The Strike Energy Ltd (ASX: STX) share price is charging higher on Tuesday morning.
At the time of writing, the oil and gas exploration and development company's shares are up 3% to 35 cents.
This means the Strike Energy share price is up 20% in 2021.
Why is the Strike Energy share price charging higher?
Investors have been bidding the Strike Energy share price higher on Tuesday after it provided an update on its domestic gas business in the Perth Basin.
According to the release, this business is set for a potential series of transformational results in the second half of the year. Management notes that its multi-well Perth Basin program is targeting ~1,800 PJe of prospective conventional gas resources over the second half of 2021.
In addition to this, this the company is expecting the South Erregulla-1 well to spud in October, using one of the three Ensign 970 rig slots that Strike procured on favourable terms during the industry downturn in mid-2020.
It notes that South Erregulla represents potentially significant near-term multi-trillion cubic feet (TCF) upside for Strike. Furthermore, it has been materially de-risked through the West Erregulla exploration and appraisal campaign. This could bode well for the Strike Energy share price in the future if all goes to plan.
Strike Energy's Managing Director and CEO, Stuart Nicholls, is very positive on the second half.
He said: "Strike is now set to start this exciting and potentially transformational phase of its Perth Basin gas resource growth strategy. Extending the Permian Gas Fairway down to South Erregulla and reinjecting new value into the Jurassic wet gas play in the South will, on success, have cascading effects across the value of all of Strike's adjoining acreage in the Basin."
"At the conclusion of this program, Strike aims to be in a position to support the development of its fertiliser project at Project Haber, which is a key pillar of its Net Zero 2030 target, and to take advantage of the tightening WA domestic gas market conditions expected in the mid part of the decade," he added.
Based on the current Strike Energy share price, the company now has a market capitalisation of ~$700 million.
