DENVER, COLORADO and BRISBANE, QUEENSLAND and VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/29/13 -- Vail Oil Project - Burkett 5-34HOR well HIGHLIGHTS:
-- Successful execution of first horizontal well-- Total depth of 6,762 feet reached (with 1,824 feet of lateral drilling)-- Oil and gas shows encountered and oil visible in drilling mud from targeted Lingle formation-- Next step - execute stimulation of the oil zone - on track for completion by end of October 2013-- Highly encouraging progress to date in this 100% owned project
The directors and management of Strata-X Energy Ltd. ("Strata-X" or the "Company") (TSX VENTURE: SXE)(ASX: SXA) are pleased to announce that the Company has reached a total depth of 6,762 in the Burkett 5-34HOR well. The revised lateral length of approximately 1,824 feet was drilled through the targeted Lingle formation. While drilling the lateral portion of the well, oil and gas shows were encountered and live oil was visible in the drilling mud. Please refer to Slide 14 of the Vail Project Primer found on the Company's website (www.strata-x.com) which illustrates the current stage of the well and the Company's plans for the overall development of the well.
The next stage is to set a liner through the lateral section using mechanical packers and a sliding sleeve completion system. Once the liner has been set the drilling rig will be moved off location. As indicated on Slide 16 of the Vail Primer, the Company will conduct a breakdown and pressure test to obtain definitive reservoir data. This pressure data together with rock mechanics data derived from the core taken in the vertical stage, will be used to finalize the stimulation design for the well. Since the rock mechanics data being undertaken by a third party is not scheduled to be completed until the middle of October, the Company anticipates that it should be able to finalize the design and execute a stimulation of the oil zone by the end of October 2013. The Company owns a 100% working interest in the well and 48,000 net acres in the Vail Oil Project overall.
Ron Prefontaine, the Chairman of Strata-X said, "We have always stated our primary risks for the Vail Oil Project in the Illinois Basin and our Maverick Oil Project in the Eagle Ford shale trend were successful execution of the well drilling and subsequent completion programs in these projects. Strata-X's CEO Tim Hoops, and his technical team led by Vice President of Operations Larry Kellison, have successfully executed the first horizontal well in our Illinois Basin project within an oil saturated dolomitic reservoir. I am very encouraged by the oil and gas shows encountered in the drilling of this well and I am looking forward to continued successful execution of the next stages of the well including the stimulation and testing program of the oil zone in the coming months".
As previously announced the Company will be presenting at the RIU Good Oil Conference which is being held September 3-4, 2013 in Freemantle, Western Australia. Timothy Hoops, President and Director of Strata-X, will give a presentation on the Company on September 4, 2013 at the afternoon session. The Good Oil Conference is one of the leading venues for Junior explorers in Australia.