The Strike Energy Ltd (ASX: STX) share price is falling hard in early trade.
Below, we take a look at the ASX energy share's gas reserve update.
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What gas reserve update did Strike announce?
Strike Energy's share price is tumbling despite the company reporting it had delivered its maiden Perth Basin Gas Reserve. This comes just 2 years after Strike launched its initial exploration operation in the area.
The Gas Reserve was certified by subsurface consultancy Netherland, Sewell & Associates, Inc. (NSAI).
According to the release, NSAI certified 300 petajoule (PJ) 2P and up to 372 PJ 3P gross gas Reserves at the West Erregulla gas field in the Kingia Sandstone.
(Note, 2P equates to the total proved and probable reserves, while 3P equates to proved, probable and possible reserves.)
The Strike Energy share price failed to get a boost despite the company reporting that NSAI identified "considerable upside" with an additional 128 PJ of gross 2C Resources and 198 PJ of gross 2U Resources in the West Erregulla gas field.
Commenting on the progress, Strike's CEO, Stuart Nicholls said:
Delivering our maiden Perth Basin reserve is an important step on the journey towards delivering Strike's Mid-West vision of becoming a Net Zero 2030 integrated energy, fertiliser and renewable power producer, predicted to be the first of its kind for Australia.
These initial reserves are the beginning of a value staircase with a clear plan to increase the recoverable resources in the Erregulla complex and come at a time when gas availability is shortening and its value in the energy system is rising.
With an eye on further potential within the company's Perth Basin holdings, Nicholls added, "These NSAI certified resources are bounded by significant upside and potential in Strike's 100% owned acreage, where gas resources have been booked to the very southern edge of the permit boundary, where Strike's acreage continues."
Strike Energy share price snapshot
The Strike Energy share price has been on a bit or a rollercoaster in 2021. With today's moves factored in, Strike's shares are down 15% year-to-date. That compares to a 9% gain posted by the All Ordinaries Index (ASX: XAO) so far this year.
Over the past month, Strike Energy's share price is down more than 13%.
