Strike Energy : 24-07-2019 West Erregulla 2 Update – Initial Wagina Gas (358 KB)

ASX Announcement

The Company Announcement Officer ASX Ltd via electronic lodgement	24th July 2019

WEST ERREGULLA-2 UPDATE

INITIAL WAGINA GAS

Current Operations

Since the last update on the 5th of July, Strike has been drilling ahead at West Erregulla 2 on the second intermediate hole section (10-5/8" hole) with a current depth of 4,117m. The top of the Wagina formation was encountered at 4,102m. At 19:20hrs on the 23rd of July 2019 at 4,111m, a drilling break saw the rate of penetration (ROP) increase to 35m/hr, coinciding with clean porous sandstone which was recovered over the shakers. As this occurred, significant high-pressure gas began rising within the mud system with over 98% C1 recorded with no fluorescence. Since this time, material gas has been coming to surface, flowing sufficiently to light the flare on the rig.

The consistent gas flowing to surface has prevented further drilling operations and currently Strike has only penetrated 8m of the Wagina described above. These results are in line with pre-drill modelling.

At this stage, Strike does not have sufficient information on pressures, permeability, flow rates or porosity to fully evaluate the interval until it runs the required wireline logs for formal evaluation of these initial results.

Forward Plan

Strike will re-balance the well via increasing the weight in the mud system in order to subdue the productive formation. Once this has been established and it is safe to drill on, Strike will then drill the second intermediate section to TD at approximately 4,230m, then pull out and run wireline logs over the entire section.

West Erregulla-2

Sustained gas at West Erregulla

West Erregulla-2 is being drilled in EP 469 which is adjacent to and targeting analogous Permian gas sands of a similar

size and nature as the Waitsia gas discovery. The well will be drilled to a planned total depth of 5,200m and penetrate two additional independent reservoir targets. These include a conventional gas target in the basal Wagina sandstone and the primary gas sand sequence in the Kingia High Cliff.

Strike Energy Limited (Strike - ASX: STX) is the operator and the holder of a 50% joint venture interest in

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

Strike Energy Limited ABN 59 078 012 745	P: [phone]	1/31-35 George St, Thebarton. South Australia 5031
www.strikeenergy.com.au	E: [e-mail]

ASX Announcement

24th July 2019

Investor & Media Contacts
Stuart Nicholls	Justin Ferravant
Managing Director	Chief Financial Officer & Company Secretary
Phone: [phone]	Phone: [phone]
email: [e-mail]	email: [e-mail]

West Erregulla-2 Location and Amplitude Visualisations of stacked targets:

Strike Energy Limited ABN 59 078 012 745	P: [phone]	1/31-35 George St, Thebarton. South Australia 5031
www.strikeenergy.com.au	E: [e-mail]