Strike Oil Expands Carnarvon Basin Drilling Program

Strike Oil will participate in the drilling of a further two wells in the Carnarvon Basin, increasing its drilling program in the basin to a total of five wells. The two additional wells are due to be drilled in the first half of 2005, with the first of the five wells, Altostratus 1, due to commence drilling in mid to late November 2004. (Refer Figure 1)

Strike Oil holds a 16.2% interest in Permit WA-261-P where the Operator (Apache Energy) has proposed the drilling of the two wells, Vesta 1 and Gats 1, with prospect recoverable oil potentials of 20 and 33 million barrels of oil respectively. Strike Oil also holds significant upside exposure to similar prospects immediately to the south in TP/17 where it has a much larger 90% interest. The potential associated with these prospects in TP/17 would be greatly enhanced by success in the planned drilling at Vesta 1 and Gats 1.

Strike Oil had previously elected not to participate in the drilling of the Vesta 1 well. However, further technical work has improved the view of the prospectivity indicating greater potential for an oil accumulation at the Vesta 1 location, up-dip of an interpreted residual oil column encountered in the Ceres 1 well.

Strike Oil Managing Director, Simon Ashton said, "We also intend to develop further drilling prospects by undertaking a major seismic survey planned for the first half of 2005. The expansion of the current drilling program and the planned seismic survey, demonstrates our commitment to maximising opportunities for significant growth through exploration success in the extensive acreage position held in the Carnarvon Basin".