Having recently announced that its fiscal 2008 revenue increased by 24% to $3,800,000, Striker Oil & Gas, Inc. (OTCBB: SOIS) should have investors monitoring the company's progress. Yesterday after the markets closed, the company, an upstream U.S. oil and gas company, issued a press release announcing that it has connected the Catfish Creek #2 to its recently completed pipeline gathering system and it is currently flowing gas and associated condensate to sales prior to stimulating (fraccing) the Pettit formation.
After the stimulation, the expectations are for a significant increase over the current flow rates. The well was completed in the Pettit formation with perforations at 10,435-10,438' and 10,448-10,458'.
Great news for the company! This prospect consists of over 12,800 gross acres with full development of this prospect potentially yielding 30 to 50 wells testing the Pettit and Rodessa formations. Striker has approximately 33% working interest before payout (25% after payout) on this prospect.
"We are happy that we have this well tied into our new gathering system and are very optimistic that the stimulation of this well will meet or exceed our expectations." said Kevan Casey, Chief Executive Officer of Striker.
"Future field plans will be to immediately begin stimulation operations on our Catfish Creek #1 well which has been flowing oil for over the past sixteen months un-stimulated and then follow that with the completion of our recently drilled Catfish Creek #3 well."
Last week the company also reported it has re-established production on its LeJeune #1 well in its North Edna prospect located in Jefferson Davis Parish, Louisiana, at an average daily rate of 71 barrels of oil per day.
According to that release, the North Edna prospect also has an additional well location that has been classified as a Proven Undeveloped Drilling (PUD) location and has been assigned gross reserves of 428,000 barrels split evenly between the PUD and Probable Undeveloped categories by our independent third party reserve engineers. This additional well is forecasted to be drilled in fiscal 2009 to a depth of approximately 9,000 feet to test several zones that have been previously identified in the prospect area.
Striker has a 25.9% net revenue interest in the initial well and an approximate 18% net revenue interest in any subsequent wells on the North Edna prospect.
The company previously reported that its fiscal 2008 revenue increased by 24% to $3,800,000 compared to the same period in 2007. The company missed its previous guidance of $5,000,000 due to a disruption in its production from both Hurricanes Gustav and Ike and also the significant drop in hydrocarbon prices; however, the company has since restored production and does not anticipate any further issues caused by the previous hurricanes.
Investors are urged to carefully monitor the progress of this company!
