The Strike Energy Ltd (ASX: STX) share price is up 37.50% in trading today after the company released an announcement to the ASX before market-open, outlining an update on its West Erregulla gas project.
Strike's shares opened at 6.7 cents a share this morning but are now going for 8.8 cents (at the time of writing).
What did Strike have to say?
In its ASX release, Strike confirmed that "since its last update on the 5th of July, Strike has been drilling ahead at West Erregulla 2 on the second intermediate hole section with a current depth of 4,117m."
During this drilling, significant high-pressure gas was confirmed to be rising out of the extracted mud and "flowing sufficiently to light the flare on the rig."
The company stated: "the consistent gas flowing to surface has prevented further drilling operations and currently Strike has only penetrated 8m of the Wagina (gas reserve). These results are in line with pre-drill modelling. At this stage, Strike does not have sufficient information on pressures, permeability, flow rates or porosity to fully evaluate the interval until it runs the required wireline logs for formal evaluation of these initial results."
Strike plans to re-balance and adjust the well and drilling process before recommencing drilling activity. The company plans to drill to a total depth of 5,200 metres and "penetrate two additional independent reservoir targets".
Strike has a 52-week high share price of 16 cents per share, reached in October 2018 and a 52-week low of 5 cents per share, recorded last month.
