Strike Energy's (ASX:STX) primary C1 Sand result in Western Australia is "encouraging" and points to a potential low-cost development tie-in, Euroz Hartleys said in a Tuesday note.

The company recently completed flow testing operations at the Walyering West-1 exploration well in the Perth Basin, confirming a low-impurity gas accumulation within the primary target of the Cattamarra formation.

The flow testing was conducted over 12 days, with the well achieving a stabilized flow rate of 11 million standard cubic feet per day from the C1 Sand through a 36/64 choke.

The materiality of the result will depend on the forthcoming reserves and resources update, Euroz Hartleys said.

Additionally, the decision regarding the integration of the well into the Walyering infrastructure will be made after the reserves assessment and economic review are completed.

Euroz Hartleys reaffirmed its buy recommendation on Strike Energy, with its AU$0.22 price target under review pending the Walyering West reserves and resources update.

Strike Energy shares fell nearly 5% in midday trade Wednesday.