In August 2019, Strike Energy Limited announced it had made a major gas discovery with its West Erregulla-2 well. The drilling program intersected several gas reservoirs, including the Kingia formation, which showed a gross gas column of at least 97 metres. Subsequent flow testing of the Kingia sandstone delivered a flow rate of approximately 69 million standard cubic feet per day, through a two-inch choke and 700 PSIG wellhead pressure over a one hour period.
This outstanding discovery, from Australia’s deepest onshore gas well, confirmed Strike’s subsurface interpretation of a high-quality reservoir with excellent productivity.
Combined with what Strike expects are commercial discoveries in the High Cliff and Wagina formations, the company believes these resources have the potential to produce some of the lowest-cost gas in Australia.
The EP 469 Joint Venture (Strike is the Operator of the asset and holds 50 per cent interest, while Warrego Energy holds the other 50 per cent interest) is now currently undertaking further appraisal drilling in EP 469.
The West Erregulla Appraisal Campaign will see up to three appraisal wells be drilled in EP469. The appraisal wells will be drilled down to approximately 5,000 metres with West Erregulla 3 designed to test the continuation of the commercial gas accumulation in the northern fault block and West Erregulla 4 (and 5) to appraise the reservoir distribution in the central fault block.
After various coring and logging operations, all three wells will be flow tested (on success) and completed as future producers across the Kingia / High Cliff sequences for the proposed Phase 1 production operations. The Wagina gas discovery made in West Erregulla-2 will be appraised during the West Erregulla 4 and 5 wells.
Since the last update, Strike has landed and cemented the 20” casing in the surface hole down to the final section depth of 1,210 metres.
Since this time, Strike commenced drilling the 17.5” first intermediate hole section.
During drilling operations, the rate of penetration reduced significantly, and it was decided to conduct an inspection on the bottom hole assembly.
Upon retrieval to surface, it was discovered that the bottom hole assembly had parted just above the mud motor and the drill bit and motor remained in hole.
Subsequent fishing operations have reportedly been unsuccessful, and the decision was made to set a cement plug before side-tracking the well and drilling ahead.
Strike is running in hole with a new drilling assembly to complete the first intermediate hole section before running 13.38” casing and cementing in place.
The company states that the delays have been unfortunate, however, they are confident of rectifying the situation and resuming normal drilling operations.