The Strike Energy Ltd (ASX: STX) share price flew at the market open today, trading 3% higher. At the time of writing, the share price has retreated to 32 cents, up 1.59%.
The positive movement comes after the company gave another update on its joint-venture gas field with Warrego Energy (ASX: WGO). Currently, shares in the company are trading for 32 cents each. By comparison, the S&P/ASX All Ordinaries Index (ASX: XAO) is up 0.18%.
Let's take a closer look at some of Strike's latest ventures.
The West Erregulla gas field
The Strike Energy share price is up today. In a statement to the ASX, Strike provided another update on its West Erregulla gas field. Indeed, this is the fourth update on the site provided to the ASX this month. However, this announcement relates to the appraisal process of the gas field.
On current operations, Strike Energy states:
Since the last update, Strike has continued drilling operations…[in] the high-quality section of the primary target in the early Permian Kingia Sandstone. Strike believes it encountered the top of the Kingia Sandstone at approximately 4,870m. Strike has successfully passed through the Carynginia Shale and Irwin River Coal Measures, where gas shows were observed throughout.
According to the statement, in the immediate term, Strike Energy intends to begin drilling and extraction at the well. Investors are obviously taking the news well, and it reflects in the Strike Energy share price.
Notably, the West Erregulla gas field contains approximately 1.6 trillion cubic feet of gas.
Strike Energy awarded Perth Basin block
In other recent developments, Strike also announced it was the successful bidder for the "highly prospective" Perth Basin block. The block is located at the southern end of the gas basin. Two natural gas pipelines already run adjacent to the block, on either side of it.
It is surrounded on all sides by other gas fields, including West Erregulla. The Iluka Resources Limited (ASX: ILU) Eneabba mineral sands and rare earth mine is also located nearby to the site. Strike believes the miner could be a potential energy customer if there is a successful discovery.
Speaking on the news, Strike Energy managing director and CEO, Stuart Nicholls, said:
The award of this exciting acreage is an acknowledgement of Strike's developing position in Western Australia as a future domestic energy and fertiliser supplier.
The addition of this block almost completes the connection of Strike's acreage, making a contiguous land holding from North to South. This position in the Basin is adjacent to the North/South extensional faults which provide the primary route for hydrocarbon migration across the basins various plays.
Strike Energy share price snapshot
Over the last 12 months, the Strike Energy share price has appreciated 204.76%. Its current share price is only slightly lower than its 52-week high of 35.5 cents. That record was achieved in January this year.
The gas producer has a market capitalisation of $551.2 million.
