Production - Gulf Coast, Texas

Mesquite - The Mesquite project in Jackson County, Texas produces from 4 wells which were completed in the Wilcox Formation between January and July 2006. Strike Oil has a 26.25% working interest in the project. Its Net Revenue Interest is approximately 20%.

West Bernard Unit - During 2006, Strike Oil acquired, as part of its exploration leasing programme, approximately 10% working interest in the West Bernard Unit in Wharton County, Texas. The 4 wells in the unit produce from the Cook Mountain, Frio and Miocene formations at low rates.

Rayburn – Production from the Rayburn Project commenced in November 2007. As of August 2008, the field has five wells producing from the middle Wilcox Formation and one well producing from a shallow formation. Initial production rates for most wells in the Wilcox Formation have exceeded 10 MMcfgd and 250 bcpd.

Drilling and testing operations on the Rayburn Project are expected to continue throughout 2008

Highlights for April to June 2008:

• Oil and gas revenue for the quarter was $9.22 million, up 165% on the previous quarter.
• Gas production was up 88% for the quarter and oil condensate production increased by 129%.
• Four Rayburn wells successfully tested and brought onto production (one subsequent to end of quarter). 
• The eighth well on the Rayburn Project, Hlavinka Gas Unit 1-1, spudded in July 2008.

Production (Strike Oil Working Interest)	June Quarter	March Quarter	Movement
Gas (mmcf)	537	285	88%
Oil (bbl)	15,310	6,695	129%

Planned for July to September 2008:

• Complete drilling of the Hlavinka GU 1-1 well at the Rayburn Project.
• Flow test the Gilbert Freeman 2 and 3 wells on the Rayburn Project directly to sales.
• Drill up to two more development wells at the Rayburn Project.
• Carry out an independent reserve assessment of the Rayburn Project./li>

 

 

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