Exploration - Gulf Coast, Texas

Strike Oil participates in wells as a non-operator under an agreement with Cypress E&P Corporation.  This agreement provides Strike Oil 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’ gas reserves and about 6% of its remaining oil.
Strike Oil is focusing its participation on gas prospects because of the high prices.

Highlights for April to June 2008:

During the quarter the Company increased its working interest in the Eaglewood Area Participation Agreement in onshore Gulf Coast, Texas from 25% to 30%.

The Agreement controls the relationship that Strike Oil has with Cypress E&P Corporation in the Gulf Coast exploration programme where prospects containing greater than 400 bcf of prospective resource have been located and are being prepared for drilling.

In addition to the increase in its overall interest under the Agreement, Strike Oil increased its interest in the Flint Prospect from 25% to 35%. The Flint Prospect is a specific exploration project within the Eaglewood Agreement which has a 50 bcf prospective resource.

Planned for July to September 2008:

Further exploration wells are planned for later in the calendar year to allow for the near term focus on development drilling aimed at increasing production and revenues from the Rayburn project.   Please see the Drilling Program for additional scheduling information.

Drilling activity in Wharton County, Texas.

Why Strike Oil is exploring in the Gulf Coast, Texas, USA.

• prolific onshore oil and gas province, lowers exploration risk;
• multi-objectives per well, enhances chance of discovery;
• significant oil and gas infrastructure, provides ready access to markets;high gas price, increases revenue;
• small discoveries (<5 Bcf) can be economic, lowers commercial success risk;
• short period between discovery and production (<60 days), accelerates cash flow;
• modern non-propriety 3D seismic data and well data available, reduces costs;
• technical and management staff with first-hand experience, reduces learning curve;
• long relationship with Operator (prior to Strike Oil), provides confidence in ability; 
• opportunities to learn and transfer new technology, increases success elsewhere.

 

 

Copyright © 2007 Strike Oil | Harmonic New Media