Strike Energy (ASX: STX) should trade higher after advising that its South Australian based Southern Cooper Basin Gas Project appraisal drilling program has been successfully completed.
The results obtained from the Le Chiffre 1 and Klebb 1 wells have materially de-risked key parameters underpinning project resource and cost estimates ahead of the next stage of the project’s commercialisation.
The Klebb 1 well was drilled to a total depth of 2,193 metres and cased using premium casing to allow for future fracture stimulation and flow testing.
Wireline logs have shown over 145 metres of net coal was encountered in the well.
In particular, 89 metres of coal was observed in the Patchawarra Formation, including one continuous 34 metre thick seam and two other seams each over 15 metres thick.
Notable increases in gas readings were recorded while drilling through coals encountered in the well, and the increase in gas readings with depth was consistent to that observed in the Le Chiffre 1 well.
Target coals encountered at Klebb 1 are 35% thicker than at Le Chiffre 1 and confirm the presence of a substantial, continuous gas resource directly under the Moomba to Adelaide gas pipeline.
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