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Strike Energy (ASX:STK) has climbed another 1.25% a share after Christmas after the Australian-based HotCopper darling dolled out one last slice of good news before the tick-over to the new year.
The energy company today confirmed it had completed its 2024 logging and evaluation program at its Walyering East-1 exploration well; results were well-welcomed by the team, who said all signs point to a potential gas discovery.
Strike has been quietly confident for some time now that there would be good news as it probed through primary target A and D sands within the Cattamarra Formation where Walyering East-1 is located – and that confidence has been rewarded after the exploration team wrapped up mud log observations.
(All this is still subject to retrieving gas samples, of course, but Strike says it looks good.)
Of particular note were the results of the independent petrophysical assessment, which reported at least 13.4 metres of net gas pay in two distinct blocks. These blocks sit at around 42.7 metres gross intervals with maximum porosities of 16% and an average of 12%. Reservoir pressure was tipped at 4,953 psi.
There was a reported hiccup too, Strike added; hydrocarbon samples couldn’t be wrangled in because there were tool failures and mitigating drill conditions.
Overall though, a big win for the Perth energy explorer after what has been a proper rollercoaster ride through 2024 – it bounced from having to shelve a $3.3 billion project as it searched for more gas through to a “best ever” find at its Erregulla Deep-1 discovery well, all of which made it HotCopper’s most-watched stock.
Things will progress at the Walyering East-1 exploration well into the new year too, with Strike now looking to run production tests to collect samples. Should samples go the way Strike expects, “a discovery will be declared.”
Strike sold at 20.3 cents a share through late afternoon trade today.
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