stx Strike Oil

[I.T.Ancient]

I can't believe this is still trading below 30c. We already know that HD1 is going to add something to the numbers. Might have to break my self imposed 'don't buy before August' rule.

[JBmurc]

STX Ann looks great 24m+ nett profit for 08 -P/E-3ish??????(is only the start to many more solid earnings for this well run company) to bad the market doesn't seem to care still come july-Aug 08 I believe there be some more strenght back into the marketplace once all the investors get over there current fearfull outlook and see the skys not falling .

[JBmurc]

-great post of HC----overall outlook for 2008



* HD1R may will give us a first indication of the size of Cypress Eagle Field and it could be massive

* Test results from D2 and particularly GF1 (additional pay zones from the upper wilcox) could surprise

* expansion of the develpment and exploration (i. e. Rodeo) drilling at the Gulf Coast - additional licencing of new prospects and acres

* we will have the spud of the 10 mmbbl phi prospect later in this quarter (and perhaps a second well back-to-back)

* we will have the start of the Florence project with three initial wells later in this quarter (if the Florence project is successful it could turn to "the" cash-engine for both STX and COI)

* short term I expect a farm down of the Rockies projects and a free carry for some of their activities

* therfore a resumption of the prospective Tow Creek / Bear River projects is likely

* perhaps they will farmin to the Grays Harbor projects

* ... and they have to find a (shallow water) Rig solution for the Rivoli project by the end of the year and this should bring some new perspectives for the carnavon basin permits



-----------------------------

-I see in my lastest Oil jnr weekly-JC states - Baniyas 60mbbls-is planned to be drilled this year for this year.
-Very short term I could see STX having the large Rayburn project flowing over 40mmcf pd of GAS and over 1000bbls con oil per day with futher development to come
-they also have a 15% interest with BPT on a couple drill in the cooper basin
-there orginal 3 drill find at- Mesquite -also had futher development potential(I guess with STX having so many great prospecs ongoing its going be looked at in 09)

-Like I've said before STX has a $1 SP in its sights - it;s only a matter of market sentiment to base SP on its fundamentals once again hopefully sooner 08 rather than later 09

[JBmurc]

-Post off HC-Great overview of what STX's has going on atm certainly think STX(like PSA)are in the right market(US GAS energy market)If the US is DOOMED I'm sure people would still like to keep warm

Just to kill time of wating ...
a short view on STX Agenda for the next four months:

* HD-R1 (seems clear for everbody):

- The Cook Mountain Formation could be a new discovery; they reported "substantial gas shows" at HD1 and SA announced that they will run wireline logs before they drill ahead to primary objective "Middle Wilcox Fmt."Results are pending, perhaps on Wednsday

- If HD-R1 has results comparable to D1, D2St1 and GF1 at the "Middle Wilcox" then the Cypress Eagle Field will be a "Giant-Discovery" in order of multiple of hunderts of bcf (eventually up to the TCF area if the deeper "Lower Wilcox Fmt." proved to be commercial)

* Duncan #3 will be the fifth Rayburn well

- In the meantime drilling of D3 is "approved" and spud could follow immediately after completion of HD-R1. D3 will extend the field development to the south.

* More Rayburn development wells are announced

- Depending on success we could have up to 10 to 14 wells at the end of the year.

- Wells in adjacent Wilcox fields have the order of 5 to 10 bcf per well; therefore we could have 50 to 100 wells at the Rayburn prospect if we have a dicovery in the order of 500 bcf.�The current Duncan #1 production rates eaquates to cross revenues about 3 mio. A$ per month.

* Confirmation of of flowrates of D2St1, GF1, HD-R1, and perhaps D3 should be possible in the next 4 months



* Cooper-Basin (ATP-633P) (STX 15%)

- Two oil - wells in the first halfyear with BPT.

- Prospective Resource at "Phi" is 5-10 mmbbl;�
at "Phi South" 3-5 mmbl.

