Strike Energy's (ASX:STX) confirmation that hydrocarbons have been flowed to surface at the Walyering West-1 exploration well, onshore Perth Basin in Western Australia, is an "encouraging early indicator" ahead of the final test results, Euroz Hartleys said in a Tuesday note.
The firm began flow testing operations at the well, with initial testing of the C1 Sand recovering hydrocarbons to the surface. The start of flow testing marks the next key step in determining the commerciality of the Walyering West discovery.
The firm expects the evaluation and results from the testing program by the end of June.
The investment firm retained its buy rating on Strike Energy with its AU$0.22 per share price target currently under review.