SOURCE: Stratex Oil & Gas Holdings, Inc.

Stratex Oil & Gas Holdings, Inc. Logo

May 20, 2013 07:45 ET

Stratex Oil & Gas Holdings Reports a Revenue Increase of 21% for the 3-Month Period Ended March 31, 2013 Compared to 3-Month Period Ended March 31, 2012

WATERTOWN, CT--(Marketwired - May 20, 2013) - Stratex Oil & Gas Holdings, Inc. (OTCQB: STTX) ("Stratex") began its operations in January 2011 and is the resultant company after a merger in July 2012. Stratex is aggregating oil and gas leases on properties primarily in the Bakken formation in North Dakota and Montana even though it owns leases in other formations and locations. We do not intend to primarily operate the drilling programs pertaining to our holdings, but rather to participate in the cash flow through a carried interest in each property.

Stratex currently owns an interest in 166 oil wells which is the source of our revenue. Stratex also controls leases in North Dakota, Montana, Nebraska, Colorado and Kansas and Texas; these leases are expected to provide a source of future oil drilling properties which, due to their locations, are expected to become more valuable particularly as the Bakken formation is further developed in North Dakota and Montana. There is no assurance that such an outcome will be realized.

The revenues generated from oil production for the period ended March 31, 2013 were approximately $267,000 vs. $220,000 in the same period a year ago. This 21% increase was attributable to the increase in the number of and interest in producing wells owned by the company in the relevant periods.

Operationally, production expenses decreased to $60,000 from $68,000 for 3-month period ended March 31, 2013 versus the 3-month period ended March 31, 2012. Depletion and amortization expenses were approximately the same in both periods at $66,000 and $67,000 respectively. General and administrative expenses increased from $282,000 for 3-month period ended March 31, 2013 to $456,000 from the 3-month period ended March 31, 2012 due to a combination of salaries and payroll expenses as well as stock based compensation to consultants and employees offset by a decrease in professional fees due to the merger consummated in July 2012.

We have incurred net operating losses through the first quarter of 2013. We are in the early stages of acquisition and development of oil and gas leaseholds and properties, and we have been funded primarily by a combination of equity issuances and debt, and to a lesser extent by operating cash flows. At March 31, 2013, we had cash and cash equivalents totaling approximately $460,000.

As of March 31, 2013, we have approximately 15,220 net acres in Montana, North Dakota, Nebraska and Colorado and Texas. We do not own the majority in most of these working interest in this acreage, nor do we have any ability to influence the potential development of this acreage within the terms of the lease. These working interests grant us the right, as the lessee of the property, to explore for, develop and produce oil, natural gas and other minerals, while bearing our portion of related exploration, development and operating costs.

The Bakken formation is recognized internationally as a major source of oil reserves. The United States Geological Survey (USGS) estimates that the Bakken has some 4.3 billion barrels of recoverable oil. The Keystone pipeline, which runs along the US-Canada border, was halted by President Obama and we expect it to be approved and construction to be resumed in the near future. If approved, it will be a principal means of transporting the Bakken oil from the Canadian and US portions of the formation to the refineries. It is believed that the Bakken oil fields and the shale gas fields in other parts of the US will make the US energy independent this decade.

Stratex has acquired these properties for cash in all cases (raised through sales of our common stock and a small amount of debt securities) except for an acquisition that closed in November 2012. That acquisition, valued at almost $700,000, the Divide County, North Dakota properties, was acquired by means of a cash payment and an issuance of shares of our common stock. 

We expect to continue to acquire oil and gas properties and to build our asset base. As the deal flow that we are seeing is ever expanding, we believe we will be raising capital through equity sales and debt financing to continue to acquire more properties and to generate cash flows by participating in the development of the drilling programs that each property is designed to support.

To receive timely information on Stratex Oil & Gas Holdings when it hits the newswire, sign up for Stratex's email news alert system at:

About Stratex Oil & Gas Holdings, Inc.
Stratex is an independent energy company focused on the exploration, acquisition, and production of crude oil in the Bakken and Three Forks formations in North Dakota and Montana. Its oil and natural gas operations are primarily concentrated in two Rocky Mountain basins, the Williston Basin of North Dakota and Montana, and the Green River Basin of Wyoming. Stratex's corporate strategy is to internally identify prospects, acquire lands encompassing those prospects, and evaluate those prospects using subsurface geology, geophysical data, and exploratory drilling. Using this strategy, Stratex has developed an oil portfolio of proven reserves, as well as development and exploratory drilling opportunities on high potential oil prospects.

Stratex's core operating areas are the Williston Basin in North Dakota and Montana, and the Denver-Julesburg Basin in Colorado. In the Williston Basin, Stratex focuses on oil production from multiple zones including the Bakken Shale and Three Forks Sanish Formations. In the Denver-Julesberg Basin Stratex focuses on the Niobrara Formations.

Stratex engages geologists, petroleum engineers, and geophysicists with years of relevant industry experience in the basins where the Company operates. Stratex strives to retain operations on its lands wherever possible in order to control the timing of the development of its leasehold. For more information visit:

Safe Harbor
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Additionally, words such as "seek," "intend," "believe," "plan," "estimate," "expect," "anticipate" "project" and other similar expressions are forward-looking statements within the meaning of the Act. Some or all of the events or results anticipated by these forward- looking statements may not occur. Factors that could cause or contribute to such differences include the ability of Stratex Oil & Gas to attract customers for its services, and to continue developing its oil & gas assets. Further information on Stratex's risk factors is contained in its filings with the Securities and Exchange Commission, including the Form 8-K filed in connection with the Merger. Stratex Oil & Gas does not undertake any duty nor does it intend to update the results of these forward-looking statements.

Contact Information