Strike Energy Continues Flow Testing Program at SA's SCB Gas Project

Strike Energy Ltd. provided Thursday 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 Corp. 33.3 percent) in South Australia.

Flow Testing Operations

Flow testing operations at Le Chiffre and Klebb during April and May have been focused on reservoir pressure reduction to build gas flow rates towards commercial levels.

Good progress has been observed at Le Chiffre with the well currently undergoing an extended pressure build up test. Approximately 87,000 barrels of water has been produced from Le Chiffre to date. The build-up test will provide valuable reservoir data and allow the ongoing testing program to be further refined.

Following operational improvements, substantial progress has been made at the Klebb pilot leading to increased water and gas flow rates. As discussed in more detail below, we have now established communication between Klebb 1 and Klebb 3 and improved the productivity of Klebb 2. Gas flows have responded accordingly providing confidence that the Klebb multi-well test is capable of achieving commercial gas rates.

To shorten the time to commercial gas rates, we are accelerating our forward program to increase the collective production capacity of the Klebb pilot wells. Initially, a new rod pump will be installed at Klebb 1 to maintain steady production at lower reservoir pressures and enable pumping capacity to be increased at Klebb2 and 3. This will be followed by fracture stimulation of Klebb 2 and 3, which will result in a substantial increase in multi-well production.

Flow testing operations during April and May have been focused on steady increases in flow rates from the Klebb 1 & 3 wells to realize greater well productivity. This approach has resulted in significant improvements at both Klebb 1 and Klebb 3, with Klebb 1 achieving peak flow rates in excess of 600 bwpd and Klebb 3 achieving rates in excess of 250 bwpd.

These operational improvements confirm the productive nature of the Patchawarra coals, with Klebb 1 flow rates constrained by pump capacity and Klebb 3 production from an unstimulated zone.


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