pem - redrilling commencing

Anyone prepared to comment on the casino 1 drilling particularly that gas shows have been recorded from depth of 1743 to current depth which is at 1797. the indications in previous reports suggest that casino 1 could potentially capitalise strike oil at $150-$250 million with pem owning a third of strike. pem's current market capitalisation is $95 million.


Strike Oil - VIC/P44 - Casino 1 Progress Report

Document date: Wed 11 Sep 2002 Published: Wed 11 Sep 2002 12:01:09
Document No: 222810 Document part: A
Market Flag: N
Classification: Progress Report
PERILYA LIMITED 2002-09-11 ASX-SIGNAL-G

HOMEX - Perth

+++++++++++++++++++++++++
Strike Oil NL (Perilya 34.3%) advises that the extreme weather
conditions that have prevented recommencement of drilling operations
have improved significantly.

As at 06.00 hours EST on Wednesday the 11th September 2002 the Ocean
Bounty Semi-submersible drilling rig has drilled the Casino 1 well in
exploration permit VIC/P44 to a depth of 1797 metres, encountering
gas shows over the interval from 1743 - 1797 (current depth). The
significance of the earlier gas shows cannot be assessed until this
programme has been completed.

Current operation: Preparing to resume operations as sea conditions
improve.

Forward plan: To drill ahead to total depth and then conduct a
wireline evaluation programme to establish
reservoir quality, reservoir pressures and
recover gas samples.

Estimated time to
total depth: Approximately 1 - 2 days from recommencement of
drilling operation.

The VIC/P44 Permit interests comprise a joint venture between Santos
(operator) 50% and Strike Oil 50%


J Traicos
COMPANY SECRETARY