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Strike Energy Reports Elevated Gas Readings at Le Chiffre 1 Well in PEL 96

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Strike Energy Limited (Strike) reported Thursday that the Le Chiffre 1 well in petroleum exploration license (PEL) 96 in South Australia's Southern Cooper Basin Gas Project has reached a revised total depth of 6,853 feet (2,089 meters) and the well is being conditioned prior to logging and casing.

Preliminary analysis of the mud logs and core recovered indicate that the well has penetrated a 1,968 foot (600 meter) section encompassing the Toolachee Formation, the Roseneath Shale, Epsilon Formation and Murteree Shale (together the REM Group) and the Patchawarra Formation.

In excess of 278 feet (85 meters) of coal has been cored with additional coal intervals also encountered. The total coal thickness in the well will be determined following analysis of log results.

Elevated gas readings were recorded across all coal intervals with gas concentration increasing with depth as expected.

These preliminary results confirm that a very significant coal system is present in the Weena Trough in PEL 96 and exceed Strike’s pre-drill expectations. Further logging, testing and analysis of the Le Chiffre well together with the results from the next well to be drilled in the program, Klebb 1, will support the pilot production testing program, planning for which is already underway.

Le Chiffre 1 Details

The Le Chiffre 1 well is being drilled by the PEL 96 joint venture (Operator Strike 66.7 percent and Energy World Corporation 33.3 percent) and is located approximately 65 miles (105 kilometers) south-south west of Moomba and 2.4 miles (4 kilometers) east of the Moomba to Adelaide Pipeline (MAPS).

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