Drilling to Begin on Deerslayer Prospect
Strike Energy advised that drilling is due to commence on the Deerslayer Prospect this week with the Steindorf 1 exploration well in Live Oak County, located approximately 205km south-west of Strike's existing Rayburn project in Texas, USA.
The well has a proposed total depth of 14,000 feet (4,267 meters) and should take approximately 40 days to drill.
The Deerslayer Prospect has a prospective gas resource of 200 billion cubic feet (Bcf). Strike has a 30% interest in the prospect, providing the potential for a 5 to 10 fold increase in Strike's existing reserve inventory.
The Steindorf 1 well is part of the exploration program in the Wilcox Formation, onshore Texas, (success rate 50%) which has so far resulted in the discovery of the Rayburn, Mesquite and Louise gas/condensate fields.
Strike Energy's Managing Director, Simon Ashton commented, "This is an extremely exciting prospect with the potential to add substantial value for shareholders."