- Strike Energy (STX) comes across a hurdle with its West Erregulla 5 (WE5) well following an interim production testing at the well
- Results showed a production barrier that the reservoir was unable to overcome through flow testing
- Strike believes this barrier is the aftermath of filtrate skin from cement and mud invasion from the drilling
- The company plans to retest the well in the coming weeks
- Just before the market opens, Strike shares are sitting at 31 cents apiece
Strike Energy (STX) has come across a hurdle with its West Erregulla 5 (WE5) well.
The company and its joint venture partner, Warrego Energy (WGO), recently conducted interim production testing at the well.
Results showed a production barrier that the reservoir was unable to overcome through flow testing.
Strike believes this barrier is the aftermath of filtrate skin from cement and mud invasion from the drilling.
Instant rates from WE5 were measured at 13.1 million standard cubic feet per day from two separate perforated zones over a combined 31-metre interval in the Kingia Sandstone.
The flow rates and pressures were stable throughout the extended flow period and, in conjunction with pressure build-ups, show no evidence of depletion from the test..
Notably, gas sample analysis shows WE5 has a similar gas composition to the other well results from the field.
Strike is planning a retest at the well in the coming weeks.
CEO and Managing Director, Stuart Nicholls, is still looking forward to exploring WE5.
“Whilst this production test has been impacted by skin and near wellbore reservoir impairment, it has answered many of the remaining questions required to progress the independent resource and reserve booking which the joint venture is excited to proceed with,” Mr Nicholls said.
“Strike will be back to WE5 shortly to recomplete and retest the well with an expectation that superior flow results will be achievable with the deployment of alternative completion methods. This will then allow the Joint Venture to place WE5 on inventory for the proposed phase one production operation.”
Just before the market opens, Strike last traded at 31 cents per share.