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  • Warrego and joint venture partner, Strike Energy have made a significant conventional gas discovery in the Wagina sandstone
  • This gas flow and a significant increase in drilling rate through the Wagina sandstone suggests encouraging permeability and porosity at 4200 metres
  • King-High Cliff zone expected to be intersected by the end of August 2019

Warrego Energy has reported encouraging results from the Wagina sandstone and a forward view of West Erregulla-2’s (WE-2) primary target.

West Erregulla-2 is part of a 50-50 joint venture between Warrego and Strike Energy. Strike is drilling WE-2 to a planned depth of 5200 metres and is targeting conventional gas in the Basal Wagina sandstone and the primary gas sequence in the Kingia High Cliff.

Last week, gas was discovered in the Wagina sandstone. Hydrocarbons have been seen throughout the drilling of the most recent section from 3371 metres to 4229 metres.

This gas flow and significant increase in drilling rate through the Wagina sandstone suggests encouraging permeability and porosity at 4200 metres wasn’t seen in WE-1.

“The gas discovery in the upper Wagina is a very encouraging result from what is essentially a secondary target with more potential reservoir to be drilled,” Warrego CEO David Casey said.

WE-2 spudded in June and is intersecting the Kingia-High Cliff sand sequence.

The quality of these sands gives the joint venture partners an excellent indication as to the primary Kingia-High Cliff targets in the well.

During recent evaluation work, poor hole conditions meant that logging to measure porosity was only possible for the very upper portion of Wagina, which yielded a porosity of 14 per cent. This has proved to be encouraging when considering the drilling break when intersecting the Wagina and the clean porous sands observed from 4111 metres to 4117 metres.

Strike and Warrego have agreed the best forward plan is to complete drilling the Basal Wagina sandstone and drill ahead to reach the primary King-High Cliff gas targets by the end of August 2019.

“The challenges of getting to this point over the past 10 years and now drilling what is Australia’s deepest onshore well to date should not be underestimated. It is a testament to the efforts of everybody involved that we find ourselves close to what could be a transformational outcome for both JV partners. The next few weeks are shaping up as a very exciting period for shareholders and stakeholders alike,” Managing Director Dennis Donald said.

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