Strike intersects hydrocarbon shows in Perth Basin
The excitement is building at Strike Energy’s multi-target West Erregulla-2 well in the Perth Basin, Western Australia, which encountered pronounced hydrocarbon shows in the Lesueur Sandstone and Woodada Siltstone formations.
Both formations displayed fair to good visual porosity, positive hydrocarbon fluorescence in the cuttings and good elevated mud gas readings.
Management said the shows were significantly better than those encountered in the nearby West Erregulla-1.
The company plans to complete drilling this section of West Erregulla-2, which includes the Basal Wagina conventional gas prospect, before running wireline logs to evaluate the hydrocarbon shows in the Lesueur, Woodada and Basal Wagina formations.
The company will then continue drilling to a total depth of 5,200 metres to intersect the primary target Kingia-High Cliff target, which has a similar size and nature to the major Waitsia gas field located about 16km to the west.
Waitsia operator Beach Energy is currently holding tenders for the engineering, procurement and construction of the second stage of that project.
Strike previously estimated that there is a 69% chance of success at Kingia-High Cliff and a 12% chance of success at the secondary Basal Wagina target.
These targets could host best estimate prospective gas resources of 916 billion cubic feet and 247 billion cubic feet, respectively.
West Erregulla-2 is located within EP469, which is held equally by Strike and Warrego Energy.
In the event of a successful gas discovery, Strike has a gas offtake agreement with major chemical manufacturer CSBP for the supply of between 80 petajoules to 100 petajoules of gas at a rate of up to 25 terajoules per day.
Strike Energy (STX)
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