Ann: Southern Cooper Basin Operations Update,EWC-STX.AX, page-2

The Company Announcement Officer ASX Ltd
via electronic lodgement
SOUTHERN COOPER BASIN GAS PROJECT
OPERATIONS UPDATE
Sustained 25% increase in Klebb 3 productivity achieved
Klebb 4 frac successfully completed
Strike Energy Limited (ASX:STX) (“Strike”) is pleased to provide an update on operations at its Southern
Cooper Basin Gas Project in PEL 96 (Strike 66.67% and Operator, Energy World Corporation (ASX:EWC)
33.33%).
Klebb Production Test Update
Production testing continued until June 15th when the wells were shut in ahead of Klebb 4 fracture
stimulation and flow back operations. Testing of Klebb 2 and 3 recommenced over the weekend with
Klebb 1 to restart in the near term.
The performance of the wells since recommencement of testing has been consistent with previous
production ramp ups and we have been particularly pleased with the substantially improved
productivity of Klebb 3.
At Klebb 3, the current water production rate of around 550 bwpd compares to water rates of ~450
bwpd pre‐workover, a 20‐25% improvement in productivity.
The sustained increase in productivity at Klebb 3 is typical of the performance of many highly
productive fields and is very encouraging. These higher water rates imply that the well is depressuring
a larger volume of coal, which will lead to higher gas rates than those previously achieved
as the coal approaches critical desorption pressure. The upgraded pump systems are operating well
and have sufficient capacity to handle increased water rates.
Based on the success of the Klebb 3 workover and downhole jet pump equipment upgrade, planning
is now underway to implement the same modifications at Klebb 2.
Klebb 4 fracture stimulation
The Klebb 4 fracture stimulation has been pumped and the well is flowing back unassisted. The electric
submersible pump (“ESP”) and control systems will be installed once the well has cleaned up with
commissioning and extended testing on track to commence in early July.
21 June 2016
ASX Announcement
Strike Energy Limited ABN 59 078 012 745 P: +61 2 9397 1420 120B Underwood Street, Paddington NSW 2021
www.strikeenergy.com.au E: [email protected]
Managing Directors Comment
“The productivity improvements we have seen at Klebb 3 and the fact that we have now successfully
completed 7 fracs in the Patchawarra coals are important milestones ‐ they’re further confirmation of
our confidence in the long term productive capacity of the field and our ability to commercialise it.
We are looking forward to having all four Klebb wells working together to accelerate progress towards
commercial gas flows.”
Yours faithfully
DAVID WRENCH
Managing Director