Strike Energy (ASX: STX) will next week spud its first Eagle Ford Shale Project production test well that will demonstrate the value of the company's acreage position.
Other operators in adjacent permits are also currently completing production wells in the same unit, which together with the Bigham-1H well, will de risk Strike's play in Lavaca and Fayette counties, Texas.
Sanchez Energy has estimated ultimate recovery of 350,000 to 550,000 barrels of oil equivalent (boe) per well based on a 120 acre well spacing at its Marquis area, which is adjacent to Strike's acreage.
If confirmed, this equates to 285 unrisked well locations across Strike's 34,793 acre position with resource potential of 25 to 40 million boe net to the company.
Strike has a 27.5% interest in the Eagle Ford Shale Project which targets one of the world's most prospective unconventional hydrocarbon plays due to high condensate and natural gas liquids production ratios.
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