The Strike Energy Ltd (ASX: STX) share price is 2% lower at 28 cents today despite the gas explorer boasting of more "outstanding" flow test rate results at its West Erregulla 2 gas fields.
Strike is in a half/half joint venture with Warrego Energy Ltd (ASX: WGO) in exploring and developing the Wagina, Kingia and High Cliff sandstone gas deposits located at West Erregulla near Perth WA.
After making the discoveries the companies and shareholders have nearly run out of superlatives in describing their quality, with shares in both businesses going gangbusters.
Today management updated on the estimated gas flow rates from the Kingia field.
According to the announcement: "A flow rate of approximately 69 million standard cubic feet per day of gas was achieved through a 2-inch choke with 700 pig pressure over a 1 hour period."
Strike's CEO remains in ebullient form claiming the finds could produce some "of the lowest cost" gas in Australia thanks to the outstanding flow rates, size and quality.
As at September 30 Strike was debt free with cash on hand close to $6 million. It is estimating $4.9 million in net cash outflows over the current quarter. As such it looks likely to have undertake some capital management initiatives soon.
Warrego just raised $12 million via the placement of 41.4 million shares at 29 cents per share. It's likely to disclose an updated capital position soon as part of its 4C quarterly reporting obligations.
