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Following the successful drilling results from the Duncan 1 well on the Rayburn Gas Discovery, onshore Gulf Coast, Texas the Board of Strike Oil Limited has approved a US$15 million (net to Strike) expanded drilling and development program.
The drilling program, scheduled to commence in October 2007 and planned over a 12 month period, includes six new primarily development wells targeting the gas pay zones penetrated in the Duncan 1 well on the Rayburn discovery. A few of the wells are expected to be combined development and exploration wells with offset exploration targets on the large Rayburn Prospect (500 Bcf) and other wells may include further exploration drilling from the Canyon (20 Bcf), Rodeo (240 Bcf) and Flint (40 Bcf) prospects.
Revenues from a successful development drilling program are expected to increase Strike Oil’s current income stream from US$8.6 million in 2006/2007 to more than US$20 million in the 2008/2009 year and place the Company in a cash flow positive position.