West Erregulla-5 Commences Clean Up

Source: www.gulfoilandgas.com 7/29/2021, Location: Not categorized

Warrego Energy Limited (“Warrego”) (WGO) provides the following observations in relation to the announcement (“WE5 Production Test Update”) by the Operator of EP469, Strike Energy (“Strike”) (STX) regarding the commencement of flow testing operations at West Erregulla-5 (WE-5).

Testing operations at WE-5 commenced on 26 July 2021. Warrego can confirm the well was perforated over a 6m interval from 4,641 to 4,647m TVDSS. However, Warrego notes that raw data from the well was only provided to Warrego by the Operator after the market opened and is currently being evaluated. Warrego regards interpretations by the Operator at this early stage to be premature for the following reasons:

(a) The well has not completed clean up and fluid continues to be unloaded from the well; and

(b) The perforation (“selective perforation #1”) is below the possible gas-water contact (GWC) as measured in West Erregulla-4 (WE-4). As in WE-4, we would expect to see a clean-up period during which fluids lost to the formation during drilling are produced followed by the production of any reservoir fluids.

Warrego notes that, with well clean up still ongoing, it is far too early to confirm or otherwise whether water will be produced from WE-5 and at what depth. Any definitive interpretation prior to a full and sustained flow test being undertaken is simply premature.


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