During the past few months, ASX announcements by Strike Energy...

During the past few months, ASX announcements by Strike Energy (STX) painted a very encouraging picture re: drilling progress in respect of the 4 wells located in PEL96. Informed comments on the HC STX forum were also increasingly leaning towards a very positive assessment of PEL96 prospects. As far as STX was concerned, PEL96 resource has been estimated at 6.8TCF (recoverable sale gas), of which 2.3TCF is net to EWC.

While geologist, gas exploration and drilling expertise is certainly an advantage in assessing the kind of information released on the ASX by STX, since yesterday’s ASX postings by STX of its 29 October, 2015 AGM address by its chairman and company presentation by its CEO, such expertise is, in my opinion, not necessary any longer. As the Chairman pointed out: “These achievements place us both operationally, commercially and financially on track to progress confidently towards the rapid commercialisation of this multi-Tcf resource during a relatively volatile period in the market where we have seen a ‘global meltdown’ in oil and gas prices”,,,,,,, “I would finally like to acknowledge the Company’s shareholders and thank you for your continued support – my commitment and challenge to our management team is to deliver the ‘best of times’ to you over the coming year.

As if this were not already encouraging enough, hc posters who attended this AGM summarized the main points, in part, as follows:
The resource is much larger than they thought and they went into quite a long conversation about another layer of coals that they believe are below the bottom depth of the current wells.

The resource size is going to be significantly bigger than originally forecast, not just because of other coals seams, but because of saturation, permeability, deliverability etc. all of those ingredients are a lot better than they expected when they started out and significantly better than even what they thought they were recently…… “There is a lot more upside to this resource, and it is a substantially bigger play than we thought it was”

DW (CEO) “Not a question of if, but when, and unfortunately I don’t know how long it will take” …..Then mark Carnegie (Chairman) interrupted to say that he wished he were here in the next month instead of today ! and that “this is a killer project we have here”.

Finally, some money seems to follow this kind of assessment: from market depth of 1:4 (buying vs. selling), the situation has, since yesterday turned around completely (slightly more buying than selling) and the STX share price has increased from around 10.5 cents to 13 cents.

As the saying goes: what is good for STX re: PEL96 is good for EWC!!!