The Strike Energy Ltd (ASX: STX) share price is in the green today amid an update on its drilling operations.
The company’s shares are currently trading at 28.2 cents each, a jump of 6.42%.
Let’s take a look at what could be impacting the Strike Energy share price today.
Drilling operations update
Strike Energy is a low carbon energy and fertiliser company with access to the Perth basin in Western Australia.
Today, Strike Energy updated the market on drilling at its South Erregulla-1 (SE1) target.
Strike said the company has set, cemented, and pressure tested the SE1 well. It has also commenced drilling the final production section.
South Erregulla is located within an area known as EP503, close to Strike’s gas discovery at West Erregulla. The company describes West Erregulla as a “significant gas discovery” that was a major turning point in its history.
Strike said South Erregulla has significant resource potential in the Kingia sandstones with a great chance of success.
The main objective of drilling at SE1 and other wells is to secure the gas requirements for Project Haber. This is a fertiliser production facility in WA that was recently awarded major project status.
Management comment
In a statement signed off by the managing director and chief executive officer, Strike Energy said:
On confirmation of success at SE1, Strike will look to sanction additional detailed engineering, finalise the urea offtake, and progress the equity/debt processes for Project Haber and any subsequent appraisal wells in South Erregulla.
Strike Energy share price snapshot
The Strike Energy share price has fallen nearly 6% in the past year but is up 38% year to date.
In the past week alone, Strike shares have risen nearly 10%.
For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 6% over the past year.
Strike Energy has a market capitalisation of $567 million, based on today’s share price
The post Here’s why the Strike Energy (ASX:STX) share price is 6% higher today appeared first on The Motley Fool Australia.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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