- Strike Energy (STX) has spud WE4, the next well in the West Erregulla Appraisal Campaign in the Perth Basin
- Strike is the operator of the 50:50 joint venture with Warrego Energy (WGO)
- Work at WE3 was temporarily suspended after the well encountered an over-pressured gas column until additional engineers works can be completed
- WE4, in addition to the next proposed well, are designed to appraise the reservoir distribution of the central fault block
- Strike Energy is up 1.49 per cent to 34 cents in early trade, while Warrego is up 2.22 per cent to 23 cents
Strike Energy (STX) has spud WE4, the next well in the West Erregulla Appraisal Campaign in the Perth Basin.
Strike is the operator of the EP469 joint venture with Warrego Energy (WGO) in which each party holds a 50 per cent interest.
Drilling at WE3 was temporarily suspended earlier this month after the well encountered an over-pressured gas column.
It was decided that further engineering, materials and equipment would be needed to continue safely and in the meantime, the drill rig would move onto WE4.
Consequently, the timeline to the final investment decision will be pushed back somewhat but Strike CEO and Managing Director Stuart Nicholls said the over-pressured zone bodes well for the significance of the resource.
Over the weekend, WE4 was officially spudded and next, Strike will drill the well from the pre-installed conductor to a depth of 1200 metres.
Both WE4, in addition to the next proposed well WE5, are designed to appraise the reservoir distribution of the central fault block and will be drilled to a final depth of approximately 5000 metres.
Given successful flow testing, the joint venture plans for the wells to form part of the proposed phase one production operations.
Strike Energy is up 1.49 per cent to 34 cents in early trade, while Warrego is up 2.22 per cent to 23 cents at 11:00 am AEDT.