STRIKE ENERGY LIMITED — Capital/Financing Update 2007

Nov 8, 2007

ASX Announcement ASX Code: STX

==> picture [262 x 53] intentionally omitted <==

The Company Announcement Officer Australian Stock Exchange Ltd via electronic lodgement

Hybrid Energy SA

==> picture [262 x 28] intentionally omitted <==

----- Start of picture text -----

Date: 9 November 2007
----- End of picture text -----

Strike Oil Limited ABN 59 078 012 745

==> picture [106 x 114] intentionally omitted <==

Strike Oil Limited is moving rapidly to provide dedicated management and funding for its wholly owned subsidiary Hybrid Energy SA Pty Ltd (“Hybrid Energy“) which is to be demerged from Strike Oil in early 2008.

Hybrid Energy has now established its presence in Adelaide, South Australia under the direction of Barry Ford the managing director with further key management being recruited and ongoing stakeholder communication well advanced.

Shareholder attention is drawn to the attached article summarising Hybrid Energy’s FuturGas Project in South Australia which was published by Pex Publishing in its issue of “Energy Alternatives “on 1 November 2007.

(Energy Alternatives is a publication highlighting key energy developments in Australia published monthly by Pex Publishing and widely distributed in Australia and overseas)

Our Strengths

• Producer/Explorer with strong cash flow

• Track record of discoveries

• Geographically diverse portfolio

• Highly experienced team

• Strong experienced partners

• Innovative approach to E&P

Permission has been received from Pex Publishing to reproduce this article to Strike shareholders.

Yours faithfully

==> picture [67 x 40] intentionally omitted <==

SIMON ASHTON Managing Director Strike Oil Limited

Further information:

Strike Oil Limited Simon Ashton - Managing Director T: 08 6464 0400 E: strike@strikeoil.com.au

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

==> picture [502 x 207] intentionally omitted <==

Alternatives

Striking a low emissions initiative with Hybrid

Oil and gas production and exploration company Strike Oil is staking its claim in the alternative energy sector with its FuturGas project, this month announcing the formation of Hybrid Energy SA Pty Ltd. With proposed headquarters in Adelaide, the company has been formed to hold Strike’s North Otway Basin resource and progress the FuturGas project.

Hybrid proposes to apply proven clean coal and low-emissions technology to develop the first stage of the FuturGas project. This will involve generating electricity at carbon emission levels in line with some existing gas-fired facilities, and at levels significantly below those of existing coal-fired power stations in Australia.

Hybrid is currently a wholly-owned subsidiary of Strike Oil, but plans are being forged to demerge the companies in order to seek, via an Initial Public Offering, ASX listing for Hybrid. Should the demerger be successful, Strike shareholders will receive pro-rata share holdings in the new company. It is expected that the IPO will be in place by the first half of 2008.

Hybrid holds petroleum and mineral exploration licenses over large lignite or ‘brown coal’ deposits in southeast South Australia. The proposed FuturGas project will develop coal-to-gas and carbon capture and storage (including geosequestration) operations from this 578 million tonne resource. The aim is to produce low greenhouse emissions power, gas, transport fuels and other products, in a sustainable manner.

The carbon capture and storage processes will be conducted in conjunction with the establishment of carbon storage sites, taking the project on the pathway to zero emissions. Geosequestration, a process which involves the storage of carbon dioxide from major energy-related sources into geological reservoirs deep below the ground, is one method to be developed through the project. The carbon dioxide will be separated, compressed and transported by pipeline for injection into suitable underground traps.

The technology to be used is already in operation in Europe, and can generate electricity with significantly lower carbon emissions than existing Australian plants.

==> picture [403 x 514] intentionally omitted <==

“The company is extremely conscious of local issues with respect to the environment and water management and intends to ensure that the project complements and enhances environmental and water management policies in the region,” said Mr Ford.

In relation to this, Hybrid is planning to use a small-footprint mining method which will be waterneutral.

A Scoping Study outlining key steps in FuturGas’s feasibility process has been completed, and the viability of the project will be assessed over the next two years. Potential sites for the operation, located about 250km south of Adelaide and strategically located on the power grid that links South Australia and Victoria, will also be decided upon during this time.

To fund the feasibility stage of FuturGas, Strike Oil proposes to offer shareholders and the public the opportunity to subscribe for shares in Hybrid Energy SA, and as such is seeking to list the company on the ASX. The proposed terms of the demerger and entitlement issues will be announced this quarter.

Contact: Barry Ford Managing Director Hybrid Energy SA Pty Ltd Tel: (08) 8412 4100 Email: barry.ford@hybridenergysa.com.au

==> picture [186 x 115] intentionally omitted <==

Contacts:

Chief Editor: Paul Sullivan Email: Paul@pex.com.au

Editor: Rachel Seeley Email: Rachel@pex.com.au

Address: Unit 5 / 1 Almondbury Road Mt Lawley, WA 6050

Telephone: (08) 9272 6555 Facsimile: (08) 9272 5556