Strike Energy (ASX: STX) and Energy World Corporation (ASX: EWC) have intersected a thicker than expected 85 metres of coal at their Le Chiffre-1 gas exploration well in the Cooper Basin, South Australia.
Elevated gas readings were recorded across all coal intervals with gas concentration increasing with depth as expected.
Planning is now underway for a pilot production testing program.
This will be supported by further logging, testing and analysis of the Le Chiffre well together with the results from the next well to be drilled in the program, Klebb-1.
Le Chiffe-1 is located about 4 kilometres east of the Moomba to Adelaide Pipeline and is the first well in the current drilling program at the Southern Cooper Basin Gas Project.
Strike has a binding term sheet to supply Orica (ASX: ORI) with up to 150 petajoules of gas over 20 years from PEL 96 in the Cooper Basin.
PEL 96 has estimated prospective resources of between 2.7 trillion cubic feet and 6.3Tcf of gas net to Strike, which holds a 66.67% operating interest. EWC holds the remaining 33.33%.
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