Strata-X Successfully Executes Stimulation of First Horizontal Vail Well
DENVER, COLORADO USA, BRISBANE, QUEENSLAND AUSTRALIA and VANCOUVER, BRITISH COLUMBIA CANADA - May 15, 2014 (Pacific Time - Canada)
- Halliburton has successfully completed the stimulation of the 7 stages of the Burkett 5-34HOR well.
- Currently preparing the Well for production test.
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 successfully executed the completion stimulation of the Vail Oil Project’s horizontal Burkett 5-34HOR well (“Well”). The completion simulation of the Well was carried out by Halliburton and consisted of the stimulation of all the Well’s 6 unstimulated stages. Following the successful completion stimulation, Halliburton was released as the Company prepares for the production testing of the Well in the coming weeks.
The successful completion stimulation of the Well is the result of the Company’s new design for completion following a detailed analysis of a prior completion attempt, the core acquired of the targeted formation, and information obtained in drilling the Well. This completion stimulation was delayed until now, allowing the Company to acquire and close the transaction for the adjacent, approximately 23,000-net-acre Copper Mountain Oil Project under reasonable economic terms from an undisclosed third party.
President and Managing Director Tim Hoops stated: “The completion stimulation of the Burkett well has taken a bit longer than anticipated while we expanded our project portfolio and increased our development emphasis on the Illinois Basin. We are pleased with the completion as we look forward to the production testing of this proof-of-concept well. The prior attempt in our estimation was an aberration and a mechanical issue not associated with geologic conditions. We look forward to the production testing over the coming weeks to determine the effectiveness of this stimulation.”
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 a 4½ 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.
For more information on the Company please review the ‘May 2014 Update on Key USA Projects’ available on the Company’s website at www.strata-x.com
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 139,785,415 common shares outstanding and trades under the symbol “SXE” on the TSX-V and “SXA” on the ASX.
For further information please 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.