Oil and gas explorer Strike Energy (ASX: STX) has announced increasing gas flows from its coal seam gas well at the Southern Cooper Basin gas project onshore South Australia.
The company reported its Klebb-1 well, which was recompleted in October to access the Vu Lower coal seam, was performing steadily with consistent water rates and increasing gas rates.
In early November, Strike reported intermittent gas from comingled (fluids from two or more separate zones) flows from the Vu Upper and free gas from the Vu Lower coal seams. Dewatering operations continued until water rates increased to 250 to 300 barrels per day and pumping efficiency improved.
Since the water levels were drawn down slowly, gas desorption occurred indicating a gas content of at least 6.1 cubic metres per tonne.
According to Strike, the steady drawdown of the water column showed these reservoirs performed and behaved like other traditional coal seam gas projects.
“From this test, Strike has yet again proven that the coal can be brought down and held at desorption pressure over time with the correct selection of artificial lift technology,” the company stated.
Strike said well testing would continue with the aim of achieving technical success in the Vu Lower coal seam.
Southern Cooper Basin Gas Project
The Southern Cooper Basin gas project is made up of three petroleum exploration licences. Strike is the operator and holds a 66.67% stake in PEL 96, containing the Klebb wells. Energy World Corporation Limited holds the remaining third of the interest.
The other two licences in the project are operated by ASX-listed Beach Energy, with Strike holding 35% and 50% interests.
At the start of this month, Strike announced it had entered into a drilling and fracking contract with multinational oilfield services expert Halliburton for the Jaws-1 well, which lies within the Klebb appraisal area on Strike’s operated permit.
Last week, the company reported that bulk civil works had been completed and the Jaws-1 project was moving into the execution phase, which would involve appraisal drilling and a seven-stage fracture stimulation program.
According to Strike, the Jaws-1 well is one of the most technologically advanced coal seam gas wells ever drilled.
The company said it expected to be in a position to declare commercial success over the resource off the back of a successful appraisal, and potentially convert its existing resource to a reserve. This result would then trigger a decision on the development of the project.