Ann: STX: West Erregulla Update, page-47

Strike Energy Limited (STX), Improved conventional pays in the Wagina STX has announced logging while drilling (LWD) results from West Erregulla 4 (WE-4) secondary targets indicating a net pay of 35-40m with average porosity of 6% in the Dongara and Wagina sandstones over a gross column of 206m. The company is now preparing to run detailed wireline logging to confirm the results. STX will then press ahead to the primary targets in the Kingia and High Cliff sandstones (Figure 1). The conventional net pay of 35-40m in STX’s secondary target is thicker than other analogues in the basin including WE-2 (10.2m) & WE-3 (6m) as well as Beharra Springs (10.4m), which has been in production since 1991 producing in excess of 200Bcf of gas during that time. As a result, we maintain a high level of confidence in the Wagina gas discovery at West Erregulla and expect the current P50 estimate of 273Bcf to be converted to a 2C Resource post flow testing. We maintain our BUY and TP of A$0.58/sh.latest from Petra