Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Strike Energy (STX) and joint venture partner Warrego Energy (WGO) are re-entering the West Erregulla (WE3) well in the Perth Basin
  • Operations at the well were suspended in January 2021 after drilling intersected an over-pressured gas zone in the lower Carynginia Formation
  • Since the suspension, the companies proceeded to drill three more wells within the West Erregulla gas field but have determined it’s safe to recommence work at WE3
  • The rig has mobilised to the well site, and is set to re-enter the WE3 well today
  • Strike last traded at 30 cents and Warrego shares last traded at 13 cents on May 31

After a long suspension, Strike Energy (STX) is re-entering the West Erregulla-3 (WE3) well in the Perth Basin.

The WE3 well is found in the West Erregulla gas field and held in a 50:50 joint venture (JV) between Strike and fellow ASX-listed Warrego Energy (WGO). Strike Energy is the operator of the JV.

After intersecting an unexpectedly over-pressured gas zone in the lower Carynginia Formation in January 2021, the JV partners decided to temporarily suspend operations at the well until it was safe to recommence drilling.

Suspending the well meant a final investment decision (FID) would be pushed back and was expected to still be reached in the first half of 2021. However, the companies are yet to reach a FID as it’s still in the project financing stage.

Since the suspension of WE3, the JV partners moved to drill WE4, WE5 and most recently, WE6.

The companies have also adapted the well design and added additional services to the rig in the form of managed pressure drilling equipment to successfully complete the WE3 well to the final depth.

The rig has been mobilised to the well site and has completed rig-up activities to re-enter the well which was scheduled to occur today.

Drilling, casing and evaluation operations are expected to take around 45 days.

Strike last traded at 30 cents and Warrego shares last traded at 13 cents on May 31.

STX by the numbers
More From The Market Herald
Cavalier Resources (ASX:CVR) - Executive Technical Director, Daniel Tuffin

" Cavalier Resources (ASX:CVR) begins PFS at Crawford

Cavalier Resources (ASX:CVR) has begun a pre-feasibility study (PFS) at the Crawford Gold Project within the…
Ten Sixty Four (ASX:X64) - Outgoing Managing Director, Paul Ryan Welker

" Ten Sixty Four (ASX:X64) terminates services agreement of former MD, Paul Ryan Welker

Ten Sixty Four (ASX:X64) has terminated the executive services agreement of former Managing Director Paul Ryan…

" M3 Mining (ASX:M3M) identifies drill targets at Edjudina

M3 Mining (ASX:M3M) has identified prospective gold-in-soil anomalies at the Edjudina gold project 150 kilometres northeast…

" Good Drinks Australia (ASX:GDA) commences the sale of Molson Coors and Magners

Good Drinks Australia (ASX:GDA) begins to sell the Miller Chill, Miller Genuine Draught, Coors, Molson Canadian…