Strata-X Energy Ltd.

Strata-X Energy Ltd.

August 07, 2014 19:55 ET

Strata-X Energy Ltd.: Gaining Momentum in Illinois Basin

Production Testing Begins at Burkett 5-34HOR Well

DENVER, COLORADO USA and BRISBANE, QUEENSLAND AUSTRALIA and VANCOUVER, BRITISH COLUMBIA CANADA--(Marketwired - Aug. 7, 2014) - Strata-X Energy Ltd. (TSX VENTURE:SXE)(ASX:SXA) is pushing ahead with its development of the Vail Oil Project's horizontal Burkett 5-34HOR well as part of its strategy to find and develop high reward opportunities.


  • Commenced production testing of our 'proof-of-concept' well testing the Lingle Formation;

  • Higher than expected total fluid rates, with oil rates steadily increasing with the current rate at approximately 30 barrels oil/day;

  • An electric submersible pump was installed at a depth of 3,250'; The pump has a rated capacity of 1,000 barrels per day, it is currently operating at less than full capacity;

  • Natural gas is currently being flared and is estimated to be in excess of 100 mcf/day; future plans may include gas sales;

  • Permanent production facilities are being sourced.

President and Managing Director Tim Hoops said, "The wellbore stimulation has been outstanding and, as expected, oil rates are steadily growing. We are testing the robustness of the well and will be upgrading our production facilities on the lease. This will enable us to pump more fluid and therefore extract more oil. The additional fluid can be easily and cost effectively managed. I am delighted with the initial results. They support our strategy of creating substantial growth for our shareholders, by finding and developing high reward opportunities that have relatively low entry costs."

The Burkett 5-34HOR well program is a proof of concept well for the Vail Oil Project. The program is designed to provide the additional production and reservoir performance information required from the reservoir to support the field developmental planning process.

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About Strata-X

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 146,288,969 common shares outstanding and trades under the symbol "SXE" on the TSX-V and "SXA" on the ASX.

Well Information

The Burkett 5-34 horizontal oil and gas well is located in Clay County, Illinois USA and is comprised of an 80 acre production unit covering approximately 5 exploration leases with Strata-X retaining a 100% working interest in the Well. The targeted formation of the well is the Devonian aged Lingle formation, a carbonate reservoir. The well has recovered oil, natural gas and formation fluid with oil to water ratios ranging from 0% to 8% with natural gas metering. No pressure declines were observed during this limited test nor material declines in oil production. In May 2014 the Burkett 5-34 underwent a nitrogen assisted completion stimulation consisting of 7 stage intervals using an approximate total of 176,000 pounds of proppant. The aforementioned information regarding this or historical production testing on the Burkett 5-34HOR well is not necessary indicative of long-term performance or of ultimate recovery.

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) ( and (Australia).

CAUTIONARY STATEMENT: By definition of the COGE Handbook - "Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered." Further the Handbook states - Caution (per NI 51-101/5.9(2)(v)(B)) - "There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources." In addition, per NI 51-101/5.6 "the estimated values disclosed do not represent fair market value."

This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. The use of any of the words "anticipate", "continue", "estimate", "expect", 'may", "will", "project", "should", 'believe", and similar expressions are 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 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 "Risks and Uncertainties" in the Company's Filing Statement dated August 30, 2011 available on SEDAR at 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 Exchange) accepts responsibility for the adequacy or accuracy of this release.

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