The Strike Energy Ltd (ASX: STX) share price is plummeting 7% today after providing investors an update on its West Erregulla Appraisal Campaign. Here’s the details.
The post Strike Energy (ASX:STX) share price sinks 7% on West Erregulla update appeared first on The Motley Fool Australia. –
Strike Energy and Warrego Energy Ltd (ASX: WGO) both hold a 50% joint venture interest in EP469. The gas project is located about 230 kilometres north-east of Perth in the North Perth Basin in Western Australia.
At the time of writing, Strike Energy shares are selling for 35 cents a pop, down 7.8%.
What did Strike Energy announce?
Investors are heading for the hills, dumping Strike Energy shares after digesting the company’s latest release.
In a statement to the ASX, Strike Energy advised its WE5 drilling is continuing to perform to expectations. So far, a depth of approximately 3,356 metres measured depth (MD) has been drilled and is currently in the Woodada formation.
Strike Energy is aiming to drill the intermediate hole section down to a nominal depth of 3,750 metres MD. At that point, the company will have received wireline logs for WE5. Running of the casing and cementing in place is expected to follow afterwards.
In regards to WE4, the clean-up of the well has been paused due to sand being found in the production stream. Strike Energy noted that the source of the sand was identified as the Kingia Sandstone, but was unsure of what caused its presence.
The company said that while some reservoirs produce sand initially on test, the test surface equipment for WE4 is not suited to high-velocity sand. As a result, Strike Energy has put on order additional equipment to support the remaining clean-up and production test.
It is expected that the equipment will take an estimated 2 weeks to procure. In the meantime, the company will assess if it’s viable to combine the flow testing of WE4 and WE5.
Strike Energy share price review
Over the past 12 months, Strike Energy shares have jumped close to 90%, and are up over 20% year-to-date. The company’s shares reached an all-time high of 41 cents on Monday before being hit hard today.
Based on valuation grounds, Strike Energy commands a market capitalisation of roughly $703 million, with 2 billion shares on issue.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
- Why the Strike Energy (ASX:STX) share price is charging higher
- Strike (ASX:STX) share price lifts after 2030 net-zero pledge
- Why the Strike Energy (ASX:STX) share price finished 5% higher
- The Strike Energy (ASX:STX) share price is on watch today. Here’s why
- What’s causing the Strike Energy (ASX:STX) share price surge?
Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.