Strike, Warrego shares soar on Perth Basin find

Strike Energy shares have surged 90 per cent and Warrego Energy’s by 68 per cent after the joint venture partners announced a significant gas discovery as part of the West Erregulla-2 drilling campaign in the Perth Basin.

Strike, which has a 50 per cent operating interest in the project, said the find was staggering, reporting a gross gas column of at least 97 metres.

This included a 67-metre section made up of several high-quality large units of clean sand with thick blocky porosity development and high gas saturation.

Strike managing director Stuart Nicholls said it was an exceptional outcome.

“The Kingia results at West Erregulla have exceeded Strike’s highest expectations and indicate a significant discovery that appears to have higher reservoir quality than the Waitsia gas field,” he said.

“With West Erregulla-2 now being one of the deepest wells ever drilled onshore Australia and finding such excellent quality sandstone reservoirs, the subsurface paradigms of the Perth Basin are shifting.”

In May, the John Poynton-chaired Strike executed a $5 million sales option with Wesfarmers subsidiary CSBP, for up to 100 petajoules of gas from West Erregulla.

Shares in Strike Energy closed trade at 28 cents, Warrego’s at 31 cents.