hd1 update. good and bad

ASX Announcement ASX Code: STX
21 January 2008
Strike Oil Limited
ABN 59 078 012 745
Our Strengths
• Producer/Explorer with
strong cash flow
• Track record of
discoveries
• Geographically diverse
portfolio
• Highly experienced team
• Strong experienced
partners
• Innovative approach to
E&P
Strike Oil Limited
Level 9, Wesfarmers House
40 The Esplanade
Perth WA 6000
Tel: 08 6464 0400
www.strikeoil.com.au
The Company Announcement Officer
Australian Stock Exchange Ltd
via electronic lodgement
RAYBURN PROJECT - OPERATIONS UPDATE
Rayburn Project – Texas Gulf Coast
(Strike Oil: 22.8% Working Interest, Operator: Cypress E&P Corporation)
Hlavinka Duncan 1
The Hlavlinka Duncan 1 well has reached a depth of 7,800 feet and has encountered a substantial gas show in the well. A downhole mechanical problem associated with the drilling equipment coupled with this gas occurrence has resulted in the need to activate the BOP’s (blow out prevention equipment). The well is currently shut in and under control at the surface however part of the drilling assembly remains in the hole. Well control experts are now on location to help determine the future plan of operations.
The gas shows are interpreted to be associated with a sandstone interval in the Cook Mountain Formation which is a substantial productive horizon in the area. The significance of these gas shows cannot be determined until the section can be wireline logged and ultimately tested if warranted.
The Hlavinka Duncan 1 well is programmed to drill to a total depth of 12,600 feet targeting primarily the Middle Wilcox Formation gas pay zones which have been encountered in the previous three wells, the Duncan 1, Duncan 2 and the Gilbert Freeman 1.
Strike Oil Limited
ABN 59 078 012 745
Strike Oil’s Managing Director Simon Ashton commenting on the situation stated that:-
“While these substantial gas shows from a formation significantly shallower than the primary objective of the well are very encouraging the immediate concern is to resolve the drilling operational issue and resume normal operations.”
Yours faithfully
SIMON ASHTON
Managing Director
Further information:
Strike Oil Limited
Simon Ashton - Managing Director
T: 08 6464 0400
E: [email protected]