Strike Energy shares fall 31% after further well test issues

The news: Shares in Strike Energy dropped 31% after providing an update on a failed well test in the Perth Basin.

The numbers: Strike Energy shares were trading at 20 cents by 2:25pm AEDT. The Perth-based company, which was added to the ASX 200 earlier this month, saw its share price fall 23% to 31.5 cents in one session last week after reporting that its South Erregulla-3 well unexpectedly failed to flow during testing.

The context: The oil and gas explorer said testing had now commenced on its South Erregulla-2 well, where drilling and completing fluids had been displaced from the well bore. Strike said it is "looking to mobilise additional equipment" in the coming weeks to conduct further testing.

Meanwhile, at its South Erregulla-3 site, well head pressure has built up and is continuing to rise. The company said it is "conducting additional independent reviews and internal analysis to support the forward plan" at both wells.