4 Jan 2021drilling progress report● Neutral
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Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
23 Dec 2020drilling progress report● Neutral
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15 Dec 2020drilling progress report▲ Good
WE-3 is at 4,024m with 9-5/8 inch casing cemented. Gas shows are consistent through the Dongara and upper Wagina sandstones, and the main Kingia and High Cliff targets are next. Shallower Jurassic and Triassic sands held only residual hydrocarbons.
4 Dec 2020drilling progress report▲ Good
WE-3's second intermediate section reached about 3,534m, shallower than planned because a fault was met higher than predicted. Hydrocarbon shows throughout are similar to WE-2. Wireline logging then casing come next before drilling to the main Permian targets.
23 Nov 2020drilling progress report▲ Good
The new slip and seal assembly was installed and pressure tests passed. Drilling of WE-3's second intermediate section is resuming, targeting 3,750-4,150m. This resolves the wellhead delay reported on 16 November.
16 Nov 2020drilling progress report▼ Bad
Pressure testing of the WE-3 wellhead seals failed because the 13-3/8 inch casing slip and seal assembly failed. A replacement is due in about a week and the rig stands by. Another short delay to WE-3.
12 Nov 2020drilling progress report▲ Good
WE-3's first intermediate section was drilled to 2,462m and cased and cemented without issue. Hydrocarbon shows in the upper Cattamarra Coal Measures are similar to WE-2. Strike says it has identified the root causes of the earlier assembly failures.
26 Oct 2020drilling progress report▼ Bad
Strike reports a second mud motor failure in WE-3 at 1,629m. Fishing was judged unlikely to succeed, so the well was cemented and side-tracked again. Strike has added experienced Perth Basin drilling engineers. A further delay to the first appraisal well.
14 Oct 2020drilling progress report▼ BadMajor
Warrego relays Strike's update: while drilling the first intermediate section of WE-3, the drill assembly broke and the bit and motor were left in the hole. Fishing failed, so the well will be cemented and side-tracked. A setback and delay for the first appraisal well.
29 Sept 2020drilling progress report● Neutral
WE-3 surface hole drilled to 1,210m and 20-inch casing is being run. The next section will drill to about 2,740m. This is routine progress with no new result.
21 Sept 2020drilling spud▲ GoodMajor
Operator Strike reports Rig 970 is rigged up and West Erregulla 3 begins drilling on 21 September, starting with a 26-inch surface hole to about 1,200m. This is the first appraisal well since WE-2 and the northern-area test.
16 June 2020drilling scheduled▲ Good
Warrego confirms the Ensign 970 rig for WE-3 (2H 2020, subject to permitting) and WE-4, with WE-5 possible. It puts WE-3's chance of success at 65%, which RISC agrees with. A further 3D seismic survey is planned for Q2 2021.
20 May 2020resource reserve update▼ BadMajor
Operator Strike publicly notes its November 2019 resource estimate differs from Warrego's RISC-certified figure. It says it has not received RISC's report and that seismic attributes were not used, implying the full dataset was not considered. It stands by its own modelling.
18 May 2020resource reserve update● NeutralMajor
Independent review by RISC certifies West Erregulla Central Area 2C contingent resources of 513 Bscf gross (257 Bscf net to Warrego), with 3C of 966 Bscf. Northern Area prospective resource is 102 Bscf. This is well below Strike's November 2019 1,185 BCF 2C figure.
11 Nov 2019resource reserve update▲ GoodMajor
Operator Strike books an initial 2C contingent resource of 1,185 BCF (gross) for the Kingia and High Cliff sandstones at West Erregulla, and updates the Wagina prospective resource. Warrego holds 50%. This resolves the resource booking awaited since the flow test.
11 Nov 2019resource reserve update● Neutral
Text not readable. Strike's West Erregulla resource statement came through only as bullet markers. Warrego's own release of the same day gives the figures.
10 Oct 2019drilling progress report● Neutral
Strike says the rig has left West Erregulla-2 and the flow test equipment is being moved to site. A multi-stage Kingia production test will follow, with flow rate possibly limited by the tubing size. No results yet.
