Strata-X Energy Ltd. Closes Second Tranch of Placement and Converts Outstanding Loans
DENVER, COLORADO USA, BRISBANE, QUEENSLAND AUSTRALIA and VANCOUVER, BRITISH COLUMBIA CANADA - December 21, 2014 (Pacific Time - Canada)
Strata-X Energy Ltd. (“Strata-X” or the “Company”) (TSX-V:SXE) (ASX:SXA) announces that it has closed a second tranche of the private placement announced on November 12, 2014. The second tranche of the private CDI placement (the “Placement”) consisted of 1,000,000 CDIs (representing 1,000,000 common shares) to raise a further A$170,000 at a price of A$0.17 per CDI. The second tranche of the Placement represents approximately 0.65% of the Company’s issued capital (pre Placement). Quotation of the CDIs on the ASX will occur on December 22, 2014 (Australian time). The total gross proceeds from the recent placement, including this second tranche and recent director loans total approximately A$1.8 million.
The Company intends to use the proceeds from the Placement as follows:
- Drilling, stimulating, if required, and testing up to five low cost vertical wells in the Illinois Basin projects targeting bypassed and/or untested high margin light sweet oil within multiple shallow reservoirs at depths of 750m to 1110m.
- Continued long term testing of the first ‘proof of concept’ well in the Burkett Oil Field to estimate production declines required for economic modeling of the field.
- Flow testing the first ‘proof of concept’ well on the Sleeping Giant Gas Project.
- Lease maintenance and general working capital purposes.
With respect to the second tranche of the Placement, the Company paid finder’s fees in the amount of A$10,200 to certain finders. . The Placement is subject to exchange (TSX-V) acceptance. All of the securities issued pursuant to this offering will have a hold period in Canada expiring on April 20, 2015.
The Company also announces that it has converted amounts outstanding under the convertible loans with certain directors of the Company (as announced on November 2, 2014). The Company has issued 2,777,778 CDIs as repayment of principal at a deemed price of A$0.18 per CDI. The issuance of the CDIs represents approximately 1.8% of the Company’s issued capital (pre conversion). All of the securities issued to directors pursuant to this offering were approved at the Company’s AGM held on December 3, 2014 and will have a hold period in Canada expiring on April 20, 2015.
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 156,584,977 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||Julia Maguire (Australia)
|President||Investor Relations||Investor Relations|
|+1 855-463-2400||+1 403-483-8363||+61 419 815 386|