Strike Energy (ASX:STX) is poised to participate in its first well to evaluate the gas and liquids potential of the coals and shales in the Southern Cooper Basin gas and liquids unconventional fairway.
The Marsden-1 well, operated by Beach Energy(ASX:BPT), is located in PEL 95 in the Battunga Trough and the Ensign Rig 918 is expected to spud it on 22 February.
Marsden-1 will be drilled to a total depth of 2640 metres to intersect 700 to 800 metres of Permian sediments including the Toolachee, the Roseneath, Epsilon and Murteree formations and the Patchawarra.
Strike said it was confident the liquids potential of the region, along with the lower cost of drilling and ready access to infrastructure, would result in a clear commercialisation path.
Marsden-1 will be followed by Strike’s second unconventional evaluation well Davenport-1 in PEL 94.
Both wells will provide data for Strike to refine the assumptions underlying its resource model and develop a forward exploration and production program.
Strike holds a 50% stake in PEL 95 and 35% in PEL 94. Both permits are operated by Beach.
The company had last month completed a successful entitlement offer of 1 new share priced at A$0.10 each for every 15 held to raise A$3.1 million.
This, together with an earlier A$2.5 million raising that brought its cash at hand at the end of December 2011 up to A$3.6 million, is enough to see the company through its estimated expenditure of A$5.77 million in the current quarter.