Strike Energy Limited

Exploration

Strike Energy participates in exploration activities as a non-operator under an agreement with Cypress E&P Corporation. This agreement provides Strike Energy with access to ongoing exploration and appraisal opportunities in the Gulf Coast, Texas in selected parts of Jackson, Wharton and Fort Bend counties immediately to the west of Houston. The onshore Texan Gulf Coast is estimated to contain about 30% of Texas’ conventional gas reserves and about 6% of its remaining oil.

Results for September Quarter:

No drilling occurred during the quarter as the Company and its joint venture partners continued to monitor reduced rig rates, which have now fallen approximately 50% from their peak in 2008, with associated services and consumable rates down by approximately 25%.
Cypress E&P continued to generate new high quality prospects and new land leasing focusing on the Wilcox Trend on-shore Gulf Coast Texas.

Planned for December Quarter:

US Exploration

US onshore Gulf Coast exploration is set to re-commence with the Eaglewood Joint Venture committing to drill the Louise prospect from November 2009 and up to three further wells expected to be drilled to 30 June 2010.

Past drilling has proved 1P Reserves with an EUR of 71 Bcf equivalent from drilling targets assessed as having 200 Bcf pre-drill potential (on a 100% basis).

Overall, the Joint Venture has prospects with pre-drill potential resources of 660 Bcf in which Strike’s Working Interest is 30%.

Drilling activity in Wharton County, Texas.