Strike to evaluate hydrocarbon shows in Perth Basin

Strike Energy is preparing to carry out wireline logging at its multi-target West Erregulla-2 well in the Perth Basin, Western Australia, that had flowed gas to surface earlier this month from the Basal Wagina formation.

The company continues to observe strong gas shows and evidence of Wagina sands in the cuttings while drilling the well to a depth of 4,229m in the second intermediate hole section.

Strike has mobilised the wireline unit and a range of logging equipment to site and will now start the evaluation of the second intermediate section.

Wireline logging will assess the Basal Wagina, a secondary target at the well, which flowed sufficient gas to light the flare on the rig and prevent further drilling until the weight of the mud system was increased to subdue the formation.

The company will also evaluate the shallower Lesueur Sandstone and Woodada Siltstone formations, which demonstrated better hydrocarbon shows to the corresponding shows in the nearby West Erregulla-1 well.

Once logging and evaluation are completed, Strike will then run casing in the hole and drill ahead to the total depth of 5,200m to intersect the primary target Kingia-High Cliff target, which has a similar size and nature to the important Waitsia gas field located about 16km to the west.

The Waitsia joint venture of Beach Energy and Japan’s Mitsui E&P Australia recently approved the expansion of the Xyris facility, which processes gas from the Waitsia field, from the existing 10 terajoules per day capacity to 20 terajoules per day to satisfy their gas sales agreement with Alinta Energy.

Likewise, Strike has a gas offtake agreement in place with major chemical manufacturer CSBP for the supply of between 80 petajoules to 100 petajoules of gas at a rate of up to 25 terajoules per day.

West Erregulla-2 is located within EP469, which is held equally by Strike and Warrego Energy.