Tuesday , September 19 2017
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Strike Energy provides Southern Cooper Basin gas project operations update

Strike Energy has provided an update on operations at its Southern Cooper Basin gas project in PEL 96 (Strike 66.67% and Operator, Energy World Corporation 33.33%).

Klebb Production Test Update

Upgrades of the Klebb 1, 2 and 3 pump equipment and automation systems were completed during April with all wells successfully commissioned and on test by month end.

Current Status

The wells are currently configured to operate as follows:

– Klebb 1 – beam pump;

– Klebb 2 – two of the pre-existing 100HP pumps operating in parallel, doubling water injection rate capacity;

– Klebb 3 – new high pressure and high injection rate 300HP pump with larger downhole jet pump equipment deployed.

Early performance is encouraging and consistent with previous production history. Gas flows have recommenced even though the wells had been shut in for 4 weeks prior to recommissioning and the reservoir pressure had built back to around 2,300psi (compared to the initial pre-testing reservoir pressure of ~3,000psi). We therefore expect that it will take a few weeks for the system to reach the reservoir conditions achieved prior to shut in.

Klebb 2 and Klebb 3 are currently producing at the previously established threshold net water rates required to initiate gas production. Pleasingly, both wells still have substantial spare pump capacity available which will allow water flow rates to be maintained for longer periods as gas rates build.

Klebb 4 completion

The Klebb 4 fracture stimulation and electric submersible pump (“ESP”) completion is on track to be completed in June.

Managing Directors Comment

“We are pleased to have now successfully completed the construction and commissioning of the new Klebb pump systems on time and budget.

The early performance of the new facilities is very encouraging and we fully expect to make significant progress towards commercial flow rates and beyond as the reservoir is de-pressured.”

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