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Strike Energy’s (ASX:STX) big rig heads west
Source: Strike Energy
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  • Strike Energy (STX) has revealed results from its West Erregulla 4 well (WE4) have exceeded expectations and extended the wider gas field
  • Strike and Warrego Energy (WGO) are exploring West Erregulla, which is located in the Perth basin, as part of a joint venture agreement
  • The companies advise that WE4 has reached a final depth of 5069 metres with initial wireline and pressure results recorded
  • They show WE4 has the thickest Kingia penetration seen in the basin to date at 155 metres, with porosities of up to 19 per cent
  • Pleasingly, gas was observed throughout the entire reservoir sections, with pressure in the Kingia hitting 6821 pounds per square inch
  • Additionally, Strike's 'gas down to' has now been extended deeper by 61 metres — expanding the areal extent of the wider gas field
  • Shares in STX are trading up 4.55 per cent at 34.5 cents per share

Strike Energy (STX) has revealed results from its West Erregulla 4 well (WE4) have exceeded expectations and helped extend the wider gas field.

Strike and Warrego Energy (WGO) are exploring West Erregulla, which is located in the Perth basin of WA, as part of their EP469 joint venture agreement.

WE4 update

STX advises since its last update, it has drilled through a thickened Kingia Sandstone, the Bit Basher Shale and the High Cliff Sandstone to a final well depth of 5069 metres.

Initial wireline and pressure results have been recorded and Strike has labelled the results as being "above expectations" given the down-dip location of the WE4 well on the West Erregulla structure.

Specifically, the results show WE4 has the thickest Kingia penetration seen in the basin to date at 155 metres.

It also has high gas saturation throughout and is interpreted to have net pay of 28 metres with porosities of up to 19 per cent.

Pleasingly, Strike said gas was observed throughout the entire reservoir sections, and no gas water contact was observed.

Pressure in the Kingia Sandstone hit 6821 pounds per square inch at 4898 metres, similar to results from WE2, which STX explained means there was likely connectivity within the field.

These are significant developments for the company, as Strike's 'gas down to' has now been extended deeper by a further 61 metres.

Next steps

Following these initial results, Strike is finishing the wireline logs and getting ready to run the final production casing string, which will be cemented in place.

It needs to be completed for the upcoming flow test across the Kingia Sandstones, with WE4 to then be kept on inventory, while the rig will move WE5 to commence drilling.

Shares in Strike Energy are trading up 4.55 per cent at 34.5 cents per share at 1:20 pm AEST.

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