Strata-X Energy Recommences Production and Seeking Opportunities
DENVER, COLORADO USA, BRISBANE, QUEENSLAND AUSTRALIA and VANCOUVER, BRITISH COLUMBIA CANADA - June 20, 2016 (Pacific Time - Canada) (TSX-V:SXE) (ASX:SXA)
The directors and management of Strata-X Energy Ltd. (“Strata-X” or the “Company”) (TSX-V:SXE) (ASX:SXA) are pleased to announce an update to the Company’s game plan as outlined in our March 2016 news release:
Illinois Basin Wells Restarted
As forecast in the Company’s March 2016 news release, the Burkett 5-34 well was recently restarted following some surface upgrades after being shut in earlier this year. The well has been slowly drawing down and is producing 19 bbls of oil per day and approximately 650 bbls of water. It is anticipated that the oil rate will continue to rise as the reservoir pressure is slowly drawn down.
Opportunities in the United States
In our Denver office, Strata-X CEO Tim Hoops and his core team have been assessing oil production purchases that offer substantial upside potential. The Company has had discussions with sellers of production but the right deal has not yet been sourced. The Company is also looking to secure hybrid financing to fund any acquisitions.
The Illinois Basin is an oil prone basin which has yet to see a renaissance in new activity with modern technology as other similar oil basins have experienced. We believe Illinois has a bright future ahead of it once new technologies are applied to this oil rich area.
The Company has an extensive data base of well data that covers much of a three county area where historical production has exceeded 1.5 billion barrels of oil. Detailed log analysis indicates that substantial oil remains in place over much of the area. A program is being put into place to evaluate these targets.
Opportunities in Australia
"Wellpro Services, is a Queensland based, well service company, that I co-own, has designed and built specialized, small footprint, well services equipment and methods that for certain applications can result in superior and improved petroleum production", stated Mr. Prefontaine. "Further, Tim Hoops is keeping abreast of the latest production efficiencies being developed in the USA to improve margins which Wellpro can apply in Australia. There are projects in Australia that we believe can be improved with the application of new technology and the plan is for Wellpro and Strata-X to work together to the advantage of Strata-X shareholders. I have approached and will continue to approach companies with projects with substantial upside that can benefit from the application of this new technology with the goal of having Strata-X take a material equity stake in the projects through farm-in or alternative arrangements”.
Although oil markets remain somewhat unsettled, industry fundamentals appear to be taking hold with the oil price rising to a higher and more stable level. The rig count in the USA continues to drop and excess supply is slowly being reduced. Demand also continues to grow but is still significantly dependent on a return to robust economic growth in Europe and SE Asia. Oil prices in the high $40s are certainly better than where we were earlier this year. Our expectation is that it will take at least a few more months for the price of oil to reach and then firmly hold the $50 to $60 per barrel range.
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 California, Illinois and Western Australia. Strata-X has 176,325,585 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)|
This announcement was made in Canada for the TSX.V and in Australia for the ASX.