The junior said this result, coupled with production from the Mesquite Project and further wells on Rayburn, could see its revenue rise to $2 million per month by mid-2008.

Strike managing director Simon Ashton described the Duncan-1 flow rate as “very encouraging” and reiterated that the drilling program was focused on achieving early cash flow.

“Reserves will be established progressively as the ongoing development drilling program advances in the field,” he said.

“Three and possibly four additional development wells are planned to be drilled before the end of June 2008.”

Elsewhere at Rayburn, Strike said the operator Cypress E&P Corporation was installing production facilities and flowlines at the Duncan-2 and Gilbert Freeman-1 wells so that test gas can be immediately transported to sales.

“These production facilities should be in place during the current quarter,” the company said.

“Once these facilities are in place this will accelerate the time it takes for further planned development wells to be tied in for production.”

Looking ahead, the joint venture, in which Strike holds a 22.8% interest, plans to start drilling the Hlavinka-Duncan-1 well in early February.

Located nearly 3km northeast of Duncan-1, the well will evaluate the new substantial gas zone penetrated in the initial Hlavinka Duncan-1 well at the Cook Mountain Formation and the primary objective Middle Wilcox zones penetrated in Duncan-1, Duncan-2 and Gilbert Freeman-1 wells.