Strike shares rocket on 'exceptional' Erregulla test results
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The news: Strike Energy shares surged in morning trade on the ASX after the oil and gas explorer reported "exceptional" production testing result at its Erregulla Deep-1 (ED-1) exploration well in Western Australia.
The numbers: Strike shares were up 10.7% to 23 cents by 11am AEDT, having shed more than 50% since the turn of the year.
The context: Strike said production testing results at the Kingia Sandstone gas discovery at Erregulla Deep-1 saw "strong flow rates' and "one of the highest flowing pressures ever measured" in the Perth basin.
The Perth-based energy company — operator of the EP469/L25 joint venture which includes the West Erregulla gas field — said ED-1 is the deepest well ever drilled onshore Australia. ED-1 will be retained as a future producer for the upcoming West Erregulla gas field development.
Production testing and logging confirmed ED-1 has "extremely" high reservoir and flowing pressures, high degrees of permeability, no sand and no formation water production, and lower CO2 and other impurities compared to the West Erregulla gas field.
ED-1 will now be suspended as a future producer and testing equipment will be demobilised from the well site, Strike said.
What they said: "The test has confirmed that ED-1 is one of the best wells ever drilled in the Perth Basin with extremely high deliverability and low impurity," Strike managing director and chief executive Stuart Nicholls said.
"The well result has significant positive impacts on the West Erregulla field development and the neighbouring prospectivity where Strike has a major 100% owned tenement position."
The source: ASX announcement
