Strike Energy delayed by flood in Cooper Basin, kicks on with US discovery

Perth-based oil and gas company, Strike Energy (ASX: STX) has reported the Southern Cooper Coal Seam Gas Project has been further delayed by unusually high rainfall and flooding in the Moomba region.
Drilling of the Southern Cooper CSG corehole programme in PEL 96, was scheduled to commence in early April, will now be delayed for at least two months.
It will be several weeks for the full extent of the damage to be assessed and the road crossing to be repaired.
The South Australia section of the Cooper Basin has now been isolated by road access following the cutting of the Moomba to Adelaide road (Strzelecki Track) by floodwaters in the Strzelecki Creek yesterday.
This has impaced all companies operating in the basin, including Strike Energy.
“While the Company regrets the delay in the Cooper Basin, the USA exploration drilling and the testing of the previously announced Louise gas discovery, which are due to commence in April, demonstrates the strength of participating in multiple projects,” Strike Energy’s managing director, Simon Ashton, said.
Meanwhile, the Gardner Duncan 1 gas discovery well on the Louise Prospect in onshore Gulf Coast of the US has been successfully cased in preparation for testing. Activity is now underway to install production facilities and negotiate a sales contract prior to testing the well to sales.
Strike anticipates gas sales to commence in four to six weeks. Typical flow rates in nearby analogue wells are in the range of two to five million cubic feet (MMcf) of gas per day.
Preparations are underway to commence drilling of the next exploration well, on a Gulf Coast 100 Bcf scale prospect, which could spud before the end of March.

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