The Strike Energy Ltd (ASX: STX) share price is surging higher, up 4.8% after earlier posting gains of more than 9%.
Here’s what’s driving investor interest in the ASX oil and gas explorer and developer.
What field test results were announced?
The Strike Energy share price is leaping higher after the company reported on promising final flow testing results at its Walyering Gas Field, located in the Perth Basin in Western Australia.
Strike Energy is the operator and owns a 55% equity interest in the gas field, while Talon Energy Ltd (ASX: TPD) holds a 45% equity interest. Talon Energy shares are up 11% at time of writing.
According to this morning’s release, after 21 days of testing, the results at its Walyering-5 well have “materially outperformed expectations.”
In fact, the Walyering comingled flow test achieved the 3rd highest flow rate in Basin history. For the technically minded, the explorer reported this came in “at a choke coefficient of 75 mmscfd on 72/64 choke with FWHP of 2,599 psi”.
Individual testing of the Walyering-5 well’s A and B Sands has now been completed.
And the Strike Energy share price could be getting a lift from the report that the gas analysed from the A and B sands was found to be high quality with negligible impurities and condensate gas ratios.
Commenting on the positive test results, Strike Energy’s CEO, Stuart Nicholls said:
The outcomes of the Walyering-5 flow test have exceeded Strike’s most bullish estimates. The strength of the reservoir pressure, high quality gas stream and adjacency of gas transmission infrastructure will all come together to create some of the lowest cost gas to be developed in Australia for many years.
Strike Energy is currently drilling the Walyering-6 well at a measured depth of 2,130 metres.
Strike Energy share price snapshot
The Strike Energy share price has been a star performer in 2022, up 56.8% since the opening bell on 4 January. By comparison, the All Ordinaries Index (ASX: XAO) has lost 3.8% year to date.