Strike Energy Initiates Flow Testing at Erregulla Deep-1 Well
STX (STX) Share Update September 2024 Monday 30th
Strike Energy Commences Flow Testing at Erregulla Deep-1 Well
Strike Energy Limited (ASX: STX) has announced the commencement of flow testing at its Erregulla Deep-1 (ED1) discovery well, marking a significant milestone in the exploration of the West Erregulla gas field.
Instant Summary:
- Erregulla Deep-1 (ED1) well commences flow testing program.
- High-pressure gas flows initiated from Kingia Sandstone.
- Flow testing program expected to take up to 4 weeks.
- Testing to include High Cliff Sandstone gas discovery.
- Preliminary results are positive but not definitive.
Flow Testing Details
Strike Energy Limited (Strike), as the operator of the EP469/L25 Joint Venture, has commenced the flow testing program at the Erregulla Deep-1 (ED1) discovery well in EP469. The ED1 well, which is the deepest well ever drilled onshore Australia, has initiated very high-pressure conventional gas flows to the surface from the Kingia Sandstone during the clean-up phase of the program.
The flow testing program, which began on 30th September 2024, is expected to take up to 4 weeks to complete. This program will include testing of the High Cliff Sandstone gas discovery. While the initial observations are positive, they are preliminary in nature, and the final outcome of the well test remains subject to the results of the full flow test program.
About the Erregulla Deep-1 Exploration Campaign
The Erregulla Deep-1 well was drilled into an interpreted structural closure adjacent and due east of the existing reserves at the West Erregulla gas field and on trend with the Lockyer and North Erregulla gas discoveries. The well is located at Lat: 29° 22' 19.91" S, Long: 115° 24' 17.66" E.
The EP469 Joint Venture is composed of Strike Energy, holding a 50% stake and serving as the operator, and Warrego Energy 469 Pty Ltd, also holding a 50% stake. The announcement was authorized for release by the Managing Director and Chief Executive Officer in accordance with the company's Continuous Disclosure Policy.
Forward-Looking Statements
Statements in this release, including those regarding future costs, projected timeframes, performance, and potential growth, are forward-looking statements. These statements involve known and unknown risks and significant uncertainties, many of which are outside the control of Strike Energy. Actual results may differ materially from those expressed or implied by these statements.
The commencement of flow testing at the Erregulla Deep-1 well is a significant milestone for Strike Energy. The high-pressure gas flows from the Kingia Sandstone are promising, and if the full flow test program yields positive results, it could significantly impact the company's stock price. The potential for substantial gas reserves could attract investor interest and boost market confidence in Strike Energy's exploration capabilities.
Investor Reaction:
Analysts are likely to view the commencement of flow testing at the Erregulla Deep-1 well as a positive development. The initial high-pressure gas flows are encouraging, but investors will be keenly watching for the final results of the flow test program. If the results confirm substantial gas reserves, it could lead to a positive reaction in the market.
Conclusion:
Investors should closely monitor the progress of the flow testing program at the Erregulla Deep-1 well. The final results, expected in about 4 weeks, will provide crucial insights into the potential gas reserves at the site. Strike Energy's ability to successfully complete the testing program and confirm significant gas flows will be key to maintaining and potentially increasing investor confidence.