In joint venture with Warrego Energy (ASX: WGO), Strike Energy (ASX: STX) revealed this morning gas had been discovered in the Wagina sandstone, which forms part of the West Erregulla-2 drilling campaign.
Strike noted the Wagina reservoir characteristics appeared “good quality” and the Wagina sandstone was about 74m thick and made up of sections of clean sand with blocky porosity development.
During drilling, hydrocarbons were observed to be present throughout the 74m thick interval which extended from 4,106m to 4,180m.
According to Strike, while drilling, a sudden influx of over-pressured gas had been encountered – “exceeding” the joint venture’s expectations.
“This is a significant discovery and comes from a secondary target, which carried a low pre-drill probability of success,” Strike managing director Stuart Nicholls said.
“Importantly, it provides further confidence in Strike’s predictions of good porosity development within Permian reservoirs being possible at depths greater than that of Waitsia and to the south-east.”
“With good porosity trends continuing with depth, Strike believes that it is on track to find a good quality reservoir within its primary target in the Kingia-High Cliff,” Mr Nicholls added.
Operator of the 50:50 joint venture with Warrego, Strike is drilling West Erregulla-2 to a planned depth of 5,200m and is targeting conventional gas in the Basal Wagina sandstone and the primary gas sequence in the Kingia High Cliff.
Within the Wagina sandstone discovery, gas that flowed to surface during drilling was diverted to flare.
By section TD of 4,229m, the well is yet to show any signs of water saturation.
Strike noted the combination of observed gas at high pressure and good reservoir characteristics shored up the potential for high flow rates on a production test.
A contingent resource will be subject to a flow test on the Wagina sandstone in the future.
Last week, Strike reported initial gas had surfaced while drilling West Erregulla-2.
The well’s gross prospective resource of 1.162 trillion cubic feet of gas positions it as one of Australia’s largest pre-drilled conventional onshore prospects.
This morning’s gas discovery news spurred Strike’s share price up 24% to trade at $0.155 mid-morning.
Warrego’s share price lifted even further – up 35.29% to $0.23 during the same period.