The Strike Energy Ltd (ASX: STX) share price is rangebound in early Tuesday trading and is now flat at 26.5 cents.
The investing piranhas aren't biting today despite a company announcement regarding Strike's South Erregulla target.
As seen in the chart below, Strike Energy has substantially trailed its global peers in the Nifty Commodities Index – a proxy for the performance of the commodities segment as a whole.
Let's take a closer look at the company's market update today.
What did Strike Energy announce?
Strike advised it has successfully cored an approximate 45-metre interval from a previously drilled 4,859 metres at the Western Australia site. It has also retrieved the core to the surface.
Today's announcement follows an update made in a previous release on February 25.
At that time, Strike announced it had successfully completed drilling through two coal formations at South Erregulla – and of its aim to complete another 45 metres target depth.
The company's South Erregulla resource is located in the "100% Strike-owned EP503 which adjoins EP469 where Strike as operator has made a large, high quality conventional gas discovery at West Erregulla".
Apparently, Strike is aiming to secure the gas requirements for its Project Haber, "Strike's proposed Mid-West based 1.4mtpa urea fertiliser manufacturing facility".
Today's announcement confirms Strike could be on the way to meeting its objectives if assay results come back with positive data on resource estimates.
Company comment
According to Strike:
Steady coring conditions with gas shows were observed during the coring operations. The core has now been sent to the laboratory for several rounds of testing.
As a result, Strike has started preparations to reach the final depth in the Holmwood Shale by running in hole with the drilling assembly and logging while drilling, according to the announcement.
Looking forward, Strike says it will drill to final depth in the Holmwood Shale, condition the hole, then "[pull] out the drill string in order to commence wireline logging and evaluation".
Investors haven't bought in today. However, most of the information was released back on February 25 – when shares climbed marginally. It seems the market may have already priced in the 'good news' beforehand.
Strike Energy share price snapshot
In the last 12 months, the Strike Energy share price lost almost 16%. However, it has surged 29% year to date.
During the past month of trading, the company's shares have charged another 23% higher. This puts Strike well ahead of the broad index's performance so far this year.
