21 June 2019drilling progress report● Neutral
Jaws pilot: flowing bottom hole pressure has been drawn down to 250 psi, with sustained gas production slowly building. Water is 450 bbls/d. No gas rates given; commercial success not yet declared.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
20 June 2019drilling progress report● Neutral
WE-2 is at 2,280m. The Cattamarra oil target showed hydrocarbon shows but too weak to justify logging or testing; Strike calls them supportive of its model. The well is said to be on schedule and budget.
14 June 2019drilling progress report● Neutral
WE-2 surface casing was cemented at 950m. Several days of unplanned rig maintenance and severe weather delayed restart; drilling is now at 1,237m in the first intermediate section, heading to about 2,550m.
14 June 2019farm in farm out agreement● NeutralMajor
The Pancontinental farm-in on the Walyering gas discovery (EP447) has terminated because its preconditions were not met in time. Strike now holds 100%, plans to run the 3D seismic itself and may farm out. This supersedes the earlier farm-in plan.
6 June 2019drilling spud▲ GoodMajor
West Erregulla-2 has spudded and drilled the 17-1/2" surface hole to 950m. Casing is next. This starts the well Strike has been building toward, planned to 5,200m.
31 May 2019drilling progress report● Neutral
The Easternwell 106 rig completed its 4,500km, 95-load move to West Erregulla and was set up, with spud expected on Saturday 1 June. The well is planned to 5,200m across three targets.
15 May 2019drilling progress report▲ Good
Jaws has consistent gas production again, and the flare was relit on 13 May with reservoir pressure at 425 psi. Water is 450-500+ barrels a day. This follows the January sand setback, but no gas rates are given and commercial success is not yet declared.
8 May 2019drilling progress report▲ Good
The Easternwell 106 rig has begun leaving Queensland for West Erregulla, about 90 loads over 4,500km. Civil works are complete and spud is expected towards the end of May. The well is planned to 5,200m total depth across three targets.
22 Mar 2019drilling progress report▲ Good
Jaws wells are being drawn down with little solids returned. Water is 300-400 barrels a day and reservoir pressure about 800 psi. Sporadic gas surges began at 850 psi, which Strike calls encouraging. No gas rates given; commercial success not yet declared.
7 Mar 2019drilling progress report▲ Good
Site preparation and civil works have started at West Erregulla for the Easternwell 106 rig ahead of the WE-2 well. Strike is operator with 50%; Warrego holds the other 50%. This is the first on-ground step toward the planned well.
5 Mar 2019resource reserve update▲ GoodMajor
Strike added a third West Erregulla-2 target, a Jurassic Cattamarra oil sand at about 2,200m, with best-estimate prospective resource of 7.19 million barrels gross (3.60m Strike share) and 14% chance of success. Gas figures unchanged; 69% chance for the main Kingia-High Cliff target. Drilling in May.
27 Feb 2019drilling progress report▲ Good
Jaws workover finished and both pumps are back online, with communication between the two wells re-established. Strike will resume depressurising the Vu Upper coal toward the critical desorption pressure. This resolves the sand blockage from the January gas event.
19 Feb 2019drilling progress report● Neutral
Jaws workover began early. Coiled tubing cleared an obstruction and reached the horizontal well's toe, but nitrogen returns to surface were not established. Pumps are being rerun and restart is expected within a week.
25 Jan 2019drilling progress report▼ BadMajor
Rig-less flushing failed to clear sand deposited at Jaws in the January gas event, which has hurt communication between the wells. Strike will bring in a workover rig and coiled tubing in mid-February for about two weeks. The company calls it a setback to the timeline.
14 Jan 2019resource reserve update▲ GoodMajor
Strike secured the Easternwell 106 rig, with West Erregulla-2 now expected to spud in early May 2019. Reprocessed seismic lifts gross P50 prospective resource to 1.16 TCF (Strike share 50%). Earlier talk of early 2019 drilling has slipped to May.
