Strike Energy Limited provides an update on completion operations at the Company’s Eagle Ford Shale project.
BACKGROUND
Strike participates in the Cypress Eagle Ford Shale Joint Venture, operated by Cypress E&P Corporation, in Lavaca and Fayette Counties, Texas which has 41,550 gross acres under lease (Strike’s net interest is 10,995 acres. The leases are located on trend with highly productive fields in Lavaca and De Witt counties and are predominantly positioned in the optimum gas-condensate window. As previously advised, the Wolters #1H horizontal well reached a total measured depth (“MD”) of 18,530’ (~5,648 metres), with approximately 5,500’ of lateral drilled in the Lower Eagle Ford shale. Due to an obstruction in the well bore, which was unable to be removed, the well was sealed off at approximately 14,800’ MD (~4,511 metres) and a nine stage fracture stimulation program was completed in the remaining 1,800’ of lateral.
CURRENT SITUATION
The operator has milled out plugs set between the 3 stages closest to the heel of the well but encountered difficulties milling out a plug at 13,550’ MD. It appears that the casing may have split or parted at this point. A range of options are now being actively assessed by the joint venture in discussions with the operator in order to achieve a meaningful flow test of the well. We are very disappointed to have been impacted by this further operating issue, especially in light of the potential of the substantial lease package held within the Cypress Eagle Ford Shale Joint Venture based, in turn, on the increasingly positive results being obtained by other operators including Penn Virginia Corporation and Sanchez Energy Corporation on trend.
Managing Director David Wrench stated: “While the operational problems we have experienced at Wolters 1H have been extremely frustrating, our confidence in the potential of the resource remains firm and our immediate focus is on achieving a satisfactory resolution of the current technical issues. We have appointed specialist oil and gas advisory firm, Miro Advisors, to assist the Board in a comprehensive review of the strategic alternatives for our Eagle Ford investment. Our key objective is to participate in the further evaluation of the play while limiting any further commitment of Strike capital. In Australia, drilling operations at our Southern Cooper Basin Project are on track to commence in early November, a significant milestone in the development of this substantial resource.”
For more information about related Opportunities and Key Players visit
Oil Shale Projects 
