Strike Energy Continues Drilling at West Erregulla-2

THE BOWSER: Strike Energy (ASX: STX) provided an update on drilling of the company’s West Erregulla-2 oil target.

Strike Energy is drilling West Erregulla-2 in EP 469, which is adjacent to and targeting analogous Permian gas sands of a similar size and nature as the Waitsia gas discovery.

The company plans to frill to a total depth of 5,200 metres and penetrate a further two independent reservoir targets.

These include a conventional gas target in the Basal Wagina sandstones and the primary gas sand sequence in the Kingia High Cliff.

Strike Energy has continued to drill the first intermediate section with the hole currently nearing section TD.

The company said its rate of progress has improved over this section during the under-reaming and the well remains on schedule and within budget.

During the latter part of drilling this section Strike passed through the tertiary Cattamarra oil target.

The company said that although hydrocarbon shows and elevated mud gas readings (including all heavy hydrocarbon components) were evident at the prognosed depth, it considered these were insufficient to warrant the running of advanced wireline logging and testing.

The company said the hydrocarbon shows are supportive of the Cattamarra geological model in this low POS target, and will strongly assist in calibrating the amplitude response to both hydrocarbons and good quality reservoir for future Cattamarra activities.

Looking ahead, Strike will complete drilling the hole section towards the nominal 2,550m TD or when suitable 11-3/4” casing setting formation is intercepted allowing casing to be run into hole and cemented in place at section TD.

Strike will begin drilling a second 10-5/8” intermediate section to a nominal 4,230m.

The Basal Wagina, a secondary conventional gas prospect, will also be intercepted in the next section.

Strike Energy is the operator and the holder of a 50 per cent Joint Venture interest in EP469, and Warrego Energy (ASX: WGO) the holder of the other 50 percent JV interest.