Strike Energy (ASX:STX) and Talon Energy (ASX:TPD) report ‘strong’ early results from Walyering gas testing

• JV partners Strike Energy (STX) and Talon Energy (TPD) unveil “strong” interim results from a testing program at their Walyering onshore gas project in WA
• The results come from individual testing of the B, C and D sands at the Walyering-5 well, with the reservoirs showing similarities to the A sand at Walyering
• Strike says the latest results show the reservoirs have negligible impurities, and the liquids produced are of a light oil quality with minimal associated water production
• The Strike-Talon joint venture is busy flowing the B sand and, once this is completed, will then move on to perforate and test the A sand individually
• STX shares down 0.76 per cent to 32.8 cents and TPD shares up 5.56 per cent to one cent

Strike Energy (STX) has unveiled “strong” interim results from a testing program at its joint ventured Walyering onshore gas project near Cataby in Western Australia.

The junior energy explorer said it had completed individual testing of the B, C and D sands at the project’s Walyering-5 well.

Operator Strike holds a 55 per cent interest in Walyering in a joint venture (JV) with Talon Energy (TPD).

Strike said the B sand flowed at a maximum recorded rate of 33 million standard cubic feet per day (mmscfd) — a typical unit of measurement for natural gas flows — at 2,427 psi pressure. The B sand is currently on test.

The C sand flowed at a max rate of 32 mmscfd. The company said C sand stabilised rates were maintained for longer than 24 hours at 27 mmscfd, with flowing wellhead pressures of 2,083 psi.

The D sand flowed at a max rate of 13 mmscfd and stabilised rates were maintained for longer than 24 hours at 10 mmscfd at 813 psi.

Each of these tests was conducted through a 48/64-inch choke.

Strike said the gas streams produced in the D and C sands were similar to samples from the A sand at Walyering.

According to the company, the results show the reservoirs have negligible impurities, while the liquids produced are of a light oil quality with minimal associated water production.

The Strike-Talon JV is busy flowing the B sand and, once this is completed, will then move on to perforate and test the A sand individually.

The flowing work would be followed by a series of pipework upgrades across the testing package to ensure the equipment can handle the higher-than-expected rates of the final comingled test from all four reservoirs.

Strike and Talon have also spudded Walyering-6 and are drilling ahead in the top section of the well at about 969 metres measured depth (MD). The JV plans to drill Walyering-6 down to just over 3,500m MD.

STX shares were down 0.76 per cent to 32.8 cents and TPD shares were up 5.56 per cent to one cent at 1:32 pm AEST.