DENVER, CO and BRISBANE, AUSTRALIA and VANCOUVER, BC--(Marketwired - February 28, 2017) -
- Botswana operating subsidiary, Rhino CBM Pty Ltd., established.
- Transfer of the Serowe tenements to Rhino underway.
- Retained local Botswana exploration and regulatory experts.
- Well design prepared and contracts let for Strata-X first CSG well in Botswana.
- Well to commence once approvals granted.
The directors and management of Strata-X Energy Ltd. ("Strata-X" or the "Company") (TSX VENTURE: SXE) (ASX: SXA) are pleased to announce that it is advancing its Serowe CSG Project ("Project"), located in the Republic of Botswana, through the establishment of in-country operating subsidiary, Rhino CBM (Pty), Ltd ("Rhino"). With the establishment of Rhino, the Company has initiated the process of transferring into the entity the 273,000 gross acres of prospecting licenses that target the rich coal seam gas resource. The transfer grants Strata-X, through Rhino, full operational control of the Project that has 1.045 Tcf (1075PJ) of recoverable Prospective Resources.(1)
ASX disclosure note - 5.28.2 - The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
Rhino CBM (PTY), Ltd. is a Republic of Botswana entity wholly owned by Strata-X Australia Pty Ltd, a direct subsidiary of the parent Company. Strata-X will wholly own the interests of Rhino until the final earned ownership is determined through the completion of three earning phases that will culminate with the certification of contingent reserves over the Project. The Company can earn up to a 75% interest in the Project. This arrangement grants Strata-X complete operational control over the Project, allowing its management to determine the best exploration plan to quantify the prospectivity of the permits. The Directors of Rhino from Strata-X are Ron Prefontiane, Greg Hancock and Tim Hoops, along with Modisana Botsile, a Botswana citizen with whom Strata-X has contracted for in-country consulting.
To complete the 2017 Phase 1 farm-in, Rhino will core an existing wellbore that has been cased to the top of the coal interval and conduct industry standard analysis of the cored coal. One additional well will be drilled and cored later this year and will be equipped for a production test of the coals. To complete this work programme, Strata-X is working with Weatherford Labs in Perth, Australia for the coring and wellbore logging of the wells.
The Company has applied for the Surface Use permits it will require to conduct its 2017 work programme. Approval of the Surface Use permits is expected within 45 days.
In order to advance its 2017 work programme, Strata-X has contracted with two in-country experts, Mr. Jeff Claeys, who will handle Rhino's Operations and Mr. Modisana Botsile, who will address regulatory matters. With the assistance of Mr. Claeys and Mr. Botsile, Rhino is interviewing potential contractors and bidding out the services necessary to conduct the 2017 programme and has also begun applying for the necessary regulatory approvals to conduct operations in the Republic of Botswana.
(1) Prospective Resources figures are from an audit report prepared by MHA Petroleum Consultant dated 26 October 2016 following their audit of the available technical data including the geological interpretation, information from relevant nearby wells, analogous reservoirs and the proposed program for the Project, prepared and presented to MHA by Strata-X. There is no certainty that stated resources will be commercially viable to produce any portion of the resources. A high level of uncertainty exists with the Prospective resources given the lack of historical drilling, available data and other productivity factors that limit the economic viability of coal seam gas deposits. The Report reviewed only Prospective Resources as the project is not sufficiently developed to assign Contingent Resources or additional Petroleum Reserves to it. Stated Prospective Resource figures are Best Estimate – undiscovered natural gas quantities and net of a 6% royalty and are shown at a 75% working interest in the Project that Strata-X will only earn upon completing the farm-in program. The total costs associated with establishing the commerciality of this project are unknown at this time given the early stage of the Project's development. For additional information see Strata-X November 2016 Presentation
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 the States of California and Illinois in the United States of America and the Republic of Botswana. Strata-X has 89,825,208 common shares outstanding and trades under the symbol "SXE" on the TSX-V and "SXA" on the ASX.
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).
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 Exchange) accepts responsibility for the adequacy or accuracy of this release.