AUS
NZ
UK
CA
USA
IND
Highlights
- Strike Energy reports strong well test results in the Perth Basin.
- Erregulla Deep-1 shows high flow rates with potential for even more impressive figures.
- The company reserves High Cliff gas discovery for future development.
Strike Energy (ASX:STX) gained significant attention on Monday with its latest update on the production test results from the Erregulla Deep-1 well in the Perth Basin. This announcement followed closely by many due to previous setbacks, but the recent data provided reasons for optimism.
The company reported very high flowing pressures in the well, with a geology that supports effective gas collection. Notably, there was no presence of sand or formation water, and the CO2 impurities were lower than those seen in other assets of Strike Energy. The flowing pressures recorded at Erregulla Deep-1 are among the highest reported in the Perth Basin.
According to Strike’s report, the Erregulla Deep-1 well logged stabilized flow rates of 53 million cubic feet per day, with a well head pressure of 5,515 psi on a 46/64” choke. This performance was limited by surface equipment, but the company suggested that the well has the potential for even higher flow rates, indicating an absolute open flow potential of 400-450 million cubic feet per day.
This well result drew immediate comparisons to Strike’s West Erregulla-2 well, with many noting the potential for Erregulla Deep-1 to deliver even higher numbers. The data generated a positive sentiment among stakeholders, particularly in forums like HotCopper, where excitement grew over the promising results.
Strike Energy also mentioned in its update that the High Cliff gas discovery is being reserved for a second phase of development. While samples and permeability have been confirmed at High Cliff, the company will focus on further developing Erregulla Deep-1 for now.
Stuart Nicholls, the company's CEO, praised the well’s performance, describing it as one of the best wells ever drilled in the Perth Basin. The success of the Erregulla Deep-1 well, according to Nicholls, is expected to have a significant positive impact on the future development of the West Erregulla field and the neighboring areas where Strike Energy holds a strong position.
The last trading price of Strike Energy shares stood at 21 cents.
