Strike Energy Ltd (ASX: STX) shares are edging lower on Monday. At the time of writing, the Strike share price is trading 1.39% lower at 35.5 cents.
Below we look at the latest update from the ASX energy company.
What did Strike report?
The Strike Energy share price is falling during Monday trade after the company updated the market on the gas resource at its West Erregulla 5 (WE5) well. The announcement was on behalf of its EP469 joint venture.
Strike owns and operates a 50% joint venture interest in EP469. Warrego Energy Ltd (ASX: WGO) holds the other 50% interest.
According to the release, Strike has finished drilling the well to 5,015 metres, with the final depth reached in 38 days. Through its use of logging-while-drilling tools, Strike has acquired wireline logs to "confirm the reservoir and resource characteristics" of the drill sites.
Strike said that its initial Kingia results confirmed the presence of a "large high quality gas resource" at West Erregulla, in line with expectations. The company reportedly struck the Kingia formation at a depth of 4,771 metres, significantly shallower than expected.
The company said:
Gas was observed throughout the Kingia which was measured with a high gas saturations and is interpreted to have a net pay of 32 metres, with an average porosity of 10% across this section and porosities up to 15%. Strike interprets the Kingia reservoir as an above average play across the numerous discoveries at Waitsia, West Erregulla, and Beharra.
Looking ahead, Strike said it plans to conduct further wireline logging to acquire fluid samples and pressures across the various formations it is drilling. Once the final production casing string is cemented in place, it intends to keep the well on inventory for "Phase 1 development as a future producer".
Strike Energy share price snapshot
Over the past 12 months, Strike Energy shares have gained 69%. By comparison, the All Ordinaries Index (ASX: XAO) is up 23% over the same period.
Year to date, the Strike Energy share price has continued to outperform, up 24.6% so far in 2021.