- 1,5 mmbbl (based on a 10 mmbbl discovery) would have a market value for STX of around 160 mio. A$ - which would be a two fold of the current MC.


* Florence (STX 39%)

- The program will start in March/April - currently there are three wells in a "drilling permit application" status(Golden 33-20, Apache 33-20B, Rainbow 33-20)

- All of this wells are targeting the "Pierre Formation" with a oil potential of 200,000 bbl each (Golden will also testing the Niobrara Fmt.)

- A well in a adjacent lease (Javernick Oil's "Royal Gorge #1") is flowing at a rate of 100 bbpd from der Pierre Fmt. since Feb 2005.

- The Florence wells will have up to 5 additional target zones.

- COI has plannend a 10 well program at Florence in the first year but they have up to 50 more drilling location afterwards. Each well takes only 10 days for drilling and completion.

- From the December - CoperateFile - Interview with Comet Ridge's MD Andy Lydyard:

Q: "[...] why do you belive that your Florence project can add significant value for shareholders when the exploration targets are generally only around the 200,000 barrel mark?

MD Andy Lydyard:
"This question has been rised a couple of times after our recent AGM. The exploration target per well is around 200,000 barrels. At this point in time we are permitting 10 wells, but have an inventory of over 50 more locations that could be drilled if the inital round of wells proves successful. By the way, the 200,000 barrels is worth $17 million based on current oil prices. Also the 200,000 barrels only adresses potential oil in the Pierre Formation. We have five other objectives at Florence including the Niobrara and Sharon Springs (fractured shales) and Codell, Dakota and Lytle sandstones. These targets are very lightly drilled and offer significant upside potential. If successful, these are highly economic wells offering significant cash flow to the company.

Beyond the Florence project specifically, the 3D seismic we acquired earlier this year has provided us with unique insight into the controls on production in the old Florence field. This has lead to Comet Ridge's technical team developing a new geological concept that is potentially applicable up and down the Rockies. Florence, as with all of the plays we pursue, is part of a bigger picture, namely developing a tool set that provides the Company with a competitive advantage over a large area."

- STX holds around 9% of Comet Ridge.


* Tow Creek (STX 37,5%) / Bear River (STX 33,75%)

- COI is actively seeking a partner to drill two wells (i.a. a second sidetrack for CVU 31-4) - a "farmdown" is probably in short term; perhaps drilling starts at the end of Q2.

- In particular the "Coal View 31-4" well at Tow Creek was very encouraging - COI reported:
"stong oil- and gas shows recorded over fractured intervalls within the Niobrara in both the original well bore and sidetrack" and
"significant oil and gas shows in fractures in the target Niobrara Fmt. These shows warrant another attempt to drill and complete the well".


... all these activities in the first halfyear 2008 ...

I think STX needs more PR - 'hope that Simon Ashton will meet the press and the brokers soon ...

[JBmurc]

well my two biggest ASX holdings STX,PSA both in the US both have a massive 08 install be it through there successive drilling program STX or there large GAS production yet sadly they are both getting sold down like they don't have any cashflow.

-STX have D1 success 10mmcfpd, D2 and GF1 with a very high chance of success and HD-R1 on her way into Cook mountain and mid/lower wilcox also looking probable as yet another success -so in all the RAYBURN area could well be flowing 40mmcf per day and have a reserve of over 400bcf (value to STX $1+)

-STX sp 22.5c downside 18c upside $1

Am currently looking at increasing my 227,000 stx holding alot today this will mean I'll only hold PSA,STX,PENO on the asx NZO,PPP nzx

-What's your guys views -mine sellout of more specie share holdings focus on core undervalued cashflow&development rich core holdings

[brettdale]

STX is probably my biggest hope at the moment, I got burned so much on RAU, that i was scared for a while of investing in anything.

But I love the look of STX.

[JBmurc]

STX is probably my biggest hope at the moment, I got burned so much on RAU, that i was scared for a while of investing in anything.

But I love the look of STX.

