Energy: Is Strike and Warrego about to blow the lid off West Erregulla?
Link copied to
Anticipation is building for Strike Energy (ASX:STX) and Warrego Energy (ASX:WGO) as they inch their way closer to the target formation at West Erregulla-2 in the Perth Basin.
Operator strike told the market this morning that it had reached the formation and was halfway through, but the good stuff is towards the bottom of the formation.
The well is being drilled to target the same formation that delivered AWE Limited a flow rate of 90 million cubic feet of gas per day back in 2014 from Waitsia-4.
It also delivered a nice little payday, as it was sold off to Mitsui for $600m in 2018.
Should West Erregulla-2 be successful it would go some way toward proving up a regional play from the Kingia Sandstone — with any gas able to be routed to the Dampier-Bunbury pipeline.
But, it’s not quite there yet.
Strike said while drilling down through the upper Kingia it did encounter multiple drilling breaks, with associated elevated mud gas readings.
Meanwhile, cutings came back with chlorite and illite — which the company thinks is a good sign as these elements are usually associated with good porosity.
It should be able to drill through the lower Kingia soon, but it’s now pausing to attach a new drillbit before doing so.
Alaska-focused 88 Energy (ASX:88E) has entered into an agreement covering the western play fairway of its conventional ground at its Icewine project. Premier will farm in for a 60 per cent operating stake in exchange for spending up to $US23m ($34.03m) on Charlie-1.
It’s being drilled to follow-up on a discovery made in Malguk-1. The well will be drilled and tested in the first quarter of next year.
American Patriot Oil & Gas (ASX:AOW) has blamed an “administrative oversight” for not paying its listing fees. It said it should be able to pay the fees today and avoid delisting, but it’s not the only issue it’s working on. It said that agreement had been reached with some shareholders over the overallocation of shares last year, and that a formal review of the books is progressing well.
Earlier this year the company launched an investigation into how the previous board dealt with acquisitions and rights issues through its books — to make sure the accounts presented to shareholders were a true and fair reflection of its position. In more positive news for the company, it told shareholders that it managed to produce 2,987 barrels of oil and 2.7 million cubic feet of gas for the month of June.