24 Sept 2019drilling progress report▲ Good
Strike perforated the Kingia, ran the 3-1/2in production tubing and released the Easternwell 106 rig, completing West Erregulla-2 drilling. The flow test was expected to start in early October and take about two weeks to gather flow and pressure data.
16 Sept 2019drilling progress report● Neutral
Strike has run and cemented the final 5-1/2in casing at 5,090m, securing the Kingia and High Cliff discoveries. It will perforate the Kingia, run the completion, then flow test. Strike expects the Kingia alone to limit flow rate; High Cliff and Wagina tests come later.
11 Sept 2019resource reserve update▲ GoodMajor
Strike upgrades the Kingia discovery: net pay rises to 58m from 41m, with pressure of 6,814-6,828 psia and permeability of 102mD. Pressure suggests a 220m gas column. Contingent resource booking depends on a Kingia flow test within weeks. High Cliff pressure testing was hampered by hole washout.
11 Sept 2019resource reserve update▲ Good
Warrego relays Strike's Kingia upgrade (net pay 58m, up from 41m; permeability 102mD; 220m gas column implied) and attaches the operator's statement. Adds that early planning has begun for more seismic and appraisal wells. No resource estimate yet.
6 Sept 2019drilling result▲ Good
Warrego's release of the High Cliff discovery: 22m gross gas, 10m net pay, porosity up to 16%, well at 5,100m total depth. This is its third discovery in the well, after Wagina and Kingia. Repeats Strike's announcement; resource certification awaits further analysis.
6 Sept 2019drilling result▲ GoodMajor
Strike reports a High Cliff gas discovery at West Erregulla-2: at least 22m gross gas, 10m net pay, 10.3% average porosity, no gas-water contact. Drilling finished at 5,100m, completing the Wagina, Kingia and High Cliff 'trifecta'. Resource booking awaits flow testing.
2 Sept 2019drilling progress report▲ Good
Strike says West Erregulla-2 intercepted the High Cliff sandstone at 4,928m, with drilling breaks and elevated gas. At 5,017m it is the deepest onshore well in Australia. Drilling continues to the Holmwood Shale, then wireline logging. No log results yet.
27 Aug 2019drilling result▲ Good
Warrego's own release of the Kingia gas discovery at West Erregulla-2: at least 97m gross gas column, 41m net pay, 14.3% average porosity, no gas-water contact. Repeats Strike's 27 August announcement; no resource booked until flow testing. Drilling continues toward the High Cliff.
27 Aug 2019drilling result▲ GoodMajor
Strike reports a Kingia gas discovery at West Erregulla-2: at least 97m gross gas column, 41m net pay, average 14.3% porosity with peaks of 19%, and no gas-water contact. This is the primary target Warrego's story hinged on. Drilling continues toward the High Cliff.
23 Aug 2019drilling progress report▲ Good
West Erregulla-2 is interpreted to have entered the Kingia sandstone at 4,761m, with drilling breaks, elevated gas and chlorite-coated clean sands seen in cuttings. Strike thinks it is about halfway through the formation. The bit is being changed; no log results yet.
19 Aug 2019drilling progress report● Neutral
West Erregulla-2 has drilled the final production hole to 4,650m, with sandy shale seen just before the Kingia. The rig is in short maintenance, then will run logging-while-drilling tools to protect data quality through the Kingia. No new result.
12 Aug 2019resource reserve update▲ Good
Strike upgrades its Wagina interpretation to at least 10.2m net reservoir (porosity up to 14%), with the gross gas column expected to reach 79m. Reservoir pressure exceeds 6,800 psia, and Strike compares it to Beharra Springs fields. No resource is booked until a flow test.
7 Aug 2019drilling progress report● Neutral
West Erregulla-2 has the 8-5/8in liner cemented at 4,226m, finishing the second intermediate section. Strike will run a cement bond log, then drill the final 6-3/4in hole toward 5,200m and the primary Kingia and High Cliff targets. No new result.