- Oil and gas explorer Strike Energy (STX) has provided an update on its West Erregulla joint venture with Warrego Energy (WGO)
- The company recently completed drilling the first intermediate hole section at WE3, reaching a final section depth of 2462 metres
- Strike will now drill the second intermediate hole section down to a depth of between 3750 metres and 4150 metres
- STX also believes it has identified the root causes of the previous drilling assembly failures and has taken steps to stop it from occurring again
- As a result, the company expects that the rate of progress for the well should now increase
- Shares in STX have opened trading up 1.02 per cent at 24.8 cents each, while Warrego Energy is up 2.5 per cent at 20.5 cents each
Strike Energy (STX) has provided an update on its West Erregulla joint venture with Warrego Energy (WGO).
The oil and gas explorer revealed it had recently completed drilling the first intermediate hole section at WE3, reaching a final section depth of 2462 metres.
In addition, Strike was also been able to run the casing to depth without issue and has cemented it in place.
Before reaching the amended casing point, hydrocarbon shows were observed in the upper Cattamarra Coal Measures which is consistent with geological models and past observations in WE2.
Following the completion of the first hole, Strike said its focus will now turn to drilling the second intermediate hole section.
The oil and gas explorer said this hole will continue down to a depth of between 3750 metres and 4150 metres.
STX also believes it has identified the root causes of the previous drilling assembly failures and has taken steps to stop it from occurring again.
As a result, the company expects that the rate of progress for the well should now increase.
In total, up to three appraisal wells will be drilled in the West Erregulla field, which is 50 per cent owned by Strike and 50 per cent owned by Warrego.
Strike Energy opened Thursday’s session trading up 1.02 per cent at 24.8 cents each, while Warrego Energy is up 2.5 per cent at 20.5 cents each at 11:01 am AEDT