Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Strike Energy (STX) reports “outstanding” productivity from flow testing at its onshore South Erregulla gas discovery in the North Perth Basin
  • The company began flow testing in the Kingia sandstone reservoir in May and says the tests recorded a peak gas rate of 80 million standard cubic feet per day (mmscfd)
  • Moreover, Strike says the sustained flow rate from the Kingia sandstone is one of the highest rates recorded in the history of the Perth Basin at 78 mmscfd
  • In addition to the strong flow rates, Strike observes no sand or formation water in the tests, and the gas stream produced from the Kingia sandstone is a low-impurity dry gas
  • Shares in Strike Energy last traded at 29 cents each on June 1

Oil and gas explorer Strike Energy (STX) has reported “outstanding” productivity from flow testing at its onshore South Erregulla gas discovery in the North Perth Basin.

The company announced in May it was set to begin flow testing across the Kingia sandstone reservoir and today said the testing recorded a peak gas rate of 80 million standard cubic feet per day (mmscfd) from the well.

Moreover, Strike said the sustained flow rate in the Kingia sandstone was one of the highest rates in the history of the Perth Basin at 78 mmscfd on a 78/64″choke flow tubing head pressure of 2590 psi over a five-hour test.

Strike said this production rate was constrained by well testing equipment, suggesting the well could produce at over 100 mmscfd at unrestricted rates.

“This excellent flow testing provides additional confidence that the Kingia gas discovery at South Erregulla is a large, productive source of low-cost, low impurity natural gas, and that it can form the foundation of Project Haber’s globally competitive nitrogen-based urea fertiliser,” Strike Managing Director and CEO Stuart Nicholls said.

“In a time where undeveloped sources of gas are nationally and globally short, the significance of Strike’s Perth Basin success continues to rise.”

In addition to the strong flow rates, Strike said it observed no sand or formation water in the tests, and the gas stream produced from the Kingia sandstone was a low-impurity dry gas — in line with gas compositions from the Greater Erregulla region.

Strike is currently completing a final flow period in the area before it shuts the well in for a pressure build-up which it will monitor through downhole gauges.

In the meantime, Strike is gearing up to begin production testing at the South Erregulla-1 over-pressure Wagina gas discovery.

Shares in Strike Energy last traded at 29 cents each on June 1.

STX by the numbers
More From The Market Herald

" OreCorp (ASX:ORR) kicks off next round of drilling at Nyanzaga, Tanzania

OreCorp (ASX:ORR) prepares for further drilling at its Nyanzaga gold project in Tanzania.

" Milan Jerkovic resigns as Executive Chairman from Wiluna Mining (ASX:WMC) in management shakeup

Long-time Executive Chairman Milan Jerkovic has resigned from his role at Wiluna Mining (ASX:WMC) effective immediately,…

" Tennant Minerals (ASX:TMS) extends Bluebird discovery, NT

Tennant Minerals (ASX:TMS) has extended the Bluebird discovery to the west and to more than 250…
The Market Herald Video

" Bubs Australia (ASX:BUB) completes $40.1m institutional cap raise

Infant nutrition and dairy specialist Bubs Australia (ASX:BUB) has raised $40.1 million through the institutional component…