STX: WE4 Results Extend West Erregulla Gas Field

8th April 2021
	ASX: STX The Company Announcement Officer ASX Ltd via electronic lodgement

WE4 results extend

West Erregulla gas field

• WE4 well result materially de-risks Phase 1 gas development.
• WE4 has reached final depth of 5,069m MD with wireline logging ongoing.
• Overall results are above expectations with initial wireline logs and petrophysics across the primary targets indicating:

o Thickest Kingia penetration seen in the Basin to date at 155m. o Porosities of up to 19% in the Kingia.

o Reservoir pressures at 4,898m MD of 6,821 psia.

o No gas water contact encountered which deepens and extends the areal extent of the field.

Strike Energy Limited (Strike - ASX: STX) provides an update on the results of the West Erregulla 4 well on behalf of the EP469 Joint Venture.

Since the last update Strike has drilled through a materially thickened Kingia Sandstone, the Bit Basher Shale and the High Cliff Sandstone to a final well depth of 5,069m, measured depth (MD) in the Holmwood Shale. Initial wireline and pressure results have been recorded.

The overall results of the well are above expectations particularly given the down dip location of the WE4 well on the West Erregulla structure.

The Kingia formation was encountered at 4,827 metres (MD), 19m higher than prognosed with gas on rock showing throughout the entire sandstone of 155m. The Kingia is made up of several large units of clean sand with thick blocky porosity development and bands of very high-quality reservoir. The Kingia has high gas saturation throughout and is interpreted to have net pay of 28m, with an average porosity of 11% across this section and up to 19%.

Gas was observed throughout the entire reservoir sections with no gas water contact seen. Reservoir pressure in the Kingia was recorded at approximately 6,821 psia at 4,898m (MD). These pressure results lie on the same gas gradient as the results of WE2, indicating connectivity within the field. 'Gas down to' has now been extended deeper by a further 61m in line with Strike's pre-drill expectations. This thickens and extends the areal extent of the West Erregulla gas field.

The High Cliff sandstone appears to be thinner than seen in WE2, however, this is more than offset by the thickening and improved average quality of the Kingia Sandstones. These High Cliff results corroborate the isopach modelling that the High Cliff should thin to the East into the Dandaragan Trough leaving the void for the thickening of the Kingia Sandstone.

Coring of intervals in the Kingia (45m) and High Cliff (18m) were successful with laboratory results from these samples expected to start being generated later this month.

The combination of measured gas at high pressure and excellent reservoir characteristics in the Kingia supports the potential for high flow rates when production tested.

All cut-offs for petrophysical calculations used have been as per WE2 and the neighbouring Waitsia gas field.

Forward Plan

Strike is finishing the wireline logs to procure fluid samples and additional pressures across other formations. Once complete, Strike will then condition the hole in preparation for running the final production casing string which will be cemented in place and then completed for the upcoming flow test across the Kingia Sandstones. The well will then be kept on inventory for the Phase 1 development as a future producer. Post WE4 the rig will move to commence drilling operations at WE5.

About the West Erregulla Appraisal Campaign

Three appraisal wells will be drilled in the West Erregulla field, which is located in EP469. The appraisal wells will be drilled down to ~5,000m. West Erregulla 4 (and 5) will appraise the reservoir distribution in the central fault block. After various coring and logging operations the wells will be flow tested (on success) and completed as future producers across the Kingia / High Cliff sequences for the proposed Phase 1 production operations. The Wagina gas discovery made in West Erregulla-2 will also be appraised during West Erregulla 4 & 5.

The West Erregulla wells are to be executed at the following coordinates:

• West Erregulla 3: 29° 22' 40.79" S, 115° 18' 30.70" E
• West Erregulla 4: 29° 25' 8.89" S, 115° 19' 18.15" E
• West Erregulla 5 (proposed): 29° 24' 1.72" S, 115° 18' 27.17" E

Strike Energy Limited operator and the holder of a 50% joint venture interest in EP469, and Warrego Energy (ASX: WGO) a holder of the other 50% joint venture interest.

This announcement is authorised for release by the Managing Director and Chief Executive Officer in accordance with the Company's Continuous Disclosure Policy.

Company Contact	Investor & Media Contacts
Stuart Nicholls	Paul Ryan (Citadel-MAGNUS)
Managing Director & CEO	Phone: [phone]
Email: [e-mail]	Email: [e-mail]

West Erregulla Gas Field & Well Locations in EP469