Strike Oil Completes Operations at Altostratus 1

Strike Oil reports that the Altostratus 1 in Permit TP/17 has completed wire-line logging and well evaluation. The well has subsequently been safely plugged and abandoned and the Ensco 56 jackup released from location and contract.

Wire-line logs and Sidewall Cores combined with previous drill cuttings information provided the following conclusions:

Target intervals were encountered on depth prognosis.

The reservoir quality in the top three target intervals, the Stag Sand (M.australis) and the Jurassic Athol Sands (C.halosa and N.gracilis) are confirmed as poor quality sandstone reservoirs. Minor oil and gas shows observed in these intervals are therefore considered to have no commercial significance at this location. The geological explanation for the unexpectedly poor quality reservoir encountered has yet to be determined.

The fourth target interval, the Triassic Mungaroo Formation, encountered good quality sandstone with a three metre oil column at the top of the target interval. This oil discovery is unlikely to be commercially significant at this location.

The oil discovery in the Triassic Mungaroo Formation, and the hydrocarbon shows in the shallower targets, confirms the area is within an active petroleum system and provides encouragement for further exploration in the permit, especially in the larger Triassic prospects which are mapped nearby.

This well, the first in the permit and the first offshore well operated by Strike Oil, was drilled without safety and environmental incident and was completed on budget. This represents a significant achievement for the company, endorsing its operating credentials and placing it in a competitive position with the larger exploration companies.

Interests in the Permit TP/17 are Strike Oil Limited as Operator with 90% and Bow Energy Limited with 10%

Strike Oil now looks forward to its participation in the Boojum 1 well in Permit TP/18, the second well of a five well program. Boojum 1 will be operated by Tap Oil and is scheduled to start drilling around December 16th..

Interests in the Permit TP/18 are Tap Oil Limited as Operator with 50% and Strike Oil Limited with 50%.