Gas may be in sight for Strike Energy’s appraisal well
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Strike Energy (ASX:STX) has received an early hint that its West Erregulla-3 well in WA, which is testing the northern fault block for a continuation of the commercial gas accumulation discovered by West Erregulla-2, may be right on the money.
Hydrocarbon shows were observed throughout the shallower Cattamarra Coal Measures and Eneabba and Lesueur Sandstones.
While it is still too early to determine the significance of these shows – as they do not provide any data on porosity or permeability that would impact on a reservoir’s ability to flow commercially – the presence of hydrocarbons supports the company’s geological models and are analogous to observations seen in its discovery well.
Strike is now moving to carry out wireline logs throughout this section that will give it further data.
Once this is completed, the company will start drilling the final section of the well that is expected to intersect the primary target Kingia and High Cliff sequences.
In the event of a success, West Erregulla-3 will be completed as a future gas producer.
Strike and Warrego Energy’s (ASX:WGO) West Erregulla-2 discovery flowed 69 million standard cubic feet of gas per day from the Permian Kingia and High Cliff targets, confirming the onshore Perth Basin as being highly prospective for deep gas.
While West Erregulla-3 is testing the northern fault block, it will be followed by the West Erregulla-4 and West Erregulla-5 wells that will appraise the reservoir distribution in the central fault block.
The two companies have also committed to the development of an 80 terajoule per day Phase 1 plant to process gas from the West Erregulla field.
This is subject to a final investment decision that will be made before the end of the first quarter of 2021 after the drilling, testing and evaluation of the West Erregulla-3 and possibly West Erregulla-4 appraisal wells.
Gas sales from West Erregulla could begin as soon as mid-2022.