Strike Oil Finds Additional Gas Pay at Duncan-1

Strike Oil confirmed some target intervals of interest which had elevated gas readings on wireline logs as further gas pay and are to be completed for production testing. This confirmation followed the successful drilling of the Lower Wilcox section in the Duncan 1 well, in the Texas Gulf Coast region. The Duncan 1 well is located on the Rayburn Prospect in Wharton County (Strike Oil: 22.8% working interest. Operator: Cypress E&P Corporation)

Plans are now underway to complete the well for production testing of the new pay zones in the Lower Wilcox, before production testing the previously reported gas pay within the shallower Middle Wilcox section already secured behind casing.

The well has confirmed a trapping structure at multiple levels in the Wilcox Formation. The reserves potential of the pay zones in this well, and over the larger associated structure, will be determined by the planned production testing program and further development drilling. The production testing is planned to commence following completion of the well. Commenting on the results, Strike Oil’s Managing Director, Simon Ashton said:

“The production testing of these deeper gas pay zones, coupled with the shallower gas pay, is anticipated to provide an early improvement to cash flow. This could be further increased by near term development drilling on the extensive lease position, the order of 10,000 acres, held over, and adjacent to, the structure on which the discovery has been made. In addition, planned exploration on new Wilcox prospects currently being lined up for future drilling could further enhance Strike’s production position”.