Strike Oil Cases Third Well on Rayburn Project, to Spud Fourth

Strike Oil is pleased to provide the following report on its Gulf Coast production testing and development drilling at the Rayburn Project.

The Gilbert Freeman 1, the third well on the Rayburn Project, is currently being cased for production testing. The well reached a total depth of 12,205 feet (3,720 meters), and initial reports show the well penetrated the targeted Middle Wilcox pay sands.

Casing is currently being run across all the potential pay sands. Upon the completion and successful testing of the casing the rig will be moved off location and the well suspended for production testing in early 2008.

Additionally, the Hlavinka Duncan 1, the fourth well on the project, is due to spud early January 2008. The well is located approximately 9,700 feet (2,957 meters) northeast of the Duncan 1 well. The proposed total depth is 12,650 feet (3,856 meters). The well is expected to take about 30 days to drill.

Duncan 1 production testing continues with gas and condensate oil being sold. Testing of the Duncan 2 should begin in February 2008. This well is located approximately 4,550 feet (1,380 meters) southwest of the Duncan 1 well.

Cypress E&P Corp. is the operator of the project while Strike Oil holds 22.8% working interest.


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