Gaining Momentum in Illinois Basin
Production testing begins at Burkett 5-34HOR well
DENVER, COLORADO USA, BRISBANE, QUEENSLAND AUSTRALIA and VANCOUVER, BRITISH COLUMBIA CANADA - August 7, 2014 (Pacific Time - Canada)
Strata-X Energy is pushing ahead with its development of the Vail Oil Project’s horizontal Burkett 5-34HOR well as part of its strategy to find and develop high reward opportunities.
- Commenced production testing of our ‘proof-of-concept’ well testing the Lingle Formation;
- Higher than expected total fluid rates, with oil rates steadily increasing with the current rate at approximately 30 barrels oil/day;
- An electric submersible pump was installed at a depth of 3,250’; The pump has a rated capacity of 1,000 barrels per day, it is currently operating at less than full capacity;
- Natural gas is currently being flared and is estimated to be in excess of 100 mcf/day; future plans may include gas sales;
- Permanent production facilities are being sourced.
President and Managing Director Tim Hoops said, “the wellbore stimulation has been outstanding and, as expected, oil rates are steadily growing. We are testing the robustness of the well and will be upgrading our production facilities on the lease. This will enable us to pump more fluid and therefore extract more oil. The additional fluid can be easily and cost effectively managed. I am delighted with the initial results. They support our strategy of creating substantial growth for our shareholders, by finding and developing high reward opportunities that have relatively low entry costs.”
The Burkett 5-34HOR well program is a proof of concept well for the Vail Oil Project. The program is designed to provide the additional production and reservoir performance information required from the reservoir to support the field developmental planning process.
For more information on the Company and its Project’s please visit our 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, Texas, Illinois and Western Australia and production and development opportunities in California. Strata-X has 146,288,969 common shares outstanding and trades under the symbol "SXE" on the TSX-V and "SXA" on the ASX.
The Burkett 5-34 horizontal oil and gas well is located in Clay County, Illinois USA and is comprised of an 80 acre production unit covering approximately 5 exploration leases with Strata-X retaining a 100% working interest in the Well. The targeted formation of the well is the Devonian aged Lingle formation, a carbonate reservoir. The well has recovered oil, natural gas and formation fluid with oil to water ratios ranging from 0% to 8% with natural gas metering. No pressure declines were observed during this limited test nor material declines in oil production. In May 2014 the Burkett 5-34 underwent a nitrogen assisted completion stimulation consisting of 7 stage intervals using an approximate total of 176,000 pounds of proppant. The aforementioned information regarding this or historical production testing on the Burkett 5-34HOR well is not necessary indicative of long-term performance or of ultimate recovery.
For further information please contact:
|Tim Hoops (USA)||or||Colin Christensen (Canada)||or||Julia Maguire (Australia)
|President||Investor Relations||Investor Relations|
|+1 855-463-2400||+1 403-483-8363||+61 419 815 386|