Strata-X Serowe CSG Resource Upgrade Funding

Company Closes CDI Private Placement

DENVER, COLORADO USA, BRISBANE, QUEENSLAND AUSTRALIA and VANCOUVER, BRITISH COLUMBIA CANADA - 25 February 2019 (Pacific Time - Canada) (TSX-V:SXE) (ASX:SXA)

The directors of Strata-X Energy Ltd. (“Strata-X” or the “Company”) (TSX-V:SXE) (ASX:SXA) are pleased to announce that the Company has closed a non-brokered private placement (“Placement”) to sophisticated and institutional investors in Australia.  The Company raised gross proceeds of A$500,000 through the issuance of 8,333,334 Units at a price of A$0.06 per Unit. Each Unit consists of one Chess Depository Unit (“CDI”) and one half of one share purchase unlisted warrant. Each warrant is exercisable into one CDI at an exercise price of A$0.07 up until February 28, 2021.

The Company plans to use the proceeds to:Integrate the results of the current drilling program into seeking a resource upgrade.

  1. Quantify the conditional reserves potential of a successful pilot and appraisal drilling program in  Strata-X’s 100% owned PL 19C.
  2. Integrate the results from the current drilling program to design a CSG pilot using inexpensive vertical well methods. The pilot design should demonstrate the optimal gas flow potential from the bright interbedded Serowe Coal Seams within the high graded area.
  3. Negotiate and finalize contracts with proven service companies to execute the program.
  4. Placement fees and working capital 

The Company has paid finder’s fees in the amount of A$7,500. 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 June 26, 2019.

About Strata-X

Strata-X is seeking to commercialize Coal Seam Gas (CSG) in Botswana and petroleum in the USA. Strata-X has 89,538,318 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)    
President    
+1 855-463-2400    
info@strata-x.com    

 

This announcement was made in Canada for the TSX.V and in Australia for the ASX.

Public documents for Strata-X Energy Ltd. can be found at SEDAR (Canada) (www.sedar.com) and ASX.com.au (Australia).

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, which relate to future events or future performance, including but not limited to, the completion and size of the Placement, receipt of regulatory approvals and timing thereof, the Corporation’s business strategies and plans for the use of such Placement proceeds, capital expenditure programs and estimates relating to timing and costs, and reflect management's current expectations and assumptions, including, but not limited to the timing and receipt of necessary regulatory approvals and third party approvals and completion of the Placement and stability of general economic and financial market conditions. The use of any of the words "anticipate", "continue", "estimate", "expect", 'may", "will", "project", "should", 'believe", and similar expressions is intended to identify forward-looking statements. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company. Readers are cautioned that these forward-looking statements are neither promises nor guarantees, and are subject to risks and uncertainties , including imprecision in estimate capital expenditures and operating expenses, stock market volatility, general economic and business conditions in North America and globally, risks associated with liquidity and capital resource requirements, that may cause future results to differ materially from those expected and the forward-looking statements included in this news release should not be unduly relied upon. See also "Risks Factors" in the Company's Annual Information Form available on SEDAR at www.sedar.com. Those factors are not, and should not be construed as being exhaustive. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture