Strike Energy (ASX: STX) has spudded its Wolters-1H well in Texas that targets the gas and condensate in the highly prospective Eagle Ford Shale.
Wolters-1H in the Cypress Eagle Ford Shale Joint Venture in Lavaca and Fayette Counties will be drilled to a vertical depth of about 12,850 feet before a 6,000 foot lateral is drilled and cased in the Lower Eagle Ford Shale.
A multi-stage fracture stimulation program will then be undertaken and the well will be completed for production testing.
Wolters-1H is the third well the company is currently participating in. The second is also located in the Eagle Ford while the last is Shell’s Palta-1 well in the Carnarvon Basin offshore Australia.
Its share of costs for Wolters-1H is funded by the non-recourse production payment funding facility provided by BlueRock Energy Capital announced on 23 May 2013.
The facility is available to fund drilling and completion costs of the Eagle Ford Shale and Permian Basin wells planned for 2013 up to an initial limit of US$6 million with an option to increase the facility to US$8 million.
The facility will be repaid via a revenue interest in the company’s producing wells.
Strike has 10,680 net acres in the Eagle Ford where recent on-trend results from offset operators are de-risking the play.
With the next phase of evaluation of the US assets underway, the company’s resources are now fully directed to progressing the Southern Cooper Basin Gas project.
This covers 927,037 net acres and has estimated recoverable prospective gas resource of between 6 trillion and 16 trillion cubic feet of gas net to Strike.
The project also has direct pipeline access and in the event of an exploration success, has a rapid appraisal and development timeline.
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