Kuhlig #1 Lingle 8-Mile Step-out Well Surpasses Expectations
DENVER, COLORADO USA, BRISBANE, QUEENSLAND AUSTRALIA and VANCOUVER, BRITISH COLUMBIA CANADA - September 21, 2015 (Pacific Time - Canada) (TSX-V:SXE) (ASX:SXA)
- The 8-mile step-out vertical pilot well encountered approximately 16 feet of Lingle formation reservoir as anticipated.
- Reservoir pressure was 2 times the reservoir pressure of the initial Burkett 5-34 well where the 1800 foot lateral test well reached over 300 BOPD.
- A drill stem test (DST) recovered oil and gas with third party analysis similar to the DST analysis of the Burkett 5-34 vertical pilot hole.
- Kuhlig #1 site confirmed as candidate for future horizontal well.
The Company reports that the Kuhlig #1 well has reached a total depth of 4,850 feet and the logging and drill stem testing (DST) program has been completed.1
The well encountered approximately 16 feet of reservoir consistent with the mapping and a historic well located approximately 4,000 feet away. A reservoir pressure of 2,100 psi was indicated during a drill stem test of the targeted formation.1 This pressure is double that of the initial pressure in the Burkett 5-34 lateral well which reached over 300 BOPD. As expected, small amounts of oil and gas were recovered during the drill stem test (“DST”) of the Kuhlig #1 well which is interpreted as a tight carbonate Lingle reservoir.1
The transient pressure analysis of the DST by a third party expert indicates an oil reservoir with a solution gas drive. This analysis is consistent with DST analysis on the Burkett 5-34 vertical pilot hole. The analysis does indicate that the reservoir is tighter at the Kuhlig #1 location compared with the Burkett 5-34 well. The DST expert has indicated that this location would be a good candidate for a fracture stimulated horizontal well in the Lingle.
In summary, the following was achieved in this well:
- The reservoir pressure was double that of our initial test well at Burkett 5-34 lateral.
- The 16 feet of reservoir is the same thickness as the Lingle reservoir in a historic well located about 4000 feet away. The trajectory of the planned 4000 foot lateral well is between these two wells.
- The Kuhlig #1 proved oil in an 8 mile step-out. The recovery of oil cut mud on the DST was similar to DST results in the Burkett-5-34 vertical pilot hole.
Tim Hoops, the Company’s President, stated, “The Kuhlig #1 test well has certainly advanced our understanding of the Lingle play. Strata-X's preliminary assessment of the results from this pilot well is that a multistage 4000 foot lateral well through the Lingle formation over a trajectory between the two vertical wells should have 16 feet of reservoir and perform much better than our first Lingle lateral test at Burkett 5-34 eight miles away. The expected improvement is due primarily to the thicker and much higher pressured Lingle reservoir over a longer length of lateral.”
The Kuhlig #1 well is being completed as a future water disposal well for the multistage stimulated lateral well planned for in early 2016. This lateral well will incorporate a superior completion design to that of the Burkett 5-34 and will use rotary steering designed to reduce the drilling costs.
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 166,895,227 common shares outstanding and trades under the symbol “SXE” on the TSX-V and “SXA” on the ASX.
|Tim Hoops (USA)||or||Colin Christensen (Canada)|
|+1 855-463-2400||+1 403-483-8363|
(1) Results are from the Kuhlig #1 well located in Clay County, Illinois, USA in section 6 of 3N 6E where the Company has an 100% working interest in the well. The targeted, cored and DST tested Lingle formation is a dolomitic limestone at a depth of approximately 4,600ft from the surface. No hydrocarbons were sampled in the core, recoveries of the drill stem test which occurred of 6.3 hours was 50ft of 5% oil, 8% water and 87% drilling fluid (0.428 barrels total liquid volume) along with 80ft of gas in the pipe (1.122 barrels total gas volume).