Ann: Half Year Financial Report, page-2

The Company completed the drilling and completion of West Erregulla-2 (WE-2) and conducted a multirate flow and pressure build-up test. During this testing period WE-2 flowed gas to surface from the Kingia sandstone from 48 metres of perforations across the target interval of 4,799m – 4,951m measured depth. At the largest choke setting (2-inch), the well flowed at a rate of 69 mmscf/d with a wellhead pressure of 700 psig, showing excellent pressure support for future production. After the initial resource estimate at West Erregulla of 1.185 TCF 2C (gross) it is believed to be one of the largest conventional gas fields discovered onshore Australia. The discovery at West Erregulla has proven the existence of a deep, conventional gas fairway within the Permian sequence of the Perth Basin. We believe this fairway is highly likely to extend into Strike’s 100% owned permits to the south and east. This discovery, together with the outcomes of neighbouring operators’ activities, validates Strike’s commercial and geological strategy. Strike now holds the largest land and equity position within what is fast becoming one of Australia’s most prolific onshore conventional gas basins. Strike is targeting an FID for the Phase-1 development of West Erregulla at the end of Q4 2020, and we continue to advance this milestone as the Company’s highest priority. Strike continued to plan and execute further exploration activities over its extensive Perth Basin position during the half. During the period the Company completed the Walyering 3D seismic acquisition, which delivered high quality data from over 90 km² of the Walyering field. The acquisition was completed on time and represents the beginning of an exciting exploration program that will continue within the Strike 100% owned Perth Basin acreage throughout 2020. The 3D seismic was shot over a known hydrocarbon accumulation, and upon initial inspection is of a high quality and is the first dataset of its kind generated within the broader area. Strike will now look to identify drilling targets for future programs. Strike has 100% equity ownership of the Walyering prospects within EP447 as well as the adjoining leases. Uplifts in prospectivity from the new 3D seismic may have a compounding effect on Strike’s surrounding acreage.