GOLDEN, COLORADO and VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/05/13 -- The directors and management of Strata-X Energy Ltd ("Strata-X" or the "Company") (TSX VENTURE: SXE) are pleased to provide an update on the Company's co-listing on the Australian Securities Exchange ("ASX") and to announce that its subsidiary company, Strata-X, Inc., has completed and closed a Transaction to purchase three producing oil and gas leases ("Transaction") in the State of Illinois, USA to further the development of the Vail Oil Project.
The acquired properties cover 160 gross acres and include a total of six wells, of which four are producing, one is shut-in and one is an active salt water disposal well. Strata-X, Inc. will be the operator of the properties. The total cost of the Transaction was $306,900 USD. Currently, the wells are producing approximately five barrels of oil per day. The leases and wells acquired in the Transaction will assist the Company in its exploration of the Vail Oil Project by providing increased well control in the area in which the Company intends to drill its first horizontal well, thereby reducing drilling risk. Strata-X interprets there is significant production potential remaining in this field and is planning to carry out modern enhanced production methods to extract this potential including the use of multistage hydraulic fracture completions. Strata-X is a first mover on the Vail Oil Project and in order for the Company to continue the low cost entry advantages of being first mover, it does not plan to reveal the exact location of the Vail Oil Project until a later date.
Further to the Company's press release dated December 21, 2012, the Company is moving forward with its co-listed Initial Public Offering of shares on the Australian Securities Exchange ("ASX"). The Offering was opened on January 7th, 2013 and is expected to close on February 8th, 2013. The Company anticipates February 20th, 2013 will be the first day the stock is traded on the ASX and will be traded under the ticker symbol "SXA". The Company's existing shares will continue to be traded on the TSX Venture Exchange under the symbol "SXE".
About the Vail Oil Project:
Strata-X is 'First Mover' on the Vail Oil Project
Strata-X completed an extensive in-house analysis of a highly productive onshore USA basin in 2012. The results of this technical work led to the identification of a potential unconventional continuous oil field in a dolomitic reservoir, referred to as the Vail Oil Project located in the State of Illinois, USA. It is interpreted to extend over an area of approximately 500 square miles. The project is located at depths between 3,500 and 5,000 feet.
The Company's in-house analysis covered 120 historic wells that intersected the dolomitic reservoir. Taken together with data on oil and gas recoveries from formation tests and reported oil shows in samples from the reservoir, this analysis supports Strata-X's interpretation that the reservoir is oil saturated. The dolomitic reservoir target of the Vail Oil Project is below the New Albany Shale, which is interpreted to have expelled in excess of 300 billion barrels of oil (Lewan, et al., 2002). To date, the basin has produced over 4 billion barrels of oil (Higley, et al., 2001), primarily from structures above the source rock where several studies have geochemically linked the oil produced from these reservoirs to the New Albany Shale (Hatch, et al., 1990).
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