Click here to close now.




















Welcome!

News Feed Item

Strata-X Closes Transaction to Acquire Additional Illinois Basin Assets

DENVER, COLORADO and BRISBANE, QUEENSLAND and VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 03/24/14 --


--  Closed acquisition of the 23,595 acre Copper Mountain Oil Project in the
    Illinois Basin.
--  Increased total acreage position in Illinois Basin by almost 50% to
    approximately 72,000 acres.
--  Approximately 1.5 billion barrels of historical light oil production is
    adjacent to and within 20 miles (32 km) of Strata-X's Illinois Basin
    acreage position.
--  The Copper Mountain Project has one horizontal well productive from a
    new unconventional oil play which is interpreted to extend over the
    Project area.
--  In addition, there are multiple shallow (700 to 1500 metre) conventional
    and unconventional light oil targets which Strata-X plans to develop
    using modern exploration and completion methods.

Further to press releases dated March 5 and March 20, 2014, 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's Purchase and Sale Agreement to acquire 23,595 acres of production and exploration assets in the Illinois Basin (the "Acquisition") has formally closed. The Acquisition is known as the Copper Mountain Oil Project and is prospective for conventional and unconventional light oil accumulations in shallow Mississippian age formations (from 700 metres depth) as well as the deeper Devonian age formations (approx. 1200 to 1600 metres depth).

Strata-X now owns a 100% net working interest in oil and gas exploration rights on approximately 72,000 net acres covering the Vail and Copper Mountain Oil Projects in the Illinois Basin, USA. The acreage position that Strata-X has assembled is located within a 20 mile radius of oil fields that have produced over 1.5 billion barrels of oil from a multitude of producing formations. Most of these formations are prospective under the Company's acreage.

Total consideration for the Acquisition is USD$2.25 Million, which Strata-X funded with existing cash reserves. Included in the Acquisition is a producing horizontal well which has an estimated net present value of approximately USD$1.7 million(1) as confirmed by a qualified third party reserve analyst employing a 10% discount rate.

This Acquisition marks an increased focus by Strata-X on the prolific Illinois Basin where over 4 billion barrels of light oil from multiple formations have been produced. Strata-X plans to use modern exploration and completion methods to explore and develop the substantial conventional and unconventional light oil potential it has identified.

For additional details on this project, please refer to the Copper Mountain Oil Project Presentation found on the Company's website at www.strata-x.com.

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 139,785,415 common shares outstanding and trades under the symbol "SXE" on the TSX-V and "SXA" on the ASX.

(1) This information relates to Petroleum Reserves/Prospective Resources/Contingent Resources that was prepared and published by Chapman Petroleum Engineers Ltd. and dated 21 March 2014 and published on Strata-X Energy Ltd's website to meet the Company's ongoing disclosure requirements (available online at www.strata-x.com), and fairly represents, information and supporting documentation prepared by, or under the supervision of Charles Moore, employed by Chapman Petroleum Engineers Ltd. which is independent of Strata-X Energy Ltd. At the time of the Chapman Petroleum Engineers Ltd. report dated 21 March 2014, Charles Moore was an employee of Chapman Petroleum Engineers Ltd. and a member of the Society of Petroleum Engineers (SPE) amongst other professional petroleum organisations. Chapman Petroleum Engineers Ltd. and Charles Moore consent to the inclusion of this information in this document. As of the issuance of this document, Strata-X Energy Ltd management is not aware of any material information that would change the results of the Chapman Petroleum Engineers Ltd. report as published in this this document. Reserve information included in this document for the Blessing #1 well are Petroleum 1P Reserves, per an independent reserve report dated 21 March 2014 from Chapman Petroleum Engineers Ltd. who's author, Charles Moore, member Society of Petroleum Engineers, consents to the inclusion of this reserve information in this Press Release as it appears. Figures shown reflect Strata-X's economic interest in the property using a deterministic estimation method.

Strata-X is the operator of the well and holds a 100% working interest in the Blessing #1, 160 acre unit comprised of approximately 80 individual leases/tenements, which is operated via the Company's operating license's in the State, a well permit and a tank battery permit held or in the process of being transferred to the Company from the Illinois Department of Natural Resources. Estimates of future production are based on historical production testing of the well. The reference point for reserves is the associated tank batteries for the well. The economic assumptions used to generate reserve information on the Blessing #1 well are as follows: $90 oil net at reference point, USD$1,500 monthly operating costs, USD$0.50 per water barrel for disposal, USD$30,000 immediate facilities investment, 84.76% Net Revenue Interest, 24 August 2029 abandonment date, forecasted future production, USD $25,000 plugging costs and USD$80,000 equipment salvage value. The Blessing #1 well was given commercial producibility status by the Company following it and Charles Moore's review of its historical production. Reserves estimates were generated following a review of the producing reservoir, historical production rates and the planned production method of the well (artificial pump lift). Production quantities over the projected economic lifespan on the Blessing #1 well without significant further investment, are expected to be 37,440 gross and 31,730 net barrels of oil.

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."

CAUTIONARY STATEMENTS

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.

To view the figure associated with this press release, please visit the following link: http://media3.marketwire.com/docs/SXEfig1.pdf.

Contacts:
Strata-X Energy Ltd.
Tim Hoops (USA)
President
+1 855-463-2400
[email protected]

Strata-X Energy Ltd.
Colin Christensen (Canada)
Investor Relations
+1 403-483-8363
[email protected]

Strata-X Energy Ltd.
Duncan Cornish (Australia)
Corporate Secretary
+61 7 3212-6299
[email protected]
www.strata-x.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. The DevOps approach is a way to increase business agility through collaboration, communication, and integration across different teams in the IT organization. In his session at DevOps Summit, Chris Van Tuin, Chief Technologist for the Western US at Red Hat, will discuss: The acceleration of application delivery for the business with DevOps
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, S...
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
Puppet Labs has announced the next major update to its flagship product: Puppet Enterprise 2015.2. This release includes new features providing DevOps teams with clarity, simplicity and additional management capabilities, including an all-new user interface, an interactive graph for visualizing infrastructure code, a new unified agent and broader infrastructure support.
"Alert Logic is a managed security service provider that basically deploys technologies, but we support those technologies with the people and process behind it," stated Stephen Coty, Chief Security Evangelist at Alert Logic, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
"ProfitBricks was founded in 2010 and we are the painless cloud - and we are also the Infrastructure as a Service 2.0 company," noted Achim Weiss, Chief Executive Officer and Co-Founder of ProfitBricks, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
"We specialize in testing. DevOps is all about continuous delivery and accelerating the delivery pipeline and there is no continuous delivery without testing," noted Marc Hornbeek, Sr. Solutions Architect at Spirent Communications, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit f...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
"We have been in business for 21 years and have been building many enterprise solutions, all IT plumbing - server, storage, interconnects," stated Alex Gorbachev, President of Intelligent Systems Services, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...