Strike Continues Flow Testing Operations at Le Chiffre 1, Klebb Wells in SA

Strike Energy Limited (Strike) provided Wednesday an update on its continuing flow testing program at its Southern Cooper Basin Gas Project in PEL 96 (Strike 66.7 percent and Operator, Energy World Corporation 33.3 percent) in South Australia.

The attached Investor Presentation provides further information about the Company’s activities to date and future plans for the Southern Cooper Basin Gas Project. This will be presented by David Wrench at the forth coming Euroz Securities Institutional conference in Perth.

Flow Testing Update

Following the recommencement of flow testing operations after the recent rain delays, gas production has continued to increase at both the Le Chiffre 1 and Klebb 1 locations. The wells have now been cycled through a series of production and shut in phases to obtain a range of flow and pressure data.

Preliminary Observations

In each production phase, gas flows have been established quickly and continue to build. Preliminary analysis of the pressure and production data obtained to date confirm:

  • Increasing gas flow rates continue to be observed as the reservoir pressure is reduced. Consistent, stable pumping operations have proved most effective in achieving sustained pressure reductions and increased gas flow rates
  • To date, reservoir pressures have been reduced to 2,000 – 2,400 psi close to the wells (from initial pressures of 2,900 – 3,000 psi). Encouragingly, this limited pressure reduction has been sufficient to initiate and sustain gas flows from coal proximate to the wells and confirm that the coals are highly gas saturated
  • Well productivity is significantly improved through managed increases in pump rates

Gas adsorption isotherms for the producing coals show that the majority of gas stored (adsorbed) on the coal surfaces will be recovered at average reservoir pressures below 500 psi. Therefore, flow testing will now focus on achieving further reductions in average reservoir pressures to facilitate increases in gas production towards commercial rates.

Klebb Wells

During the month of February, 19 days of flow test data was obtained from the Klebb 1 location with sustained gas flows during the entire period and 6,400 barrels of water produced. During the testing period, pump rates were gradually increased with a corresponding increase in gas productivity being observed.

Klebb 3 was successfully commissioned during February and produced for 9 days averaging around 100 bbls water per day.


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