Sustained gas flows have been achieved at each well and initial results showed productivity has increased following the fracture stimulation at the Klebb-2 and -3 locations.
SWEET SPOTS KEEPING COSTS DOWN
Wrench describes Strike’s unconventional resource targets in the Cooper Basin as “potential sweet spots” – areas capable of achieving a low unit cost of supply that will sustain strong operating cash flows over the production life of the wells.
In a recent speech, Mr Wrench stated that sourcing lowest cost gas resources was key to solving the eastern states’ supply forecast of 40 Tcf over the next 20 years.
“We think our project has all the necessary fundamentals to be a sweet spot play,” he said.
Since day one, Mr Wrench says the company has had a focus on keeping costs low in an effort to enter the domestic gas supply market at the most competitive price.
“The lower your costs structure, the easier it is to reach commercial threshold and your commercial production target,” Wrench says.
“Strike is certainly focused on being cost competitive so we can give ourselves the best chance of commercial success.”
THE OTHER SIDE OF THE OIL SLUMP
It’s no secret that the past twelve months of dramatically lower oil prices has had a significant impact on oil and gas companies’ ability to fund exploration programs.
“Costs are out of control and I think everyone acknowledges that. We have seen over the past six to twelve months that activity has dried up quite significantly. As a result, there has been a big reduction in drilling costs, contracts and exploration activities.”