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Strike Energy boosts prospective gas resource at PEL 96 in the Cooper Basin to 6.8 Tcf

Last updated: 19:10 19 Feb 2014 AEDT, First published: 18:10 19 Feb 2014 AEDT

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Strike Energy (ASX:STX) has increased its prospective gas resource at the PEL 96 permit in the Cooper Basin to 6.8 trillion cubic feet, with 4.5 Tcf net to Strike.

The resource increase was following Strike's appraisal well drilling programme including the Le Chiffre-1 and Klebb 1 wells within PEL96, and Strike is now focused on the rapid commercialisation of a portion of the resource within the Phase One Area of the permit.

That portion comprising 141 square kilometres and holding a prospective gas resource of 1.3 Tcf net to Strike is located directly under the Moomba to Adelaide Gas Pipeline, which will connect the resource to the Eastern Australian gas markets.

The prospective resource upgrade is an important milestone for Strike as it would help it advance towards commercialisation having already struck gas supply agreement with Orica and Orora.

Separately, an independent review of well drilling and completion costs based on actual results during the recent drilling and costs for forward production testing programme, has shown that the vertical production well costs of between $3.2 million to $3.6 million per well can be achieved.

Importantly, these costs are below Strike's internal estimates and much below costs for unconventional plays in the Cooper Basin.

Going forward, the company will finalise a design of an initial production testing programme and it is hoped that completion and testing operations will be done in the June quarter this year.

Strike is the operator of the PEL 96 permit with a 66.667% interest while Energy World has 33.333% interest.


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