Perth Basin News, page-2

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.