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.
The Company also intends to present at the ASX Spotlight Investor Conference to be held in Singapore & Hong Kong on October 29 and 31, 2013. More details will follow on times and location of this conference.
As previously announced (Press Release dated July 17, 2013) the Company released an Investor Presentation called the Vail Oil Project Primer which can be found www.strata-x.com.
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, California, Colorado, Texas, Illinois and Western Australia and production and development opportunities in California. Strata-X has 123,912,453 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).
By definition of the COGE Handbook - "Undiscovered resources are those quantities of oil and gas estimated on a given date to be contained in accumulations yet to be discovered." The Handbook further states - Caution (per NI 51-101/5.9(2)(v)(B)) - "There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources." In addition, per NI 51-101/5.6 "the estimated values disclosed do not represent fair market value."
This news release contains forward-looking statements, which relate to future events or future performance and reflect management's current expectations and assumptions. 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 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 "Risks and Uncertainties" in the Company's Filing Statement dated August 30, 2011 available on SEDAR at www.sedar.com. 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.
Strata-X Energy Ltd.
Tim Hoops (USA)
Strata-X Energy Ltd.
Colin Christensen (Canada)
Strata-X Energy Ltd.
Duncan Cornish (Australia)
+61 7 3212-6299