STRIKE ENERGY LIMITED — Capital/Financing Update 2007

Dec 18, 2007

ASX Announcement ASX Code: STX

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19 December 2007
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Strike Oil Limited ABN 59 078 012 745

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The Company Announcement Officer Australian Stock Exchange Ltd via electronic lodgement

RAYBURN PROJECT – DRILLING AND TESTING PROGRESS FAVOURABLE RESULTS LEAD TO FOURTH WELL PROPOSAL

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Our Strengths
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• Producer/Explorer with strong cash flow

Strike Oil is pleased to provide the following report on its Gulf Coast production testing and development drilling at the Rayburn Project.

• Gilbert Freeman 1 drilling ahead at 9,800 feet (2,987 metres)

• Fourth well (Hlavinka Duncan 1) proposed to immediately follow Gilbert Freeman 1

• Duncan 1 production testing continuing with gas and condensate oil being sold

• Duncan 2 testing in February 2008

• Track record of discoveries

• Geographically diverse portfolio

• Highly experienced team

• Strong experienced partners

• Innovative approach to E&P

RAYBURN PROJECT – WHARTON COUNTY

(Strike Oil: 22.8% Working Interest, Operator: Cypress E&P Corporation)

Gilbert Freeman 1

The 9 5/8 inch casing was successfully set and tested during the week at a depth of 8,300 feet (2,530 metres).

At 6am Texas time on Tuesday 18 December (9pm Perth time) the well was drilling ahead at a depth of 9,800 feet (2,987 metres) in 8 1/2 inch hole. The well is expected to penetrate the target within the next week.

The well is located approximately 1,450 feet (442 metres) north of the Duncan 1 discovery well and is targeting the same Middle Wilcox Pay Sands encountered in the Duncan 1 and Duncan 2 wells.

The proposed total depth of the well is 12,200 feet (3,719 metres).

Strike Oil Limited Level 9, Wesfarmers House 40 The Esplanade Perth WA 6000 Tel: 08 6464 0400 www.strikeoil.com.au

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Strike Oil Limited ABN 59 078 012 745

Hlavinka Duncan 1

Following the very favourable results so far achieved in Duncan 1 and Duncan 2 ST#1 the operator has proposed the drilling of another well, the Hlavinka Duncan 1, immediately after Gilbert Freeman 1.

Further details will be released after the well has been approved.

Duncan 1

Production testing continued during the week. Gas and oil-condensate continue to be produced to sales at commercial rates. Rates are anticipated to be released within the next few weeks.

Duncan 2

Production testing is now scheduled for February 2008. This well is located approximately 4,550 feet (1,380 metres) southwest of the Duncan 1 well.

Commenting on the progress of the Rayburn Project, Strike Oil’s Managing Director Simon Ashton said;

“The results from Duncan 1and Duncan 2 have been very encouraging and we applaud the operator’s proposal to maintain an active drilling programme to delineate the Rayburn field. The progress to date is in line with our comments at this year’s AGM where we anticipated development drilling would be ongoing based upon success”.

Yours faithfully

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SIMON ASHTON Managing Director

Further information:

Strike Oil Limited

• Simon Ashton - Managing Director T: 08 6464 0400

• E: strike@strikeoil.com.au

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