Energy: Strike & Warrego’s well now Australia’s deepest onshore well & even peers enjoy its gains
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Strike Energy (ASX:STX) has declared to shareholders it now has Australia’s deepest onshore well ever drilled. Drilling at West Erregulla 2 has surpassed 5,000m.
The well is owned by a joint venture between Strike and Warrego Energy (ASX:WGO) and results have sent both stocks up substantially in recent weeks.
Strike’s gain of 9.1 per cent was hardly earth shattering but all up it is now five times higher at 30c. Warrego has almost matched Strike’s rise, increasing from 8.3c to 39.5c in two months.
Strike told shareholders it would continue drilling the well until it reached the Holmwood shale. In its drilling a ‘pocket’ will be created to allow wireline logging tools to capture data more effectively.
The well is now even benefiting Strike and Warrego’s peers as well. Key Petroleum (ASX:KEY) made an announcement on Friday about its own gas plays immediately north and west of Strike’s permits.
It told shareholders, based on the results as well as its own research, the reservoir prospective fairway was regionally extensive.
Pilot Energy’s (ASX:PGY) gains without news last week led to a price query from the ASX. It’s explanation was Strike’s recent discoveries at West Erregulla. Pilot gained another 44 per cent this morning.
Queensland coal seam gas explorer Galilee Energy (ASX:GLL) revealed it had reached a tipping point in its operations at Glenaras. Casing pressure has now built up to the point where gas has begun flowing. The wells were flowing water at approximatly 6,800 barrels of water per day, but the water flow was now levelling off. Managing director Peter Lansom said the results were “extremely encouraging”.
Byron Energy (ASX:BYE) also updated shareholders on its recent operations. It revealed it had been a difficult few days for the company. The well conditions at 10,825 feet (measured depth) were that tight, the hole opener became stuck. Byron was unable to free the drill pipe and decided to re-drill the bottom 900 feet of SM58 001.
ADX Energy’s (ASX:ADX) well in Romania has reached a depth of 2,342m. The well has been cased and cemented. It will also be integrity tested prior to further drilling.