Strata-X Updates High Margin, By-passed Pay Program
DENVER, COLORADO USA, BRISBANE, QUEENSLAND AUSTRALIA and VANCOUVER, BRITISH COLUMBIA CANADA - June 10, 2015 (Pacific Time - Canada) (TSX-V:SXE) (ASX:SXA)
- Strata X outlines “By-Passed Oil” program to boost production and at least double Reserves.
- Drilling scheduled to commence July 2015
- Significant upside identified in Lingle formation to be drilled Q1 2016
Strata-X Energy Limited is pleased to announce it has released an updated investor presentation which is available on its website at www.strata-x.com. The Company is focusing its efforts on developing the “by-passed pay” prospects in its Illinois Basin portfolio. A by-passed pay well is one that was drilled previously that has certain drilling and electrical log attributes that indicate commercial oil is present. By-passed pay prospects are generally low risk, high margin opportunities for the Company to drill at very low finding costs. Most of these wells were drilled 50 years or more ago when oil prices were less than $2/bbl with small profit margins. Using rigorous mapping techniques the Company has identified at least 12 leads and prospects it feels are by-passed pay opportunities at depths less than 4,000 feet.
Blue Spruce – By-Passed Pay discovery1
Earlier this year the Company successfully drilled and completed the Blue Spruce # 1 which resulted in a discovery of approximately 1.2 million barrels of 2P reserves as determined by Chapman Engineering. Plans are to begin development of the Blue Spruce discovery in June 2015 with the drilling of 2 development wells. The Blue Spruce #1 is currently shut in while an injector well is sourced to handle produced water. The Company anticipates drilling will begin in July 2015.
Oak By-Passed Pay Prospect
The Oak prospect is located approximately 7 miles from the Blue Spruce project and is situated on trend with historical production from the Aux Vases formation. Mapping indicates that the Oak prospect could consist of 3 linked pools which in total could contain over 11 million barrels of recoverable oil based on internal estimates using similar evaluation techniques as used on Blue Spruce. The cost to drill and evaluate the Oak prospect is estimated to be approximately $175,000. The Company anticipates drilling will begin in July 2015.
Maple By-Passed Pay Prospect
The Maple Prospect is located approximately 5 miles from the Blue Spruce project and mapping indicates that approximately 1.6 million barrels could be recovered based on internal estimates using similar evaluation techniques as used with the Blue Spruce project. Drilling is anticipated to begin in August of 2015 at a cost of $175,000 to both drill and evaluate.
Lingle Oil Field
Following successful installation of a new disposal facility the Burkett 5-34 well has been placed back on production. Current rates are in line with expectations at 46 BOPD. To date the well has produced 10,250 barrels of oil and generated over $750,000 in revenues. Plans are to drill the pilot well approximately 8 miles away at the Raccoon Creek location. This well will be cored and tested to confirm oil saturations and reservoir pressures prior to a second horizontal test. A horizontal well is currently scheduled in early 2016 should the test from the Raccoon Creek pilot well prove favorable.
Company President, Tim Hoops, stated that “we are excited about the by-passed pay prospects that we are generating at shallow depths of the Illinois Basin. Excellent well control should insure a high success rate. On the Lingle play we are confident that commercial oil exists and believe we can lower our drilling costs significantly with a more effective completion program”.
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, Illinois, California, Texas 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|
(1) Reserve information cited in this News Release for the Blue Spruce Project are P2 reserves, per an independent third party report effective 1 April 2015 (“Report”) from Chapman Petroleum Engineering Ltd. This information originally appeared in a news release by the Company dated 6 April 2015.