Southern Cooper Basin Pilot testing at Jaws continued with production rising up to a daily average of approximately 40 mscf/d. The bottom hole pressure has been drawn to 209 psig, which has seen instantaneous gas rates of >100 mscf/d with water remaining stable at approximately 300 bbls/d. A major inflection point (or exponential increase) in the rate of gas production is yet to be achieved, however Strike continues to believe this will occur once a sufficient amount of coal is brought into the critical desorption window. An increase in annulus pressure at the vertical intercept well during Q4/19 is evidence of improving downhole conditions. Whilst taking longer than anticipated, the controlled drawdown is progressing well with uptime of the pumping operations remaining high. Strike will continue the production pilot into the first half of 2020 until either commercial gas rates are achieved or water production declines without a commensurate increase in the gas flow rate.
STX Price at posting:
17.5¢ Sentiment: Hold Disclosure: Held
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