Strata-X Energy Ltd. - Placement Oversubscribed Raising $6.04 Million
DENVER, COLORADO USA, BRISBANE, QUEENSLAND AUSTRALIA and VANCOUVER, BRITISH COLUMBIA CANADA - October 29, 2013 (Pacific Daylight Time - Canada)
Further to the Company’s previous announcement regarding the private placement of CDIs to sophisticated and institutional investors, the Directors and management of Strata-X Energy Ltd. (“Strata-X” or the “Company”) (TSX-V:SXE) (ASX:SXA) are pleased to announce that the Company has received commitments for 15,872,962 CDIs (representing 15,872,962 common shares) to raise A$6.04 million at a price of A$0.38 per CDI (Placement). The Placement represents approximately 13% of the Company’s issued capital.
Proceeds from the placement will be used primarily on appraisal programs on Strata-X’s three key USA projects and for general corporate purposes.
Commenting on the placement, Ron Prefontaine, Chairman of Strata-X stated, “We are delighted with the support shown for the placement, both from our existing shareholders and new international and domestic institutional and retail shareholders who recognize our significant growth potential and likely near term deliverables. The additional funds will allow us to advance exploration and appraisal programs on our three key USA projects. Assuming all goes to plan, we intend to quickly follow up success with aggressive step-out programs to demonstrate the sizable potential of these projects.”
Strata-X’s Managing Director, Tim Hoops, expounded “Over the next three months we plan to carry out appraisal programs on three USA based oil and gas projects where we are the majority interest holder and operator. Commencing in the week of November 18, 2013, we plan to execute our stimulation and testing program of our first horizontal well, Burkett 5-34HOR, located in the highly prospective Illinois Basin. The stimulation program will be over the 550 meter horizontal section which intersected an interpreted light oil zone in a dolomitic reservoir immediately below the primary shale source rock in the Basin. At our Maverick Oil Project located on the Eagle Ford shale trend in West Texas, we have contracted a rig to commence drilling in early December 2013. The Maverick drillng program includes coring an interpreted 180 meter thick vertical oil zone in the Eagle Ford shale and underlying Buda limestone targets to help determine an appropriate completion method for the oil zones. At our Sleeping Giant Gas Project in the Williston Basin in North Dakota, we are finalizing approvals to drill four vertical appraisal wells which are also expected to commence in December 2013.”
More details on Strata-X’s projects can be found on their web site at www.strata-x.com .
The capital raising was jointly led by BBY Limited and Helmsec Global Capital Limited.
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, 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.