Strike Energy's Walyering-7 Flow Test Yields Positive Results
STX (STX) Share Update August 2024 Thursday 1st
Strike Energy Announces Successful Walyering-7 Flow Test
Strike Energy Limited (ASX: STX) has announced the successful completion of its Walyering-7 flow testing program, revealing promising gas and condensate production rates.
Instant Summary:
- Maximum recorded gas rate of 14 TJ/d and liquid rate of 900 bbls/d of condensate.
- Low impurity gas with elevated energy conversion factor.
- Higher condensate gas ratio than expected.
- Testing covered 7 zones with ongoing analysis to optimize production.
- All produced gas and condensates sold into existing marketing arrangements.
Flow Test Results
Strike Energy Limited (Strike) has successfully completed the flow testing program for the Walyering-7 (W7) appraisal well at the Walyering gas field in the Perth Basin. The flow test, conducted over 40 days, recorded a maximum gas rate of 14 terajoules per day (TJ/d) and a liquid rate of 900 barrels per day (bbls/d) of condensate.
The gas composition analysis revealed low impurity levels, resulting in an elevated energy conversion factor and a significantly higher condensate gas ratio than initially expected. These findings indicate a higher heating value and increased daily condensate production, which are positive outcomes for Strike.
Testing and Configuration
The testing program covered seven zones, each completed behind individual sliding sleeves. A six-hour test of all zones flowed at 4 TJ/d and 900 bbls/d of condensate on a 24/64” choke. When configured to only four open zones identified as gassier, W7 flowed at 7 TJ/d and 400 bbls/d of condensate on a 20/64” choke. Ongoing analysis aims to determine the best configuration to maximize gas production and optimize condensate volume.
Next Steps
All gas and condensates produced during the testing phase have been sold under Strike’s existing marketing arrangements. Walyering-7 will now be shut in and prepared for a permanent tie-in to the Walyering gas processing facility, expected to be completed by the end of the quarter. The slickline unit will move to Walyering-6 to test deeper prospective reservoirs.
Strike’s Managing Director and Chief Executive Officer expressed optimism about the results, highlighting the unexpected condensate and heating value outcomes. The company is focusing on identifying higher-margin opportunities to sell or consume the condensate locally in Western Australia.
The successful flow test at Walyering-7 is a positive development for Strike Energy, potentially boosting investor confidence and stock value. The higher-than-expected condensate gas ratio and elevated energy conversion factor indicate strong production potential, which could lead to increased revenue streams.
Investor Reaction:
Analysts are likely to view the results favorably, given the higher-than-expected production rates and quality of the gas and condensate. The successful test and subsequent plans for permanent tie-in suggest a stable and promising future for the Walyering gas field.
Conclusion:
Investors should keep an eye on Strike Energy's ongoing developments, particularly the final configuration and optimization of the Walyering-7 well. The company's strategic efforts to maximize production and explore higher-margin opportunities could significantly impact its future performance.