Strike nails gas flow test in Perth Basin

Strike Energy has achieved some outstanding initial flow test results from the Kingia Sandstone formation at its West Erregulla 2 well in the Perth Basin, delivering 69 million standard cubic feet per day of gas via a 2-inch choke, with 700 pounds per square inch gauge wellhead pressure, over a period of one hour.

To put this into context, in November 2017, AWE Energy produced a flow test record from its Waitsia-4 well in the revered Waitsia gas field to the southwest, delivering an average of 89.6 mmscf per day on a 1.5-inch choke at about 2,395 pounds per square inch gauge flowing wellhead pressure, over a 23-minute duration.

That well was also located in the Kingia Sandstone formation.

Strike management said the testing program is designed to determine well deliverability with a series of flow tests at different choke settings, rates and wellhead pressures and collect gas samples to determine the composition.

The zone being tested within the Kingia Sandstone is between 4,799m and 4,951m deep, with 48m of perforations to tap the gas placed across this interval.

The company said that production is currently only limited by the surface equipment constraints which indicates that the gas reservoir has the potential capacity to flow at higher rates.

Strike said the multi-rate testing underway has exceeded initial expectations and provided further reservoir information that is consistent with other high rate North Perth Basin gas wells.

Managing Director and CEO Stuart Nicholls said: “The flow rate from the Kingia formation in West Erregulla 2 confirms our interpretation of a very high-quality reservoir with excellent productivity.”

“This result, along with the significant upside in the High Cliff and Wagina formations, increases the attractiveness of West Erregulla as the company progresses towards appraisal and development of these resources in the Perth Basin.”

“Flow rates of this nature supports Strike’s view that West Erregulla, as a function of its size and quality, may indeed produce some of the lowest-cost gas in Australia.”

Earlier this week, Strike provided a comprehensive operational update and strategy to begin unlocking value from the West Erregulla gas field, with a staged development schedule now laid out to accelerate cashflows and optimise capital expenditures, targeting production by early 2022.

The company said that an analysis of WA’s future gas market supports its view that it is well-positioned for several decades in the Perth Basin and that it will conduct a “high-impact” appraisal of the region, with an exploration campaign now being executed.

Strike is the operator and holder of a 50% interest in the prospective exploration permit EP469 that it holds in partnership with fellow, ASX-listed company, Warrego Energy.

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