- Strike Energy has provided a substantial upgrade to its gas net pay estimate at the West Erregulla-2 project
- The initial drilling results indicated a net pay of 41 metres, but updated estimates have the total net pay reading closer to 58 metres
- Strike Energy acquired the West Erregulla project in early 2018 through a partnership with Warrego Energy
Strike Energy has provided a substantial upgrade to its gas net pay estimate at the West Erregulla-2 project.
The announcement builds on Strike Energy’s recent discovery at the Perth Basin, where a gross gas column of 97 metres was found in the Kingia sandstone deposits.
Published in August, the initial drilling results indicated a net pay of 41 metres with average gas grades of 19 per cent, but updated estimates have the total net pay reading closer to 58 metres.
The 17-metre increase, combined with research which now suggests reservoir pressure is sitting between 6814 and 6828 pounds per square inch, means Strike estimates the gas column reaches a staggering height of 220 metres.
“The Kingia gas discovery exhibits characteristics of one of the highest quality gas finds onshore Australia,” said Strike Energy Managing Director Stuart Nicholls.
“With 58 metres of net pay, this makes West Erregulla 2 the thickest net column seen in any Kingia penetration within the basin to date … The high reservoir pressures and excellent permeabilities are supportive of a significant recoverable gas resource with gas compositions in-line with the neighbouring Waitsia field,” Stuart continued.
Strike Energy acquired the West Erregulla project in early 2018 through a partnership with Warrego Energy. The joint venture means Strike will continue to cover drilling costs up to A$11 million at the project.
Exploration testing conducted by Strike sparked the discovery of the major gas column last month, following on from the company’s analysis at the Kingia High Cliff interval.
News of the discovery saw a spike in Strike Energy’s stocks, rising by 3.92 per cent to reach A$0.27 at midday AEST.