Perth-based oil and gas explorer Strike Energy shares have jumped after the company reported drilling results that exceeded expectations from its latest round of exploration in South Australia’s Cooper Basin.
Strike said today that preliminary mud and wireline log results from its Marsden 1 well confirmed the unconventional resource potential of its Cooper Basin permits, after drilling intersected more than 800 meters of Permian shales, coals and sands.
Elevated gas readings, including the presence of heavy hydrocarbons, were also recorded, Strike said.
Strike said the coal and shale thicknesses matched or bettered its pre-drill expectations, exceeding the values used in its resource model.
By close of trade today, Strike Energy stocks had gained 5.1 per cent, trading at 20.5 cents.
“We are very encouraged by the preliminary data received to date from Marsden 1,” Strike managing director David Wrench said.
“While we will be receiving additional data over the next few months from laboratory analysis of the samples taken, these early results are indicative of a very large and potentially liquids-rich prospective gas source.
“We know from our experience in the Eagle Ford Shale that the recovery of liquids associated with gas production significantly enhances project economics.”
