Company chairman Jeff Schneider said Strike Oil had experienced extremely strong demand due to its successful exploration record, including the discovery and sale of the Casino Gas Field.

In 2002 Strike Oil (and partner Santos) discovered the Casino Gas Field in the Otway Basin off the coast of Victoria. The field, which has been estimated to contain gas reserves in excess of 250PJ, was sold by Strike Oil to AWE/Mitsui in 2003/04 for $23.5 million.

“Investors have responded to the company’s strategic acreage positions that have been accumulated in the Carnarvon and Cooper basins, two of Australia’s most prolific oil and gas producing basins,” Schneider said.

“The company’s drilling program is well advanced with government approvals for the first well Altostratus-1 and arrangements to take over the drilling operation currently being finalised. Drilling is due to commence in September/October 2004.”

Strike also credited the strong oil price environment for giving investors confidence in the prospects for the sector as a whole.

In addition to its oil and gas prospects Strike Oil has assembled coal bed methane (CBM) assets under the Comet Ridge subsidiary, which has recently achieved encouraging results from its drilling operations in eastern Australia. Strike retains an approximate 10% shareholding in this company.