Strike Energy’s (ASX:STX) latest update has been well received by its enthusiasts and shareholders on HotCopper, announcing an aggregate 28m net gas pay find downhole Erregulla Deep-1 – Australia’s deepest ever onshore well.
Multiple users questioned on Tuesday morning whether or not this will scare shorters away – currently, Strike is one of the most heavily shorted stocks on the ASX after it drilled a duster earlier this year.
To be sure, that may soon change – not only is Erregulla Deep-1 Australai’s deepest ever well drilled onshore, it has also effectively proven that a Permian-age gas play underground on-site extends to the east.
Measured depth clocked in at 5,225m; Strike owns acreage in an easterly direction – leaving open the possibility of further finds.
Of the 28m aggregate, 26m of net gas was hit in the Kingia Sandstone; a smaller 2m net gas pay was hit in the High Cliff Sandstone. Strike described the sandstone reservoirs as “well charged.”
Notably, the company is also poking around the Irwin River Coal Measures.
“Evaluation was conducted over a sand body within the Irwin River Coal Measure. This zone had a strong mud gas response … due to bore hole breakout a sample was unable to be collected and cannot be categorised as a discovery … this zone warrants additional evaluation,” Strike wrote on Tuesday.
Management commentary outlined the excitement the find has caused for Strike.
“The discoveries at Erregulla Deep are higher quality than Strike anticipated prior to drilling,” CEO Stuart Nicholls said.
STX last traded at 19.5cps.