USA Onshore Gulf Coast - Exploration

A 60% discovery rate to date, over 200Bcf of targets to come and an active exploration program in 2010.

Drilling - Wilcox Formation

In 2010 Strike Energy has commenced a new onshore Gulf Coast exploration program on two fronts.

In Louisiana, Strike Energy has recently farmed into a new exploration joint venture (the Bateman Lake Joint Venture) with Texana Resources based in Houston. Strike Energy will be taking 10 - 15% Working Interests initially in the prospects generated.

In Texas, Strike Energy and its partners in the Eaglewood Joint Venture are participating in an onging exploration drilling program on prospects which lie on the same trend as the Rayburn and Mesquite producing fields. These prospects are similar in nature to the Rayburn and Mesquite discoveries being also located in the prolific Wilcox Formation. Some of these prospects will have prospective resource potential the order of 50 to 100 Bcf. Strike Energy has a 30% Working Interest in these prospects.

In February 2010 Strike Energy achieved its third discovery from a total of five exploration wells drilled to date (ie a 60% exploration success rate) with the Gardner Duncan 1 well. Final hydrocarbon volumes are still being assessed from this well, which is regarded as having the potential to double the company's oil and gas reserve base.

Overall, up to ten new exploration wells are planned across the two joint venture project areas for 2010.

AUD$0.190 (+0.005)

Copyright © 2010 Strike Energy