Strike Energy (ASX:STX) has provided an update on production testing and drilling operations at the Southern Cooper Basin Gas Project in South Australia.
Operations in PEL 96 are continuing to schedule with production testing operations at Klebb 1 and Le Chiffre 1 underway.
Pumping operations at Klebb 1 commenced on Friday, 31 October with water production rates of up to 600 bbls of water per day being achieved during initial commissioning.
Water flow rates have steadily declined and a reduction in reservoir pressure has also been observed with increasing gas shows noted at surface.
As at 6am on 10 November, Klebb 2 had reached total depth of 2,115 metres and production casing has been run and cemented.
The well will now be completed for production testing.
Pumping operations at Le Chiffre 1 commenced on November 8 with commissioning ongoing. Gas shows have already been observed at surface.
Production testing will continue with water and gas flow rates and pressures observed.
Flow rates and pressure drawdown will continue to be conservatively managed to minimise potential for reservoir damage and ensure steady progress towards sustained gas flow at surface.
The early results are positive as STX has experienced lower volumes of formation water than anticipated and have already observed good gas shows at surface.
The next objective is to demonstrate sustained gas flows at surface over coming months.
Last month the company received a $5.8 million research and development tax rebate as it progresses towards the next stage of production testing at the Southern Cooper Basin Gas Project.
The company is already fully funded for its five well production testing program with $9.6 million in cash as at 30 September 2014.
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