The first well in this program, Sorrel-1 intersected a 1.3 metre gas zone on water at the main target horizon. This thin zone did not justify completing the well for production and the well has been plugged and abandoned and the drilling rig would now move to the Berndt-1 location, according to Strike.

Berndt-1 is targeting Miocene sands at the Guadalupe Prospect, Wharton County. It has a proposed total depth of 1067 metres.

Meanwhile, drilling is continuing at the Lyman Gas Unit-1 well at the Dingo A Prospect, Fort Bend County, Texas. Lyman-1 is targeting the Frio Formation. Yesterday it was drilling ahead at 1255 metres towards a target depth of 1585 metres

The operator of the program is Cypress E&P Corporation and the target depths are in the 950 to 1600 metre range, according to Strike.

“Individual well potentials are half a billion to one billion cubic feet of gas,” the company said.

“Strike Oil will generally be earning a 10% interest in each prospect by funding 13.33% of the dry hole cost of the initial prospect well. Gross well costs will be in the order of US$220,000-350,000 with Strike's financial exposure being the order of US$40,000-$60,000 for each well.

“The company is currently committed to three of the shallow gas wells and the potential exists to expand this program.”