Strike Energy has advised, on behalf of its joint venture partner Warrego Energy, that it has completed drilling of the first intermediate hole section down to 2462 metres measured depth at West Erregulla 3 well, Western Australia.
The company reported that an earlier casing point was selected to provide additional contingent rig mast capacity, with the running casing section set to the aside-tracks to resolve the previous drilling issues.
Strike has subsequently run the casing to depth without issues and has cemented it in place.
Prior to reaching the amended casing point, hydrocarbon shows were observed in the upper Cattamarra coal measures, which is consistent with Strike’s geological models and is analogous to observations seen in the West Erregulla 2 well.
Looking ahead, the company will now commence drilling the second intermediate 12.5-inch hole section and continue down to a depth between 3750m and 4150m.
Strike believes it has identified the main causes of the previous drilling assembly failure and has taken steps to correct and mitigate any future occurrences.
It is anticipated that the rate of progress of the well should now increase due to these mitigation measures in combination with the smaller hole size in this section of the well.
In addition, Strike has secured a deal with Macquarie Bank to provide funding for the development of the West Erregulla phase one gas project in onshore Western Australia.
The company has now executed the definitive documentation for up to $28 million secured debt facility with Macquarie, pending Strike securing senior project financing for phase one.
The debt facility will provide funding to cover appraisal drilling and long lead items for the development of the West Erregulla project.
The West Erregulla appraisal campaign includes the drilling of three wells in the EP469 permit.
For more information subscribe to PPO.