STRIKE ENERGY LIMITED — Capital/Financing Update 2007

Jul 10, 2007

ABN 59 078 012 745

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11 July 2007

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STRIKE OIL LIMITED Level 9, Wesfarmers House 40 The Esplanade Perth Western Australia 6000

Phone: 61 8 6464 0400 Facsimile: 61 8 6464 0401 Email: strike@strikeoil.com.au www.strikeoil.com.au

Australian Stock Exchange Ltd Via Electronic Lodgement

OPERATIONS UPDATE

Strike Oil announces the following update on activities in the USA.

Gulf Coast, Texas

Rayburn Prospect, Duncan 1 well, Wharton County

(Strike Oil: 22.8% working interest. Operator: Cypress E&P Corporation)

• Duncan 1 successfully drilled to Total Depth

• Middle Wilcox zone to be production tested

• Decision to test Lower Wilcox zones to be made after wireline logging

The Duncan 1 well has been successfully drilled to test the Rayburn Prospect in Wharton County, Texas.

At the time of reporting (10 July 2007, Texas time) drilling had been completed at a total depth of 16,030 feet (4,886 metres). Current activity was preparing to run wireline logs in the open 6 ½ inch hole drilled in the Lower Wilcox section, to evaluate a number of intervals of interest with elevated gas readings.

Plans are underway to production test the previously reported, wireline log indicated, gas pay within the Middle Wilcox section which is already secured behind casing.

A decision to test any of the zones of interest in the Lower Wilcox section, below the existing casing, will be made once wireline logs have been evaluated.

Commenting on the results, Strike Oil’s Managing Director, Simon Ashton said:

“Confirmation of a discovery at Duncan 1 by testing, will give Strike Oil a second producing asset and a fifty percent exploration success rate (2 out of 4) in its deep Wilcox, Texas Gulf Coast drilling programme, an exciting result given the portfolio of deep Wilcox prospects being lined up for future drilling .”

Colorado

Florence Project, Fremont County

(Strike Oil: 39% working interest. Operator: Comet Ridge USA Inc.)

Strike Oil has been advised by the operator that acquisition of the Florence 3D seismic survey is continuing. The 3D survey is being acquired to identify infill drilling locations on the Florence oil field.

Strike Oil will make weekly Operations reports each Wednesday, unless otherwise warranted, while operations are in progress.

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