Strike Energy Limited

Strike Energy’s wholly-owned subsidiary Hybrid Energy Australia Pty Ltd (Hybrid Energy Australia) has exploration licences covering lignite deposits near Kingston in south-eastern South Australia. These licences provide the rights to evaluate the potential for coal seam gas, combustion/gasification and in-seam gasification of the coals. A Competent Person report prepared in May 2007 identified a JORC compliant resource of 578.3 Mt (523.5 Mt of Measured Resource and 54.8 Mt of Indicated Resource).

FuturGas Project

The FuturGas Project is Hybrid Energy Australia’s initiative to develop part of the Kingston lignite resource.

The project has been advanced to incorporate a coal-to-liquids gasification facility with integrated electricity generation, and will evaluate carbon capture and storage technology. The FuturGas facility will have a potential production output of 10,000 barrels of petroleum liquid fuels per day and 40MegaWatts of electricity surplus to the project's own needs.

The project has the potential to play a key role in meeting Australia’s growing demand for liquid fuels and low emissions power in an environmentally responsible manner.

In response to the difficult market conditions, the Company has implemented a plan designed to advance the FuturGas project with a reduced cost base until an investment partner is secured to commence the prefeasibility study.

Results for June Quarter:

Gasification trials conducted by the Department of Chemical Engineering at the University of Adelaide on samples of Kingston coal continued to deliver very promising results. The trials are scheduled to be completed in the first quarter of 2010.
Mine dewatering and reinjection modelling concluded during the quarter, indicated that reinjection of all the groundwater back into the originating aquifers within a few kilometres of the mine is technically achievable.
The Company continued its efforts to source an investment partner to fund the prefeasibility study (PFS) phase for the project.

Planned for September Quarter:

Further gasification testing of the Kingston coal.
Continue to seek an investment partner.

Visit Hybrid’s website to learn more: www.HybridEnergyAustralia.com.au