Strike Energy shares drop after failed drilling campaign
Make us a preferred source
Make us a preferred source on Google
The news: Strike Energy was one of the worst performing stocks across the ASX 200 in morning trade after it reported a failed drilling campaign at its 25% owned L7 joint venture in the Perth Basin.
The numbers: Strike energy shares were down 2.6% to $0.19 by 12:15pm AEST.
Strike has a 25% stake in the L7 joint venture, which also comprises ASX minnows Echelon Resources and Triangle Energy. Shares in both Echelon (-3.8%) and Triangle (-50%) slumped after the announcement.
The context: Echelon said key prospective reservoirs at the Perth Basin's Booth prospect have all been drilled and no moveable hydrocarbons have been intersected. The well will consequently be plugged and abandoned over the news few days.
The Booth prospect, which had potential for multiple oil and gas targets, was planned to be the first well in the joint venture's drilling campaign.
What they said: "No cigar," said Echelon CEO Andrew Jefferies. "A well drilled well, safe, under time and I'd expect under budget, but not the success we all fervently hoped for."
"I would like to thank the operator, rig company, crew and all the other parties who have been working so hard to help us answer the question at Booth," he said. "Nature has clearly answered."
The source: ASX announcement
