Strike Energy Limited outlined further details of its Cooper Basin unconventional exploration program announced in November 2011.
Strike will participate in two unconventional evaluation wells in the current quarter. The Marsden 1 well will test the Permian sections of the Battunga Trough within PEL 95 (Strike 50 percent) and is scheduled to spud in February. The Davenport 1 well will follow immediately afterwards and will test the Permian sections of the Milpera Trough within PEL 94 (Strike 35 percent).
The wells, both operated by Strike's partner Beach Energy, will provide comprehensive data on Permian coal and shale formations and will enable the company to refine its resource model and develop the next stage of the evaluation and development program for the resource.
Managing Director, David Wrench, said, "Strike's extensive acreage in the Cooper and Eromanga Basins of more than 16,000 net km2 positions the company to be a major player in unconventional oil and gas exploration in Australia's largest onshore oil and gas region.
"Our US experience has demonstrated that the most economic returns in shale developments are generated in wet gas fairways. Accordingly our Cooper Basin strategy is to target these zones.
"Our Marsden 1 and Davenport 1 evaluation wells will focus on identifying the wet gas fairway across the Southern Flank of the Cooper Basin," he said.
Marsden 1 is scheduled to spud in February and will be drilled in the Battunga Trough in PEL 95 (Strike 50%, Beach Energy 50%). The well will be approximately 10 kilometers from Senex Energy's Vintage Crop 1 well which had the 'presence of liquids rich gas' and 6.5 kilometers from the conventional Battunga 1 well. Marsden 1 will be drilled to a total depth of 2,640 meters and is anticipated to intersect 700 to 800 meters of Permian sediments including the Toolachee, the Roseneath, Epsilon and Murteree formations (together REM) and the Patchawarra. Strike anticipates that these formations will be intersected at subsurface depths approximately 200 meters below those encountered by Vintage Crop. Marsden 1 will undergo extensive coring and logging and is expected to take 20 – 30 days to drill.
Davenport 1 will follow immediately from Marsden 1 and will target the Permian sections of the Milpera Trough in PEL 94 (Strike 35%, Beach Energy 50%, Senex Energy 15%). Davenport 1 will be drilled to a total depth of 2,458 meters and is anticipated to intersect approximately 700 meters of Permian sediments including the Toolachee, REM and Patchawarra formations. The well will be extensively cored and logged and is expected to take 20 – 30 days to drill.
The two wells are expected to cost a total of $5.5 million, of which Strike's share is about $2.5 million and will be funded from existing cash reserves.
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