Strike Energy paves the way to bring Jaws coal seam gas project online

Strike Energy ASX STX Jaws Southern Cooper Basin Halliburton drilling
Drilling contractor Halliburton conducting the Jaws-1 fracking program at Strike Energy's Southern Cooper Basin gas project.

Unconventional gas explorer Strike Energy (ASX: STX) has completed a multi-stage fracture stimulation program at its Jaws-1 coal seam gas project in South Australia, paving the way for the project to come online next month.

The fracking program comprised seven stages, including five of the first indirect vertical fractures to ever be executed in Australia.

This innovative indirect vertical fracture (IVFC) technique utilises gravity-assisted drainage of the reservoir and is fast becoming a popular method in the US shale gas industry.

Strike reported today that all seven stages program were fully completed placing targeted proppant quantities, with the final two stages placing more than 150,000lbs (68,039kg) per stage. A proppant is a solid material (usually sand) used to keep a hydraulic fracture open.

According to the company, all fractures had “excellent fracture height growth” through the targeted Vu Upper coal and penetrated extensively in a perpendicular direction to the well bore path.

Strike is now analysing the microseismic and tiltmeter data with plans to update the market on the total volume of stimulated coal.

It is also carrying out clean-out operations with coiled tubing at the Jaws-1 well site before flowback will commence.

This will be followed by running the electric submersible pump completion and connecting surface equipment, with the Jaws project expected to come online in “early to mid-July”, Strike stated.

The Jaws project lies within the larger Southern Cooper Basin project, which is 66.67% owned and operated by Strike. Energy World Corporation holds the remaining 33.33% interest in the project.

Strike has gas sales deals in place for about 122 petajoules of gas from the project and upon commercial delivery, the company plans to pipe about 50 terajoules per day to the Santos-operated Moomba gas processing plant before it is delivered to the east coast gas market.

“With the upcoming completion of the Jaws-1 project, Strike has brought all the necessary ingredients in order to test the commercial quality of the Southern Cooper Basin gas project,” the company stated.

Shares in Strike jumped up 26.67% to A$0.095 on the news by late morning trade.

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