OilVoice - Strike Energy US Gas Discovery Could Double Company's Reserves

Strike Energy US Gas Discovery Could Double Company's Reserves

Friday, February 19, 2010

Strike Energy Limited announces that it has made, what it believes to be, a significant commercial gas discovery at its Gardner Duncan 1 well in the onshore Gulf Coast of the US.

Gas pay zones have been interpreted based upon the wireline logging and mud logging results in the primary objective. The results are in line with pre drilling expectations and the well is now being prepared for production testing to confirm commerciality.

The forward plan is to run casing, install facilities, negotiate gas sales contract and test the well to sales. We estimate this work to take in the range of 4 to 6 weeks.

The Gardner Duncan 1 well is located on the Louise Prospect. Reserves will be determined from production performance of the Gardner Duncan 1 well and future development wells. Strike has a 30% interest in the prospect which is located in Wharton County, Texas, 9 km northwest of the Company's existing Rayburn Project.

Strike's share of the prospect has the potential to double the Company's current reserve position.

Preparations are underway to start drilling the next exploration well in the Gulf Coast. This target is a 100 Bcf scale prospect in the Wilcox Formation. Success with this well could treble Strike's reserve inventory.

Strike's Managing Director, Simon Ashton commented that:
'These results are extremely encouraging and add to the outstanding success we are experiencing in the onshore Gulf Coast. We now look forward to the next exploration well which is on a 100 Bcf prospect due to spud later this quarter'.

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