This is Strike's first well outside Australia. Jabber et al-1 is part of its Texas drilling program that could result in more than 10 bores drilled in the next two years in conjunction with operator Cypress E&P Corporation.
Strike is earning a 10% interest in the prospect by funding 13.3% of the costs to drill and evaluate the well. It may also fund 10% of any additional completion and development costs.
Cypress E&P Corporation has a 40% interest in the well that has a proposed total depth of 3,963 metres, taking 45 days to drill.
The prospect is defined by a seismic amplitude anomaly that is interpreted to indicate gas in sandstone reservoirs in the Cook Mountain Formation.
Strike said other wells on trend produced gas from the formation and the gas potential of the prospect could range from five to 15 billion cubic feet.
Initial production from any discovery in this program could be sold within four to eight weeks because pipeline infrastructure and competitive gas markets were close, according to Strike.
When coupled with the high spot gas prices of US$6 to $7 per thousand cubic feet, this provided potential for significant early cash flow, the company claimed.
