Strike Energy Reports Large Resource Increase in PEL 96 in South Australia

Strike Energy Limited (Strike or the Company) revealed Wednesday that following the successful completion of the recent PEL 96 appraisal drilling program in South Australia, the Company announced an increase in the Pmean (best) estimate prospective resource in petroleum exploration license (PEL) 96 (Strike 66.67 percent and Operator, Energy World Corporation Limited 33.33 percent) to 6.8 Trillion cubic feet, or Tcf (recoverable sales gas), 4.5 Tcf net to Strike.

PEL 96 is a significant component of the Company’s Southern Cooper Basin Gas Project and Strike is focused on the rapid commercialization of a portion of the resource within the Phase One Area of the permit. This 54 square mile (141 square kilometer) area is centered directly under the Moomba to Adelaide Gas Pipeline (MAPS) which connects the resource to the Eastern Australian gas markets.

Within the PEL 96 Phase One Area, the Company’s Pmean (best) estimate of the prospective resource has increased to 1.2 Tcf (recoverable sales gas, net to Strike).

Managing Director's Quote

Managing Director, David Wrench, said:

“This is an important milestone for Strike, advancing the Company toward commercialization of our Southern Cooper Basin Gas Project. The increasing scale of our gas resource reinforces the enormous value that successful commercialization will deliver.

Our next goal is to demonstrate that the thick Patchawarra coals within Strike’s permit areas are capable of sustained gas flows to surface through completion and production testing of the Le Chiffre and Klebb wells, with work planned to commence next quarter. The initial production testing program will be the first stage of a drilling, completion and production optimization program designed to establish commercial well productivity.

Strike has delineated a very substantial gas resource and established gas supply agreements with Orica Ltd and Orora Ltd. Demonstration of the commercial potential of the gas resource is now our key focus.” he said.


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