Strata-X Announces Prospectus Offering with the Australian Securities and Investment Commission

GOLDEN, COLORADO and VANCOUVER, BRITISH COLUMBIA. Dec. 21, 2012 - The directors and management of Strata-X Energy Ltd ("Strata-X" or the "Company") (SXE.V) are pleased to announce that, further to the Company’s press release dated November 5, 2012,  the Company has lodged a Prospectus with the Australian Securities and Investment Commission ("ASIC") for a minimum A$10 million and maximum A$20 million Australian Initial Public Offering ("IPO"), ahead of a planned co-listing of its shares on the Australian Securities Exchange ("ASX"), targeted for February 2013. The Company’s anticipated trading symbol on the ASX will be SXA. The Company’s existing shares will continue to be traded on the TSX Venture Exchange under the symbol SXE.

Proceeds from the IPO will be used to fund a drilling campaign on the Company’s oil and gas projects in the Eagle Ford Maverick Oil Project in Texas, the Vail Oil Project in Illinois and the Sleeping Giant Project in North Dakota.  Additionally, a portion of the raised funds will be used to acquire further high reward potential opportunities, pay the expenses of the IPO and provide ongoing working capital for general and administration expenses. Specifically, exploration funds have been allocated to:

  • Explore the Maverick Oil Project targeting the Eagle Ford formation in the Maverick Basin, Texas, USA with one vertical well with multi-stage fracture stimulation and depending on the success of the IPO, one horizontal well to be completed with multi-stage fracture stimulation. The Company currently has 10,945 net acres under lease for the Maverick Oil Project and is the operator of the project.
  • Explore the Vail Oil Project in the Illinois Basin with one horizontal well which will be completed with a multi-stage fracture stimulation. The Company currently has 45,400 net acres under lease for the Vail Oil Project and is the operator of the project.
  • Explore the Sleeping Giant Project in the Williston Basin, North Dakota, USA with up to four vertical wells which will be fracture stimulated. The Company has 175,000 net acres under lease/option for the Sleeping Giant Project and is the operator of the project.

The key Australian dates of the Prospectus are:

  • December 21, 2012 – Date of the Prospectus
  • January 7, 2013 – Offering Opening Date
  • February 8, 2013 – Offer Closing Date
  • February 14, 2013 – Allotment of New Shares
  • February 15, 2013 - Dispatch of Holding Statements
  • February 20, 2013 – Anticipated Date of Trading on ASX

Bizzell Capital Partners Limited are Corporate Advisors (the “Advisors”) to the IPO and BBY Limited and Helmsec Global Capital Ltd. are the joint lead managers (the “Agents”) to the IPO, which will consist of a minimum of 33,333,333 CHESS Depository Interests ("CDIs") and up to 66,666,667 CDIs to be issued at AUS$0.30 per CDI (approximately C$0.31). Subject to regulatory approval, each CDI will be equivalent to and exchangeable for one common share in the capital of Strata-X. Securities issued under the Australian prospectus will be subject to a four-month plus one day restriction from resale into Canada or to Canadian investors, and cannot be resold into Canada during such period, unless an exemption is available from the applicable prospectus requirements in Canada. The CDIs, however will be tradeable on the ASX upon listing.

The Agents will receive a commission of five percent of the gross proceeds raised under the prospectus offering as well as up to 2.5 million broker warrants exercisable at a price of A$0.36 per CDI for a period of three years and a management fee of one percent of the gross proceeds raised under the prospectus offering. The Advisors will receive a corporate advisory fee of A$10,000 per month until completion of the IPO and a success fee of 0.75% of the gross proceeds raised under the prospectus offering.

The prospectus is intended for use only in connection with the offering of the Company's securities in Australia and is not to be construed as an offering in Canada or any other jurisdiction. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction where such offer, solicitation or sale would be unlawful.

The Australian IPO is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the ASX and the TSX Venture Exchange. Closing of the Australian IPO is expected to occur in mid February 2012.

Further to the Company’s press release dated July 16th, 2012 the Company intends to convert the Convertible Debentures into Debenture Units at a price of $0.25 per Unit. Each Unit will be made up of one common share and ½ of a common share purchase warrant. As a result the Company will convert $3,230,000 Convertible Debentures into 12,920,000 Debenture Units and each unit consists of one share at a deemed price of $0.25 and ½ purchase warrant. The Convertible Debenture bears interest at an annual rate of 5% payable semi-annually in arrears and the interest will be converted into shares of the Corporation.

About Strata-X Energy Ltd
Strata-X Energy Ltd and its wholly owned subsidiaries, Strata-X, Inc. and Strata-X Australia Pty Ltd, is an independent oil and gas exploration company listed on the TSX-V. Based in British Columbia, Canada, Strata-X has a portfolio of petroleum projects which provides a diversified collection of potential high growth opportunities for Shareholders. The Company’s strategy and goals are to discover and develop oil and gas opportunities with relatively low entry costs, a meaningful acreage position and a large working interest which combine to create the potential for substantial growth for Shareholders.

Strata-X Energy currently owns or has rights to approximately 6,779km2 (1,675,160 net acres) in petroleum assets located in the USA and Australia. The company is primarily targeting near term growth  in conventional and unconventional oil resources in the USA. Longer term growth is offered in the Company’s successful strategic application for 5,820 km2 (1,438,120 acres) in the Canning Basin, Western Australia. Strata-X Energy owns and operates 100% of the majority of its four key projects which provides the Company with flexibility in terms of timing and approach to exploration and any subsequent development of delineated oil and gas properties. The Company also has interests in several other petroleum projects in the USA.

Strata-X is engaged in the business of oil and gas exploration and development with a variety of exploration opportunities in Texas, North Dakota, California, Colorado, Illinois and Western Australia and production and development opportunities in California and Texas.

For Further information contact:
Tim Hoops
President
720-515-8793
info@strata-X.com

or

Colin Christensen
Investor Relations
403-283-7697

Public documents for Strata-X Ltd. can be found at SEDAR (www.sedar.com)

This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. The use of any of the words "anticipate", "continue", "estimate", "expect", 'may", "will", "project", "should", 'believe", and similar expressions are intended to identify forward-looking statements. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected and the forward-looking statements included in this news release should not be unduly relied upon. See "Risks and Uncertainties" in the Company's Filing Statement dated August 30, 2011 available on SEDAR at www.sedar.com These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.