I'm sure alot of sellers do aswell but as they will have many outside pressures to sell(higher morg payments,Margin calls,stoplosses )
It is now time to be GREEDY while many are fearful

[JBmurc]

2m revenue per month by june 08 looking very likely for STX going forward 4m-6m per month only time will tell, personal glad to keep a core portfilo holding in STX -50c min this yr

USA AND AUSTRALIAN PROJECTS
OPERATIONAL UPDATE
Strike Oil is pleased to provide the following report on its Gulf Coast Rayburn drilling and testing programme and its Cooper-Eromanga Basin drilling programme.
RAYBURN
• Duncan 3 preparing to drill ahead at 7,910 ft ( 2,411 metres)
• Duncan 2 ST production flow testing proceeding in line with expectations
• Gilbert Freeman 1 test underway
COOPER - EROMANGA BASIN
• Currumbin 1 drilling ahead at 1,473 metres

[JBmurc]

USA AND AUSTRALIAN PROJECTS
OPERATIONS UPDATE
Strike Oil is pleased to provide the following report on its Gulf Coast Rayburn drilling and testing programme and its Cooper-Eromanga Basin drilling programme.
RAYBURN
• Duncan 1 continues to flow at 10 MMCFD and 260 BCPD
• Duncan 2 ST and Gilbert-Freeman 1 testing underway
• Duncan 3 preparing to drill ahead at 9,568 ft ( 2,916 metres)
• Hlavinka Duncan 1 test to begin shortly
COOPER - EROMANGA BASIN
• Coolangatta 1 well spudded this week
RAYBURN PROJECT – WHARTON COUNTY
(Strike Oil 22.8% Working Interest; Operator Cypress E&P Corporation)
Duncan 1
The Duncan 1 continued throughout the week to produce at approximately 10 million cubic feet of gas per day and 260 barrels of oil-condensate per day.
Duncan 2 ST, Gilbert-Freeman 1 and Hlavinka-Duncan 1R
Testing is currently underway on the Duncan 2 ST and Gilbert-Freeman 1 wells. Testing of these two wells is proceeding as expected and will continue over the next 30 to 40 days before stabilized flows can be reported.
Testing of the Hlavinka-Duncan 1R well is expected to begin shortly.
Strike Oil Limited
ABN 59 078 012 745
Duncan 3
A 7 5/8 inch liner has been set at 9,568 feet (2,916 metres). Current operation is preparing to drill ahead in 6 1/2 inch hole.
The well is located approximately midway between the Duncan 1 and Duncan 2 wells. It is targeting the same Middle Wilcox pay sand encountered in Duncan 1 and 2 wells and Gilbert Freeman 1 well. Proposed total depth is 12,200 feet (3,719 metres).
ATP 633 P - COOPER-EROMANGA BASIN, QUEENSLAND
(Strike Oil 15.00% Working Interest; Operator Beach Petroleum)
Coolangatta 1
The operator of ATP633P, Beach Petroleum has advised the rig has been mobilised to the location of the Coolangatta 1 exploration well. This well spudded on 15 April 2008 at 12:30pm and is currently drilling ahead in the surface hole.
The Coolangatta 1 well will test the oil potential of the Jurassic interval within a simple anticlinal closure approximately 18km northeast of the Munro Field, 12.5 km southeast of Wills East-1, 16.5 km southwest of Phi North-1 and 14 km south of the Tickalara Field. The prospect is defined by the 1 x 1 km 2007 Gukithi 2D seismic survey.
The objectives are the Murta Formation, Namur Sandstone and Hutton Sandstone which has been proven to be oil prone within the area. The primary objective, the Namur Sandstone, has a probabilistic mean resource of 0.65 million barrels of oil with a deterministic upside of 5.7 million barrels of oil. The well is programmed to drill to 1,387 metres.
Currumbin 1
The Operator, Beach Petroleum, has advised the Currumbin 1 well has been plugged and abandoned.

[brettdale]

I read this as Good news, a lot of testing ahead though, but this company is very good in keeping investors informed.