STRIKE ENERGY LIMITED — Capital/Financing Update 2007

Oct 23, 2007

ASX Announcement ASX Code: STX

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24 October 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

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

GULF COAST, TEXAS

Rayburn Project – Texas Gulf Coast

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

Our Strengths

• Producer/Explorer with strong cash flow

• Track record of discoveries

• Duncan 2 well spudded

• Geographically diverse portfolio

• Duncan 1 testing commenced

• Highly experienced team

The Duncan 2 well spudded on 22 October and has a proposed total depth of 12,200 feet (3,719 meters). The well is currently drilling ahead at 2,670 feet (814 metres) and is targeting the high quality Middle Wilcox gas pays interpreted from the drilling of the adjacent Duncan 1 well.

The testing of the deeper prospective intervals (Lower Wilcox) in the Duncan 1 well is progressing as planned. As reported previously this testing program will have a duration around 60 to 90 days. Interim test results are expected to be reported within 30 to 40 days.

• Strong experienced partners

• Innovative approach to E&P

Yours faithfully

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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