Strike Oil Exercises Option for Cooper-Eromanga Basin Acreage

Strike Oil has exercised its option to take an undivided 15% interest in Cooper Basin Permit ATP633P in SW Queensland which is operated by Beach Petroleum.

Strike will participate in the Kewarra-1 well scheduled to be spudded around March 25, 2007.The Kewarra prospect is defined by the recent Gidgee 3D seismic and is located around 4 km west of the Munro Oilfield and around 1.5 km northeast of the 1989 Gidgee-1 well, which flowed in excess of 1,000 barrels of oil per day. The well has multiple targets including the Hutton and Patchawarra sands and is programmed to drill to 1600 m.

The permit has a significant number of large prospects which were detailed by the Gukithi 2D seismic survey in 2006. The interpretation of this survey is anticipated to provide further drilling locations which will be considered for drilling before the end of this year. The key prospects are around 10 km south and up-dip from the Tickalara Oilfield complex which is produced into the Jackson - Moonie pipeline.