Strike Oil (STX) has made a gas discovery at its Rayburn project, in Texas USA which has been designated Cypress Eagle Field.
The oil and gas explorer said its Duncan 1 well, stabilised flow rates of 10.1 million cubic feet of gas per day and 260 barrels of light gravity condensate from the gas.
"Gross revenues from this well at the above rates equates to around $100,000 per day. This result coupled with production from the Mesquite Project and further wells on Rayburn suggest that net revenues to Strike Oil could be of the order of $2 million per month by mid 2008," the company said.
The company said Duncan 2 and Gilbert-Freeman 1 production facilities and flow lines being installed to allow production testing this quarter, as pipelines are completed.
Strike Oil said a revenue of $2 million per month could be expected by mid 2008.
The stabilised gas flow from the Duncan 1 well coupled with the drilling results from the other wells is very encouraging," managing director Simon Ashton said.
Shares in STX ended 1 cent up at 28 cents.
