The Strike Energy Ltd (ASX: STX) share price is gaining today after the company released an update on its Mid-West Geothermal Power Project.
Strike stated the project's potential geothermal power could make a big impact on Western Australia's decarbonisation agenda, zero-carbon electricity supply, and its future hydrogen economy.
Strike is also considering ways to use the residual waste heat from the project's working fluid. Some potential uses include reverse osmosis and purification of some of the project's geothermal fluid or electrolysis for green hydrogen production.
Right now, the Strike Energy share price is 28 cents, 1.85% higher than its previous closing price.
Let's take a closer look at today's news from the explorer and developer of oil and gas resources.
Strike's project update
The Strike Energy share price is in the green following news of its zero-carbon Mid-West Geothermal Power Project.
The company had previously placed 12 heat needles into the Perth Basin project to map surface thermal gradients. Today, the company announced the resulting data will begin to be processed before it's used for the project's reservoir model.
Following the needle survey, Strike can apply for a Geothermal Exploration Permit (GEP). The permit can cover up to half of the 3,500 square kilometre Geothermal Special Prospecting Authority area.
Strike will identify and select the areas it believes will generate the most power for its GEP. It expects to enter its application in the final quarter of this year.
Strike has also begun 3D seismic inversion modelling to map subsurface water-wet and permeable sandstones at its Kingia reservoir. The company says previous major gas discoveries have housed similar abnormalities.
Data from the modelling will be used to start an independent inferred resource and power assessment for the reservoir. Strike expects its inferred resource will be booked in the coming quarter. The inferred resource will then support an indicated resource in 2022.
Finally, potentially also boosting the Strike Energy share price, is news the company has announced it's working with a range of potential collaborators to progress its project's concept selection. The concept selection is taking in knowledge on drilling, surface power generation, regulatory approvals, network service providers, and electricity off-takers.
Strike Energy share price snapshot
Today's gains included, the Strike Energy share price has fallen 5% year to date. However, it is 19% higher than it was this time last year.
