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- Strike Energy (STX) has received a $200,000 state government grant to support the drilling campaign at South Erregulla-1 in the Perth Basin
- The company is preparing to spud the South Erregulla-1 well in the fourth quarter of 2021
- Additionally, the WA Department of Mines, Industry Regulation and Safety has granted Strike exploration permit EP505 after the conversion of EPA98
- The permit will see the start of the planned 2D seismic survey, which is set to be shot in the middle of 2021
- Strike also announced that encouraging results from the West Erregulla appraisal campaign have been applied to the South Erregulla prospect, increasing the assessed probability of success to 61 per cent
- Shares last traded in the green, 2.9 per cent higher at 34.5 cents apiece
Strike Energy (STX) has received a $200,000 state government grant to support the drilling campaign at South Erregulla-1 in the Perth Basin.
According to the company, The Exploration Incentive Scheme grant endorses Strike’s technical work and supports the commercialisation of the company’s resources as quick as possible.
The company is preparing to spud the South Erregulla-1 well in the fourth quarter of 2021.
Additionally, the WA Department of Mines, Industry Regulation and Safety has granted Strike exploration permit EP505 after the conversion of EPA98.
This permit is also a result of endorsement from the various stakeholders with infrastructure inside the permit boundaries, the conclusion of the Geraldton Alternate Settlement Agreement and the corresponding Indigenous Land Use Agreement.
Permit EP505 allows for data acquisition over South Erregulla to progress, starting with the planned 2D seismic survey, which is set to be shot in the middle of 2021.
In a company update released to the ASX today, Strike has noted that to date, all 15 penetrations of the Kingia Sandstone in and around the Dandaragan Trough have encountered commercial grade conventional reservoir development.
This includes the three deepest penetrations at West Erregulla-2, West Erregulla-4 and Beharra Springs Deep-1.
Since 2018, well results have been incorporated into revised isopach maps of the Upper Kingia Sandstone, which the company says indicates high confidence in extension of the reservoir fairway to the south and southeast.
Consequently, the results from the West Erregulla appraisal campaign have been applied to the South Erregulla prospect, increasing the assessed probability of success to 61 per cent.
This increase is partly driven by increased confidence in the presence of commercial reservoir at the Kingia level and also by confirmation of a thick hydrocarbon column and deep gas-water-contact (GWC) in West Erregulla.
Strike said in the update that the deep West Erregulla GWC lies below the saddle connecting the West and South Erregulla structures and shows that the
field is “filled to spill”.
Trap shape and size, however, remain as risks, given the current 2D seismic control. As a result, the company believes there’s a possibility that un-imaged faults may compartmentalise the larger field into smaller blocks.
However, characteristics seen in 3D seismic surveys surrounding South Erregulla keep Strike confident as to the positive potential outcome.
Shares last traded in the green, 2.9 per cent higher at 34.5 cents apiece.
