Strata-X Ltd. Announces Oil Shows in Vallecitos Project Well San Benito County, California
GOLDEN, COLORADO--(Marketwire - Dec. 1, 2011) - Strata-X Ltd. (Strata-X) (TSX VENTURE:SXE) through its wholly owned subsidiary Strata-X, Inc. has been informed by the Vallecitos Project operator (Patriot Resources, LLC) that the 6-31 RD2 stepout well at Vallecitos field is in a mature producing area, located in San Benito County, California has reached a total depth of 4,115 feet. The oil shows encountered while drilling the primary target, Yokut sand, are consistent with what would be expected of a productive oil reservoir in the area. Strata-X has a 22.5% working interest and a 19% net revenue interest in the well and project.
Following total depth being reached the drill pipe became stuck in the hole due to swelling shales. After freeing the pipe, subsequent attempts to enter the hole failed as the bottom 1,000 feet of the hole, which includes the potential oil zone, became unusable and electric logs, used to estimate the extent of the oil pay, could not be run. The Operator has recommended that the well be sidetracked and new wellbore drilled through the interpreted oil sands so electric logs can be run in advance of casing and production testing. The sidetrack operations will begin within a few days and are expected to take approximately 10 days to complete.
Tim Hoops, Strata-X President, said: "While the loss of the bottom of the hole is unfortunate we are very encouraged with the oil shows in the Yokut target zone and believe much of the geologic aspects of the prospect have been derisked. Our focus now is on completing a successful sidetrack well in the Yokut reservoir."
Strata-X is a Edmonton, Alberta and Golden, Colorado based company and is engaged in the business of oil and gas exploration and development with a variety of exploration opportunities in North Dakota, and production and development opportunities in California and Texas. Strata-X has 42,308,156 common shares outstanding and trades under the symbol SXE on the TSX.V
Public documents for Strata-X Ltd. (formerly known as Ozcapital Ventures Inc.) Can be found at SEDAR (www.sedar.com)