Strata-X Finalizes Purchase of Unconventional Oil Project;
Amends Private Placement
Golden, Colorado, and Edmonton, Alberta. September 28, 2012 -The directors and management of Strata-X Ltd ("Strata-X" or the "Company") (SXE.V) are pleased to provide the following updates.
Completion of the Maverick Project Acquisition:
Further to the Company’s news release dated August 27, 2012, Strata-X is pleased to announce the closing of a purchase and sale agreement (“Transaction”) for the purchase of exploration rights on the Maverick Oil Project which will target the Eagle Ford Shale formation in South Texas (USA). The Maverick Project is a new high potential oil development project for Strata-X and consists of up to a 75% working interest in approximately 21,000 gross and 11,800 net acres in Maverick County, Texas. The latter is located within the Maverick Basin of Texas which, in turn, falls within the published boundaries of the Eagle Ford shale play. Strata-X will be the operator of the properties.
Under the terms of the Transaction, Strata-X purchased a 57.5% working interest in the properties and holds an option to acquire a further 17.5% working interest which is expected to close in the fourth quarter of 2012. Strata-X also acquired a 15% working interest in a 660 acre production unit that was formed by sellers to the Transaction. The Company, however, will not be the operator of this 660 acre unit. The aggregate consideration paid under the Transaction was approximately $1.75 million of which $750,000 was paid through the issuance of 3,000,000 common shares at a deemed price of $0.25 per share. The shares issued pursuant to the Transaction are subject to a hold period expiring on January 27, 2013 and a contractual escrow period ending September 27, 2013. In order to acquire the additional 17.5% working interest in the properties, Strata-X will be required to pay $500,000 plus approximately US$136,500 in reimbursements, bringing the total Transaction value to approximately $2.39 million.
Strata-X Amends Private Placement:
Strata-X also advises that further to its press releases dated August 27, 2012 and August 29, 2012, it has amended the terms of the securities it is offering in its $7 million non-brokered private placement, being unsecured convertible notes (the “Notes”) and units (“Units”), in order to attract a broader range of investors.
Each Unit will be priced at $0.25 and will comprise one common share and one half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant shall entitle the holder to acquire one common share of the Company at a price of $0.50 per share for a period of four years.
The Notes shall have a term of two years. The principal amount of the Notes shall bear interest at an annual rate of 5%, which interest shall be payable semi-annually in arrears. The Notes shall be convertible to Units at a price of $0.25 per Unit. The Notes will automatically convert into Units on the completion of a potential dual listing on the Australian Securities Exchange within the term of the Notes.
The Company may pay finders’ fees to eligible parties and these fees may be in the form of cash or securities.
The proceeds of the private placement will be used for work upon the Company’s existing properties including the Vail property, the completion of the shale oil project acquisition in Texas and for general working capital purposes. The private placement is subject to approval of the TSX Venture Exchange
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, California, Colorado and Western Australia and production and development opportunities in California and Texas. Strata-X has 48,474,005 common shares outstanding and trades under the symbol SXE on the TSX.V
For further information, please contact:
Public documents for Strata-X Ltd. can be found at SEDAR (www.sedar.com).