The placement of 22 million shares at 18 cents each will be used to fund the appraisal and development of the Mesquite gas prospect in the Gulf Coast of Texas.

Settlement is expected in the next week, according to Strike.

The company said it expected to drill between 12 and 20 wells in its four key regions across the United States and Australia.

Strike plans to drill between five and 10 wells in the Gulf Coast, Texas, two or three wells in the Rocky Mountains, three or four wells in the Carnarvon Basin, and two or three wells in the Cooper/Eromanga Basin.

Drilling is also planned for the second quarter of 2006 at Strike’s newly acquired Bear River prospect, immediately west of its Tow Creek project in Routt County, Colorado.

Comet Ridge told the ASX it will acquire a 100% interest in 1000 acres of leases, which include the Bear River oil prospect. Strike and Houston-based Ponder Exploration – Comet’s partners in Tow Creek – will acquire a 37.5% and 25% stake in Bear River respectively.

Bear River is a new fractured Niobrara oil prospect defined from ongoing technical analysis. Comet Ridge said the acreage offered the joint venture numerous potential drilling locations, immediately offsetting an existing oil well that has produced more than 470,000 barrels to date.

Last month, Strike Oil exercised an option to increase its working interest from 25% to 37.5% in the Tow Creek Project. Project operator Comet Ridge also increased its interest by 12.5%.

With two to three wells planned for 2006, Strike said additional leasing was also in progress.

Meanwhile in the Gulf Coast, the gas discovery well, Shefcik-1, has been completed for production and is currently awaiting testing, according to Strike.

Nearby on the Mesquite A Prospect, the Webernick-1 well has encountered gas shows in the primary objective interbedded sandstones and mudstones of the Wilcox Formation. The well is currently at a depth of 3462 metres and will continue drilling through the primary objective to a total planned depth of 3719 metres, Strike said. It holds a 26.25% working interest in the project.

In Australia, Strike is planning to drill three to four wells in the Carnarvon Basin, following the completion of major new seismic in nine permits.

The company is also planning two to three wells in the Cooper/Eromanga Basin this year, after farming out two South Australian permits and making progress on its Native Title.