Strike Energy (ASX:STX) share price see-sawing today

What’s going on with Strike Energy today?

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The Strike Energy Ltd (ASX: STX) share price is edging lower today in afternoon trade. This comes after the company’s shares were up in the green earlier today. At the time of writing, Strike Energy shares are down 1.54% at 32 cents a share.

That is in contrast with the S&P/ASX 200 Index (ASX: XJO). The ASX 200 is currently up 0.87% today to 7,337 points so far.

So what’s going on with Strike Energy today?

Well, earlier today, Strike Energy released an announcement before market open.

In this announcement, Strike advised that it has “completed production testing” at its West Erregulla 4 (WE4) well. The results from this testing “demonstrate similar productivity characteristics consistent with the regional Permian gas fairway wells from Waitsia and Beharra and supports the progression of the Phase 1 development“.

Strike also told investors that “gas sample analysis indicates WE4 has a similar gas composition to the WE2 well“. Going forward, the WE4 well will now be shut in order for Strike to “observe a long-term pressure buildup”, before it moves on to the next stage of development.

This announcement comes after a well-received update last week, which provided an update on Perth Basin gas projects. This includes a management target of developing Strike’s multi-well Perth Basin. Strike is now eyeing ~1,800 petajoules of prospective conventional gas resources for these projects over the second half of 2021.

About the Strike Energy share price

Despite the current share price, Strike Energy has been a very solid performer for investors over the past few years. The company is now up 14.5% year to date in 2021 so far, and up 66% over the past 12 months. It’s also up a very pleasing 201% over the past 5 years.

On the current Strike Energy share price of 34 cents a share, the company has a market capitalisation of $659.1 million.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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