Strike Energy (ASX: STX) has said its Marsden-1 exploration well has confirmed the unconventional resource potential of the southern Cooper Basin.
Preliminary mud and wireline log data has indicated the well in PEL 95 had intersected coal and shale thicknesses that match or better pre-drill expectations and exceed the values used in the company’s resource model.
Marsden-1 had penetrated over 800 metres of Permian sediments including thick sections of the target Toolachee; Roseneath, Epsilon and Murteree; and Patchawarra formations. It had originally been expected to intersect 700 to 800 metres of these sediments.
Elevated gas readings – including the presence of heavy hydrocarbons – were recorded across the target coal and shale formations while cores and cuttings have also been sent for detailed laboratory analysis.
These suggest a potential liquids rich resource that would enhance the economics of any development.
The company added the Marsden-1 well log data appears consistent with Senex Energy’s recent announcements in relation to the Vintage Crop 1 and Sasanof 1 unconventional wells in PEL 516, immediately to the north of PEL 95, which indicate that the southern Cooper Basin could host a major unconventional gas resource with liquids-rich gas potential.
Strike has cased and suspended the well for future testing and will move the Ensign Rig 918 to drill its second unconventional evaluation well, Davenport-1, to test the Milpera Trough in PEL 94.
It had previously estimated that a resource of up to 6 trillion cubic feet could exist in the area and said 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.
Strike has a 50% stake in PEL 95 while Beach Energy (ASX: BPT) holds the remaining interest.