PriceSensitive

Strike Energy (ASX:STX) ticks off third well test at West Erregulla

Energy
ASX:STX      MCAP $615.3M
12 July 2021 10:50 (AEST)
Strike Energy (ASX:STX) - Managing Director & CEO, Stuart Nicholls

Source: Strike Energy

Strike Energy (STX) has concluded production testing at its West Erregulla 4 well as part of its West Erregulla appraisal campaign in Western Australia.

The well was designed to appraise the reservoir distribution of the field ahead of becoming potential producers and marks the third tested so far within the project.

The company performed a series of flow tests at various choke settings to enable the characterisation of the well’s deliverability parameters.

Strike said flow rates of 35 million standard cubic feet per day were observed during sustained testing.

Broadly, Strike said the testing supports the progression of phase one development, with WE4 said to bear similar productivity characteristics to the regional Permian gas fairway wells from Witsia and Beharra.

The company noted its own separate interpretations on the findings from its joint venture partner, Warrego Energy (WGO), but that it remained confident on its assumptions based on the testing outcomes.

Strike advised it would be shutting in the well to observe a long-term pressure build-up, from there the company said the well will be suspended until the next development phase of the gas field.

Strike Energy shares are trading in the grey at 32.5 cents at 10:18 am AEST.

Related News