Projects include an accelerated natural gas drilling program in Gulf Coast, Texas, as well as a new oil project in Colorado.

Strike will undertake a minimum six-well program in the onshore Gulf Coast region, with five of these wells to be drilled by the end of this year.

The company has also recently exercised its option to acquire interests in four previously producing oilfields in the Tow Creek area of the Rocky Mountains, Colorado.

Managing director Simon Ashton said the company had decided to increase its drilling activity in Texas due to the high gas prices, which are currently at more than US$12 per thousand cubic feet.

Operator Cypress has already contracted two drilling rigs and is attempting to secure a third rig to drill these wells. Strike said any discoveries could be developed and gas sales initiated within one or two months.

Strike will also participate in a deep Wilcox Formation exploration well to a depth of 3962 metres on the Mesquite B prospect in Jackson County. It said the prospect had the potential for 15 billion cubic feet. Strike will fund 35% of the well cost, or A$1.5 million, to earn a 26.25% interest, after spudding in October or November.

In addition, the company will fund 13.33% (A$300,000) of the well costs to drill the Tahoe L prospect in Wharton County to a proposed depth of about 2591 metres. Strike will earn a 10% interest in the prospect, which is estimated to have 1 to 3 billion cubic feet of gas potential. The first well is expected to spud before the end of this year.

Elsewhere in Texas, Strike will participate in three shallow gas wells to be drilled next month in Fort Bend and Wharton Counties, with target depths of between 914 metres and 1524 metres. Individual prospect gas potentials are each projected at about 0.5 to 1.0 billion cubic feet. Strike’s share of drilling costs will be about A$60,000 per well.

Following the drilling of the Mesquite Prospect, Strike will participate in the Vallet-1 well to be drilled on the Kangaroo C Prospect in Fort Bend County in the first quarter of 2006. The prospect will test for gas in the Cook Mountain Formation with potential reserves of about 3 to 4 billion cubic feet. Strike will fund 13.33% (A$550,000) to earn a 10% interest in the prospect.

On the other side of the Pacific, Strike is preparing for drilling in Australia’s Carnarvon and Cooper/Eromanga Basins for 2006. The company said it was applying new seismic acquisition and processing technologies in areas where little or no new seismic had been acquired for many years.

To help fund the accelerated program in the USA, Strike recently announced a Share Purchase Plan (SPP), which offered shareholders further shares in the company.