20 Dec 2018drilling progress report▲ Good
Strike says Jaws gas production continues to build, with daily ranges narrowing as flows rise, and water production stable. Described as indicating matrix desorption is occurring. No rates given and commercial success not yet declared.
19 Nov 2018farm in farm out agreement● Neutral
Petrel Energy and Warrego signed a non-binding term sheet for Petrel to acquire Warrego via reverse takeover, with an AIM listing sought. Warrego is Strike's 50% partner in West Erregulla; the release says drilling West Erregulla-2 is planned for first half 2019. Partner-level change; Strike not a party.
13 Nov 2018drilling progress report▲ Good
Jaws gas flows have moved from intermittent surges to continuous 25-50 mscf/d from both wells, with bursts to 100 mscf/d, after a brief late-October power outage. Commercial success not yet declared. SPP extended to 30 November; UIL directors to accept, taking acceptances above 30%.
26 June 2018drilling progress report● Neutral
Production tubing and electric submersible pumps are installed in the Jaws-1 wells and the workover rig is leaving. Power connection and tie-in to the pilot facility remain, with production testing expected to start in early July.
15 June 2018drilling progress report▲ Good
After the fracture work, early microseismic data is said to show positive indications. Water response rose at Klebb 1 and 2, which Strike infers means connected fractures. An ESP workover rig is on site; wells are still expected online in early to mid-July.
4 June 2018drilling result▲ GoodMajor
Strike completed all seven fracture stages on Jaws-1, including five of the first indirect vertical fractures in Australia, with targeted proppant placed. Microseismic analysis is pending. Clean-out and pumps follow, with production expected from early to mid-July.
28 May 2018drilling progress report● Neutral
Halliburton's stimulation crew has mobilised to Jaws after being delayed by another operator's work. Seven stages are planned, two in the coal and five from beneath, with microseismic monitoring. Wells are now expected online in early to mid-July.
2 May 2018drilling progress report▲ Good
The liner and fracture sleeves were installed in Jaws-1 at 2,873m, with packers positioned for the full 7-stage stimulation. Strike says this significantly de-risks the project; hydraulic stimulation is next.
30 Apr 2018drilling result▲ Good
Jaws-1 horizontal drilling is complete at 2,880m measured depth, intercepting the vertical well in what Strike calls Australia's deepest horizontal/vertical intercept. The section sits in siltstone under 2m below the Vu Upper coal; liner and frac sleeves come next.
24 Apr 2018drilling progress report▲ Good
The Jaws-1 sidetrack was cut through a window at 2,094m and drilled through the Vu Upper coal, landing the horizontal at 2,350m in siltstone below it. Drilling now heads to intercept the vertical well, with fracturing from below.
18 Apr 2018drilling progress report▼ Bad
Duplicate of the 18 April release: remedial cementing failed to stabilise the Jaws-1 horizontal hole, so Strike will sidetrack and use the Indirect Vertical Fracture Completion technique from below the Vu Upper coal.
18 Apr 2018drilling progress report▼ BadMajor
Remedial cementing did not stabilise the Jaws-1 horizontal hole, so Strike will sidetrack and fracture the Vu Upper coal from the siltstone below it using the Indirect Vertical Fracture Completion technique. Strike says the original objectives are not compromised.
11 Apr 2018drilling progress report▼ Bad
The Jaws-1 horizontal hole reached 2,378m but difficult ground, which Strike believes is coal made brittle by the cementing, is holding up progress. A remedial cement job is under way. The April finish is no longer restated; the schedule will be updated later.
28 Mar 2018drilling progress report● Neutral
The Jaws-1 horizontal build section was completed on target at 2,276m measured depth and 81 degrees, into the top of the Vu Upper coal. Intermediate casing is next; drilling is still said to be on track for April.
14 Mar 2018drilling spud▲ Good
Strike spud the Jaws-1 horizontal well, the second of the two-well appraisal, after an issue-free rig move. It follows the vertical well and drilling is still expected to finish in April 2018 before fracture stimulation.