Strata-X Advances Activites in its Three Key USA Projects
DENVER, COLORADO USA, BRISBANE, QUEENSLAND AUSTRALIA and VANCOUVER, BRITISH COLUMBIA CANADA - October 24, 2013 (Pacific Daylight Time - Canada)
- Executes drilling contract for the Maverick Oil Project targeting the Eagle Ford shale.
- Engaged Halliburton for the stimulation of the Burkett 5-34HOR well, Vail Oil Project.
- Permitting 4 wells on the Sleeping Giant Gas Project.
The directors and management of Strata-X Energy Ltd. (“Strata-X” or the “Company”) (TSX-V:SXE) (ASX:SXA) are pleased to provide an update on the 2013 exploration and appraisal programs for the Company’s three key USA projects where Strata-X is the operator and majority interest owner.
Maverick Oil Project, Eagle Ford, South Texas – 10,945 net acres
In June 2013, the Company secured the services of a specialized analysis company, Total Depth Pty Ltd, to conduct proprietary seismic processing and interpretation analysis of the current 3-D seismic data on the Maverick Oil Project. This analysis was designed to assist the Company in geological mapping for the proposed vertical well drilling campaign. To date, Total Depth Pty Ltd has supplied the Company with multiple prospective drilling locations based on its seismic interpretation.
One of the locations supplied by Total Depth Pty Ltd is known as the Cinco Saus Creek #1. This location is currently being permitted and the Company anticipates receiving all required regulatory approvals by late November. With this timing in mind, Strata-X has contracted Unison Drilling, Inc. of Devine, TX to utilize their rig #11 to drill Cinco Saus Creek #1 and expects the rig to be mobilized to the location by the first week of December 2013.
The Cinco Saus Creek #1 is designed and is being permitted as a vertical test of the targeted Eagle Ford formation in the Maverick Basin. In the Company’s assessment, the nature of the hydrocarbons and reservoirs within the Eagle Ford shale formation in and around the Maverick Basin requires a different approach to drilling and completion methods than those currently being utilized in deeper portions of the Eagle Ford trend. As such, Strata-X anticipates coring approximately 600 feet of the targeted Eagle Ford shale and Buda formations. The information gained from the analysis of the core and well logging is expected to assist the Company in designing the most efficient completion method for the well.
Vail Oil Project, Illinois Basin – 100% of 49,200 net acres
In July 2013, Strata-X spudded the Burkett 5-34HOR well, the first Company test well of the Vail Oil Project. It was designed to be drilled in two stages. First, the Company drilled a vertical hole to the top of the target formation and then cored approximately 60 feet of the formation. The vertical portion of the well reached a total depth of 4,730 feet. Oil and gas shows were encountered in the targeted Devonian Lingle formation and a drill stem test of the target recovered gas and oil cut mud. Then the well was drilled to a total depth of 6,762 feet with approximately 1,824 feet of lateral drilled. A 7-stage sliding sleeve completion system on 4 ½ inch liner was installed over the lateral portion of the well. While drilling the lateral portion of the well, oil and gas shows were encountered and live oil was visible in the drilling mud. Strata-X released the drilling rig at the beginning of September 2013.
After a detailed examination of data gathered from the core of the targeted Devonian Lingle formation along with data collected during the drilling of the well, the Company contracted Halliburton to conduct a completion stimulation of the well. It is anticipated that this work will begin the week of November 18, 2013. In addition to the Burkett 5-34HOR well, Strata-X has begun the permitting process for two new horizontal well locations on the Vail Oil Project.
Please refer to the Vail Project Primer found on the Company’s website (www.strata-x.com) for more information about this project.
Sleeping Giant Gas Project, Williston Basin, North Dakota – 100% of 145,000 net acres
The Sleeping Giant project is located in North Dakota and is targeting natural gas resources trapped in the Niobrara Formation, a prolific producer of hydrocarbons throughout the Rocky Mountain Region. In the past several months the Company has acquired additional strategic leases prior to beginning evaluation drilling of up to four pilot wells on this project.
In that regard, the Company has begun the process of securing permits for up to four drilling locations from the North Dakota Industrial Commission in anticipation of commencing its drilling program in the coming months. The Company has also begun negotiating a drilling contract for up to four exploratory wells with a local drilling company and anticipates finalizing the contract by early November.
Other Strata-X Developments
As previously announced, the Company will be presenting at the ASX Spotlight Investor Conference to be held in Singapore & Hong Kong. Timothy Hoops, President and Managing Director of Strata-X will give a presentation on the Company in Singapore on October 29 at 4:20 P.M. and in Hong Kong on October 31 at 9:25 P.M (local time).
The Company is also pleased to report that it has filed its interim Consolidated Financial Statements, MD&A and ASX Quarterly Activities Report for the quarter ended September 30, 2013. Copies of the filed documents are available on SEDAR, and the ASX and Strata-X websites.
Strata-X is a Denver, Colorado (USA) 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, Texas, Illinois and Western Australia and production and development opportunities in California. Strata-X has 123,912,453 common shares outstanding and trades under the symbol “SXE” on the TSX-V and “SXA” on the ASX.
For further information contact:
|Tim Hoops (USA)||or||Colin Christensen (Canada)||or||Duncan Cornish (Australia)|
|President||Investor Relations||Corporate Secretary|
|+1 855-463-2400||+1 403-483-8363||+61 7 3212-6299|
This announcement was made in Canada for the TSX.V and in Australia for the ASX.