Australian Coal Seam Gas - Other Exploration

A strategic regional ground position presenting exciting Coal Seam Gas and conventional oil and gas opportunities, adjacent to key infrastructure.

Beyond PEL 96 and the Company's PELA 71, Strike Energy has increased its exposure from 10,000 sq km to 17,600 sq km in the southern region of the Cooper/Eromanga Basins by means of a successful new acreage bid and acquisition of new working interests.

Strike Energy was the successful bidder for licence area CO 2009-D in the recent South Australian bid round and holds a 100% position in this permit. In addition, the Company was successful in acquiring Magellan Petroleum Corporation's ("Magellan") non-operated working interests in PEL 94 (35%), PEL 95 (50%) and PPL 210, Aldinga Oilfield (50%).

The combination of these interests, with Strike Energy's operating 66.7% interest in PEL 96 and 75% interest in PELA 71, gives Strike Energy the dominant position in future oil exploration and ongoing non-conventional evaluation (primarily CSG) in the region.

The southern Cooper/Eromanga region contains conventional oil potential throughout the Strike Energy permits as indicated by oil shows in several of the existing wells and the presence of the Aldinga Oilfield in PEL 95 and the Kobari Oilfield on the northern boundary of PEL 95.

In addition, the Permian CSG potential in PEL 96 extends into PEL 94 and PEL 95 to the north.

A much shallower CSG play exists in the Tertiary and Cretaceous (Winton Formation) age sequences at depths between 200 and 600 metres in all of Strike Energy's permits. The Winton Formation coals are being evaluated by other companies to the north. The Permian and shallower coal measures could also have underground coal gasification (UCG) potential.

AUD$0.190 (+0.005)

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