DENVER, COLORADO and BRISBANE, AUSTRALIA and VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/09/15 -- The directors and management of Strata-X Energy Ltd. ("Strata-X" or the "Company") (TSX VENTURE: SXE)(ASX: SXA) announce that further to the Company's press release dated February 2, 2015, after successfully testing two oil zones in the Blue Spruce #1 well on the Illinois Shallow Oil Project, the well has been set up for production in the Aux Vases formation. The testing consisted of individually perforating and swabbing 3 of the 4 interpreted oil zones starting with the bottom zone and continuing to the top zone. The Company has determined that 2 of the 3 tested zones, the Middle McClosky and Aux Vases, the main targets of the well, are expected to be commercially productive.
The successful stimulation of the Aux Vases formation late last week resulted in 10 barrels of fluid entry per hour with a 25% cut of light oil. Following installation of long-term production facilities, the oil cut is expected to increase as the water pumped into the formation during the stimulation is recovered.(1)
Production tubing, rods and a downhole pump were placed in the hole to individually produce the Aux Vases formation. At a later date, pending the near-term productivity evaluation of the Aux Vases formation, the Company may elect to comingle the Aux Vases production with the Middle McClosky formation in the well.
Pending positive commercial oil flow results, the Company intends to drill offsetting production wells during 2015. Permitting is underway and the next well is planned for March 2015.
The area has experienced a warmer than normal winter resulting in muddy ground conditions. The installation of facilities required for long-term production may be delayed until conditions improve.
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, California, Texas, Illinois 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) Results are from the Blue Spruce #1 well, located in Wayne County, Illinois, on a 160 acre lease held by the Company with a private owner of the mineral rights. Strata-X owns a 100% working interest in the well where the targeted formations consist of limestone carbonates and sandstones varying in depths between 2,900' and 3,250' feet. Results are from swab testing over a 3 day period between the zones tested. To date recoveries during the swab testing consisted of natural gas, crude oil, stimulation fluid and formation water. One of the two zones tested to date was stimulated with approximately 24,000lbs hydraulic fracture treatment.
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.
Contacts:
Strata-X Energy Ltd.
Tim Hoops (USA)
President
+1 855-463-2400
info@strata-x.com
Strata-X Energy Ltd.
Colin Christensen (Canada)
Investor Relations
+1 403-483-8363
colin@strata-x.com
Strata-X Energy Ltd.
Julia Maguire (Australia)
Investor Relations
+61 419 815 386
julia@strata-x.com
