On 25 January 2019, Strike Energy Limited (ASX: STX), an oil and gas exploration company from the energy sector announced its Jaws pilot update. The company has attempted to re-establish normal downhole conditions without using any rig. In January 2019, the company had a significant gas event where a sand body was deposited into the wellbore which impacted the communication between the horizontal and vertical wells. For this reason, there was a rig-less intervention at the Jaws well. The issue continued throughout the month at regular intervals with a frequent sign of improvement with the hope that it might get clean by itself with the oscillation of the downhole pumps.
On 24 February 2019, STX took support from Halliburton pump truck to Jaws and carried out flushing operations from the vertical well. However, it was unsuccessful in removing the sand using a horizontal pump. Now, the company will be escalating the intervention program and will soon be using the workover rig and coiled tubing unit to site using a nitrogen lift and remove the sand and return the well to normal conditions.
In the mid of February, STX expects some appropriate services will reach at Jaws. The entire process workover and cleanup program will take approximately two weeks. The company hopes that through this operation, there is a high degree of certainty that the sand will get cleared and the communication through the wellbore will get restored.
Until the workover program starts, STX will be using its vertical well pump to dewater to manage the bottom hole pressure continuously.
The official listing date of STX on ASX is 5 August 2004 where the performance of the company remains consistently negative. In last one year, the performance of the company was -6.94%.
As per the Q4 results of STX for FY2018, the Jaws gas trend remains positive. There was a major gas release during the new year day indicates the quality and potential for material gas flow. During the period, the company successfully raised $14 million through placement and SPP.
During the period, the company used net cash of $3.358 million in its operating activities, where the primary source of cash outflow was in the form of exploration & evaluation where they used $2.577 million. The other sources of cash outflow were through administration and corporate costs, staff cost.
The company used net cash of $0.116 million from the investing activities of the company. Here, the main cause of cash outflow was due to the payment made for the acquisition of property, plant and equipment and investment. There was a net cash inflow of $13.140 million from the financing activities of the company. Here the company generated revenue by issuing shares of the company.
By the end of the Q4 FY2018, STX had net cash of $11.518 million. By the end of the trading on 25 January 2019, the closing price of the share was A$0.068 which 0.001 points above its previous trading day’s closing price with the stock holding a market capitalization of A$90.79 million and PE ratio 33.50x.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.