Strike to Begin Carnarvon Basin Exploration Program Soon

Strike Oil announced that the commencement of its drilling program of five wells in the Carnarvon Basin is due to begin on November 29, 2004.

Altostratus No1 in permit TP/17 is the first of the five wells to be drilled. The prospect contains four separate target horizons with a total recoverable oil potential of greater than 50 million barrels. The well is programmed to take around 6 days to drill at a budgeted cost of around $2.5million. Strike Oil has a 90% interest in the well.

Forthcoming wells in the Carnarvon Basin Drilling program are Boojum1 in TP/18 to be drilled in December; Cooper 1 in EP 325 to be drilled in December; Vesta 1and Gats 1 in WA-261-P both of which will be drilled in the first quarter of 2005. All five wells are designed for cost effective exploration drilling. It should be noted that these exploration wells have not been designed for flow testing and conversion into production wells should hydrocarbons be discovered.

Should significant hydrocarbon shows be encountered a comprehensive evaluation program will be undertaken, including: -

a. Wireline logging, drill cuttings evaluation, side wall coring, wireline flow testing and collection of reservoir fluids and evaluation of formation pressures.

b. Drilling of a side-track borehole to obtain a reservoir core.

On completion of such evaluation the wellbores and any productive formations within the bore will be permanently sealed and the well left in a safe condition.

The evaluation program is designed to confirm the presence of producible hydrocarbons, establish the reservoir characteristics, obtain pressures and collect samples for hydrocarbon analysis. This data will be used to estimate the size of any hydrocarbon accumulation and to provide information to design subsequent appraisal and development program including production tests.