- Strike Energy (STX) is working toward first cashflows following successful appraisal results over the December quarter from its Walyering-5 well in the Perth Basin
- For the quarter ending December 31, the company reported total cash outgoings of $7.2 million from operating, exploration and evaluation activities
- Managing Director Stuart Nicholls says Strike continued its run of successful exploration and appraisal results in the Perth Basin over the quarter
- Strike intends to restart production from Walyering shortly, and progress towards first cashflows, which it says could come as early as the end of the current calendar year
- Shares dipped 4.9 per cent, trading at 24.3 cents
Strike Energy (STX) is working toward first cashflows following successful appraisal results over the December quarter from its Walyering-5 well in the Perth Basin.
For the quarter ending December 31, the company reported total cash outgoings of $7.2 million from operating, exploration and evaluation activities.
Cash on hand at the end of the period was $41 million, leaving an estimated 5.6 quarters of funding available.
Over the last quarter of the year, Managing Director Stuart Nicholls said Strike continued its run of successful exploration and appraisal results in the Perth Basin, with the positive confirmation of a conventional gas accumulation at the Walyering-5 appraisal well.
“Upon successful flow testing, Strike intends to re-start production from Walyering as soon as practicable and progress towards first cashflows, which with an aggressive development plan could come as early as the end of the current calendar year,” he said.
For this year, Strike plans to turn its focus to the execution of the South Erregulla 1 well that spudded this month.
The company said the well has the potential to unlock the gas feedstock for Project Haber, Strike’s fully integrated 1.4 megaton per annum low carbon urea manufacturing facility.
Company shares dropped 4.9 per cent to trade at 24.3 cents at 12:27 pm AEDT.