Strike Energy shares surge on 'positive' finding at Erregulla well
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The news: Strike Energy shares rocketed on the ASX after the Perth-based energy company reported "positive observations" during a drilling campaign at its Erregulla Deep-1 exploration well in Western Australia.
The numbers: Shares were up 15.2% to 19 cents by 2pm AEST, having slumped by more than 60% since the turn of the year.
The drilling activities were undertaken under the EP469 joint venture, operated by and 50% owned by Strike, in partnership with Warrego Energy. EP469 has approved the drilling of two exploration wells on the Southwest Erregulla prospect and the Erregulla Deep prospect.
The context: Strike reported "positive observations of sustained drilling breaks, with associated mud gas responses above background level" from the campaign.
"Logging while drilling tools have measured gamma-ray, resistivity, density and neutron which indicate gas charged porous sands in both formations," it said
The company noted that the observations are "preliminary in nature" and it will continue drilling before running a series of wireline logs.
Earlier this month, Strike shares dived after it reported a failed drilling campaign at its 25% owned L7 joint venture in the Perth Basin.
The source: ASX announcement
