Strata-X Energy Ltd.
TSX VENTURE : SXE
ASX : SXA

Strata-X Energy Ltd.

June 10, 2015 19:09 ET

Strata-X Updates High Margin, By-Passed Pay Program

DENVER, COLORADO and BRISBANE, AUSTRALIA and VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 10, 2015) - STRATA-X ENERGY LTD (TSX VENBTURE:SXE)(ASX:SXA) -

  • Strata X outlines "By-Passed Oil" program to as a follow up to successful Blue Spruce project.
  • Drilling scheduled to commence July 2015
  • Follow up drilling in Lingle formation to be drilled Q3 2015

Strata-X Energy Limited is pleased to announce it has released an updated investor presentation which is available on its website at www.strata-x.com. The Company is focusing its efforts on developing the "by-passed pay" prospects in its Illinois Basin portfolio. A by-passed pay well is one that was drilled previously that has certain drilling and electrical log attributes that indicate commercial oil is present. By-passed pay prospects are generally low risk, high margin opportunities for the Company to drill at very low finding costs. Most of these wells were drilled 50 years or more ago when oil prices were less than $2/bbl with small profit margins. Using rigorous mapping techniques the Company has identified at least 12 leads and prospects it feels are by-passed pay opportunities at depths less than 4,000 feet.

Blue Spruce - By-Passed Pay discovery1

Earlier this year the Company successfully drilled and completed the Blue Spruce # 1 which resulted in a discovery of approximately 1.2 million barrels of 2P reserves, as determined by independent reserve evaluators. Plans are to begin development of the Blue Spruce discovery in June 2015 with the drilling of 2 development wells. The Blue Spruce #1 is currently shut in while an injector well is sourced to handle produced water. The Company anticipates drilling will begin in July 2015.

Oak By-Passed Pay Prospect

The Oak prospect is located approximately 7 miles from the Blue Spruce project and is situated on trend with historical production from the Aux Vases formation. Mapping indicates that the Oak prospect could consist of 3 linked pools which in total could contain over 11 million barrels of recoverable oil based on internal estimates using similar evaluation techniques as used on Blue Spruce. The cost to drill and evaluate the Oak prospect is estimated to be approximately $175,000. The Company anticipates drilling will begin in July 2015.

Maple By-Passed Pay Prospect

The Maple Prospect is located approximately 5 miles from the Blue Spruce project and mapping indicates that approximately 1.6 million barrels could be recovered based on internal estimates using similar evaluation techniques as used with the Blue Spruce project. Drilling is anticipated to begin in August of 2015 at a cost of $175,000 to drill and evaluate.

Lingle Oil Field

Following successful installation of a new disposal facility the Burkett 5-34 well has been placed back on production. Current rates are in line with expectations of approximately 50 BOPD. To date the well has produced 10,250 barrels of oil and generated over $750,000 in revenues. Plans are to drill the pilot well approximately 8 miles away at the Raccoon Creek location. This well will be cored and tested to confirm oil saturations and reservoir pressures prior to a second horizontal test. A horizontal well is currently scheduled in early 2016 should the test from the Raccoon Creek pilot well prove favorable.

Company President, Tim Hoops, stated that "we are excited about the by-passed pay prospects that we are generating at shallow depths of the Illinois Basin. Excellent well control should insure a high success rate. On the Lingle play we are confident that commercial oil exists and believe we can lower our capital costs significantly with a more effective completion program".

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, Illinois, California, Texas and Western Australia and production and development opportunities in California. Strata-X has 156,584,977 common shares outstanding and trades under the symbol "SXE" on the TSX-V and "SXA" on the ASX.

1 Reserve information cited in this News Release for the Blue Spruce Project are P2 reserves, per an independent third party report effective 1 April 2015 ("Report") from Chapman Petroleum Engineering Ltd. This information originally appeared in a news release by the Company dated 6 April 2015.

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 dated September 25, 2014 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.

Contact Information

  • Strata-X Energy Limited
    Tim Hoops (USA)
    President
    +1 855-463-2400
    info@strata-x.com

    Strata-X Energy Limited
    Colin Christensen (Canada)
    Investor Relations
    +1 403-483-8363
    colin@strata-x.com

    Strata-X Energy Limited
    Julia Maguire (Australia)
    Investor Relations
    +61 419 815 386
    julia@strata-x.com