STRIKE ENERGY LIMITED — Capital/Financing Update 2007

Dec 11, 2007

ASX Announcement ASX Code: STX

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The Company Announcement Officer Australian Stock Exchange Ltd via electronic lodgement

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12 December 2007
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Strike Oil Limited ABN 59 078 012 745

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RAYBURN PROJECT – DRILLING AND TESTING PROGRESS

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

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Our Strengths
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• Producer/Explorer with strong cash flow

RAYBURN PROJECT – WHARTON COUNTY

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

• Gilbert Freeman 1 drilling ahead at 4,545 feet (1,385 metres)

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

• Track record of discoveries

• Geographically diverse portfolio

• Highly experienced team

• Duncan 2 testing in January 2008

Gilbert Freeman 1

The 13 3/8 inch casing has been successfully set and tested at a depth of 2,520 feet (768 metres). At 6am Texas time on Tuesday (9pm Perth time) the well was drilling ahead at a depth of 4,545 feet (1,385 metres) in 12 ¼ inch hole.

• Strong experienced partners

• Innovative approach to E&P

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).

Duncan 1

Production testing continued during the week. Gas and oil-condensate are being produced to sales at commercial rates.

Duncan 2

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

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

Commenting on the initial test results from the Duncan 1 well, Strike Oil’s Managing Director Simon Ashton said;

“We are very encouraged by the gas and condensate oil flow rates recorded to date which are in line with expectations and comparable to well performances in similar reservoirs in on-trend adjacent fields. This reflects the favourable quality of the reservoir. A rate will be reported once it is determined that the rate is representative of the well’s ongoing performance”

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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