The Strike Energy Ltd (ASX: STX) share price is again surging in trading today after the company released an announcement to the ASX before market open. The announcement provided an additional update on its West Erregulla-2 gas project in Perth, WA, which it jointly operates with Warrego Energy Ltd (ASX: WGO) (each company has a 50% stake).
Strike shares had been in a trading halt since Monday, where the last traded price came in at 12 cents per share. STX shares opened at 15 cents per share this morning and climbed to 16 cents shortly afterwards (equalling its 52-week high) but have since fallen back to the 13 cent level at the time of writing – a gain of 4%. Warrego shares also opened higher and are now sitting at 19 cents per share – an 11.76% gain.
What did Strike announce?
In its ASX announcement, the company stated:
Strike Energy Limited confirms that the Strike-Warrego Joint Venture has made a significant gas discovery in the Wagina sandstone as part of the West Erregulla-2 drilling campaign…. this is a significant discovery and comes from a secondary target which carried a low pre-drill probability of success. Importantly, it provides further confidence in Strike's predictions of good porosity development within Permian reservoirs being possible at depths greater than that of Waitsia and to the South-East.
The gas discovery occurred at a depth of 4,106 to 4,180 metres and Strike plans to continue drilling to a total depth of 5,200 metres.
This announcement follows its ASX announcement on 24 July 2019 outlining its discovery of "significant high-pressure gas" during drilling at West Erregulla.
