 petajoules, which, on successful discovery, could extend production by seven years at 20 terajoules per day, generating more than AU$60 million in revenue per year, Euroz Hartleys said.

With multiple catalysts ahead, including Walyering West-1 drilling results, West Erregulla development progress, as well as South Erregulla gas peaking plant first revenue, the firm sees an attractive investment entry point for those with a medium-term perspective on improving earnings visibility, with valuation support.

Euroz Hartleys reaffirmed its buy recommendation on Strike Energy and price target of AU$0.24.

Strike Energy shares fell 1% in afternoon trade Tuesday.