Strike Energy has increased its economic interest in the West Erregulla gas project to 54 per cent via the acquisition of an 8.16 per cent strategic stake from Warrego Energy.
The company believes that as a consequence of the exploration, appraisal and development activities to date, EP469 and the West Erregulla gas project have material long-term value.
Increasing Strike’s exposure to these assets is consistent with the strategy to generate value from the Perth Basin.
In the company’s recent capital raise it indicated a portion of the use of funds was for business development activities.
However, the investment is subject to Strike remains fully funded to deliver against its existing development, exploration and appraisal programs in the second half of this year.
This follows the company announcing it has completed production testing at the West Erregulla 4 well (WE4) in Western Australia.
A series of flow tests were performed at various choke settings to enable characterisation of the well deliverability parameters, with the company confirming high productivity of the Kingia Sandstone.
The primary flow period was conducted over a 46-hour period at a rate of 35 mmscfd through a 76/64-inch choke, with 1770 psi flowing tube head pressure.
Gas sample analysis has indicated WE4 has a similar gas composition to the WE2 well, with WE4 also producing a small amount of regionally anomalous low salinity water whilst on test.
The company expects to be in a position to confirm this on flow testing of the WE5 well, which is planned to commence later in July.
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