Strike Energy Ltd (ASX: STX) has achieved yet another milestone, days after confirming significant gas discovery as part of the West Erregulla-2- drilling campaign. Initial data had shown that the Kingia formation had gas saturated with a net pay of 42 meters. Upon further analysis of the logs, gas saturation net pay has increased by 17 meters to 58 meters.
Kingia formation Gas Discovery
According to the managing director Stuart Nicholls, the Kingia gas discovery at West Erregulla-2 exhibits one of the highest quality gas finds in Australia. A 58 meters net pay essentially translates to the thickest net column within the historic Waitsia gas field
Prior to the latest discovery, Strike Energy had encountered 4,753 meters with gas on a rock at the Kingia formation. Gross column of at least 97 meters all but validated the company’s exploration efforts. A 67-meter section of the formation also proved to poses an average porosity of 14.3% that can peak to highs of 19%.
“This is truly an exceptional outcome. The Kingia results at West Erregulla have exceeded Strike’s highest expectations and indicate a significant discovery’ that appears to have higher reservoir quality than the Waitsia gas field. With West Erregulla-2 now being one of the deepest wells ever drilled onshore Australia and finding such excellent quality sandstone reservoirs, the subsurface paradigms of the Perth Basin are shifting,” said Mr. Nicholls.
In addition, the Kingia gas discovery boasts of pressures of between 6,814 and 6,828. The high pressure suggests a possible column height of 220 meters. According to the managing director, the high reservoir pressures signal significant recoverable gas resource. Analyzed samples have so far shown primary components contain as much as 92% methane and 5.8% CO2. The gas composition signals a potential low-cost gas development in line with previous discoveries within the Perth Basin.
High Cliff Sandstone Gas Discovery
The Kingia gas discovery builds on a similar discovery that the Strike-Warrego joint venture made in the High Cliff sandstone as part of the West Erregulla-2 drilling. At the High cliff formation, the joint venture encountered 4,918 meters made up of a gross gas column of not less than 22 meters. Initial studies indicate that the 22-meter section might be gas saturated with a net pay of 10 meters.
“The addition of yet another material gas discovery in the West Erregulla-2 drilling campaign makes this a truly outstanding result for the well. The High Cliff sandstone quality at West Erregulla is comparable to the High Cliff in the Waitsia-1 well, which flowed 25 mms/d when tested. The High Cliff results are in line with Strike’s expectations and indicate a discovery with a significant areal extent that can be delineated on 3D seismic,” stated Mr. Nicholls
Strike Energy has enhanced drilling operations at the remaining High Cliff formation as it eyes the Hollywood Shale. Further drilling should allow the company to create pocket needed to place wireline logging tools as part of an effort of capturing additional data from the formation.