Strike Oil Increases Interest in Tow Creek Field, Colorado

Strike Oil intends to exercise its option to increase its working interest in the Tow Creek Project in Colorado from 25% to 37-1/2%.

Comet Ridge Limited the operator of the project recently announced they had also increased their interest to 37-1/2%. This gives the following interest in the project:

Strike Oil Limited: 37-1/2%
Comet Ridge Limited (operator): 37-1/2%
US private interests: 25%

Comet Ridge has acquired a lease position covering close to 9,000 acres over the Tow Creek anticline. Over 5 million barrels of oil have been produced from fractured shale reservoirs in a number of fields in the structure. Comet Ridge is planning on extending and redeveloping the old fields using directionally drilled, sub-horizontal to horizontal holes designed to maximize the number of fractures intersected.

A grid of conventional 2D seismic lines has been acquired and the data are currently being reprocessed to optimize the initial drilling locations.

First drilling is planned for second quarter 2006.

Commenting on the decision to increase it's working interest, Strike Oil's Managing Director said: "This decision provides Strike Oil with a more material position in this exciting project involving rejuvenating oil production and accessing new reserves from old oilfields utilizing specialist drilling techniques".