Walyering-5, Perth Basin Source: Strike Energy
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Strike Energy’s (STX) flow test at the joint venture Walyering Gas Field materially exceeds its expectations
  • After 21 days of efforts, Strike completed flow testing activities at the Walyering-5 well, which were said to exceed its “most bullish estimates”
  • The news follows individual tests of the A and B sands, as well as a comingled flow test, resulting in the third highest test rate recorded in the Perth Basin
  • Strike says it will now investigate minor changes to the basis of the design to increase the throughput to 35 million standard cubic feet per day, without upscaling major components of the facility
  • Strike Energy last traded at 33 cents, while Talon Energy traded at 0.9 cents on May 2

Strike Energy’s (STX) flow test at the Walyering Gas Field has materially exceeded its expectations.

Strike is the operator and owner of a 55 per cent equity interest in the project, which is shared with Talon Energy (TPD).

After 21 days of efforts, Strike completed flow testing activities at the Walyering-5 well, which the company said outperformed its expectations.

“The outcomes of the Walyering-5 flow test have exceeded Strike’s most bullish estimates,” Strike Managing Director and Chief Executive Officer Stuart Nicholls said.

The news follows individual tests of the A and B sands, as well as a comingled flow test, with logging run from all four reservoirs after retrieving the down hole gauges and retrievable bridge plugs used to isolate the zones during testing.

The comingled flow produced a choke coefficient peak rate of 75 million standard cubic feet per day (mmscfd) on a 72/64 inch choke.

This marks the third highest test rate recorded in the Perth Basin.

Stabilised flows of 67 mmscfd with a flowing well head pressure of 2,634 pounds of force per square inch were measured on the same setting when diverted through a separator to measure liquid hydrocarbon streams.

Strike said these results exceeded all modelling, and support its assumptions for commercial gas production from the Walyering-5 well.

“The strength of the reservoir pressure, high quality gas stream and adjacency of gas transmission infrastructure will all come together to create some of the lowest cost gas to be developed in Australia for many years.”

The gas streams produced from both the A & B Sands are in line with the remainder of the field, having negligible impurities and a condensate gas ratio of approximately 6-9 mmscf.

Strike said the production rates seen from the A and B sands plus comingled tests demonstrate an exceptional result, given the high degree of back pressure on the well head when flowing, which suggests a material connected gas resource.

As a result of the flow rate results, Strike said it will now investigate minor changes to the basis of design for the facility to increase the throughput to 35 mmscfd, without upscaling major components.

Strike has now suspended W5 ahead of its final production well completion, which will be run with the Walyering-6 well prior to commissioning later in 2022.

Meanwhile, Walyering-6 is being drilled ahead at a depth of 2,130 metres after cementing the top-hole casing in place.

Strike Energy last traded at 33 cents, while Talon Energy traded at 0.9 cents on May 2.

STX by the numbers
More From The Market Herald
Countplus (ASX:CUP) - Incoming CEO, Hugh Humphrey

" Hugh Humphrey appointed CEO of Countplus (ASX:CUP)

Investment services company CountPlus (ASX:CUP) has appointed Hugh Humphrey as the company's CEO, effective July 1.

" ASX employee tests positive for Covid-19

The ASX says an employee has contracted Covid-19.

" ASIC launches official investigation into ASX market outage

The ASX has confirmed today it is officially under investigation from the Australian Securities and Investments…

" ASX sheds more light on last week’s market tech failure

The Australian Securities Exchange has shed some more light on the nature of last week's market…