Strata-X Acquires 8,846 acres in Maverick Oil Project, Texas
GOLDEN, COLORADO and VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 4, 2012) - The directors and management of Strata-X Energy Ltd ("Strata-X" or the "Company") (TSX VENTURE:SXE) are pleased to provide the following update on the Company's high potential Maverick Oil Project located in the Eagle Ford Fairway, Maverick County, Texas. Strata-X elected to convert certain land option rights it was holding into full exploration leases covering a total of 8,846 net acres. The Company has obtained 100% of these leases.
The Company has also reached an agreement on an additional 1,135 net acres of Eagle Ford exploration leases which are in the process of closing. These two transactions will bring Strata-X's total land holding in the Maverick Oil Project to 10,945 net acres. The Company is continuing negotiations to expand its leasehold in the area.
About the Maverick Oil Project:
Strata-X purchased rights to this Project in September 2012. The Maverick Project is located in Maverick County, Texas (USA) within the Maverick Basin targeting the prolific Eagle Ford Shale formation. The current land position covers approximately 9,711 net acres including a 15% working interest in a producing 660 acre unit.
Within the aforementioned 660 acre unit, the previous operator drilled a horizontal well into the Eagle Ford shale formation which flowed at peak rates in excess of 200 boepd of 40 degrees API oil. The 660 acre unit well had operational issues during completion which Strata-X believes limited the well's performance. Strata-X's exploration plan for the area includes the near-term drilling of a vertical control well to obtain valuable data from an extensive coring program as well as other petrophysical properties of the targeted Eagle Ford and Buda Formations. This data will allow the Company to better formulate its engineering plan.
The Company believes that significant technical progress has been made by the industry in unlocking oil and gas from the Eagle Ford in the past year. Newly-developed techniques should help the Company unlock the potential of its leasehold. Evidence of improved completion techniques is shown by the successful Sanchez Energy, Mark & Sandra #2H, well in Zavala County, Texas which had a 24-hour initial production rate of 931 boepd (96% oil) from a 5,476 foot, 19 multi-stage stimulated horizontal well. The Mark and Sandra #2H well is located only 26 miles from the Company's lands.
In other news, the Company wishes to correct its news release dated November 27, 2012 concerning a loan agreement for up to AUD$2 million to confirm that the lending party is Prepet Pty Ltd. ATF the Jarat Trust, which is also a company owned and controlled by director and Chairman of the Company, Ron Prefontaine.
Strata-X is a Golden, Colorado 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 and Texas. Strata-X has 50,817,105 common shares outstanding and trades under the symbol SXE on the TSX.V.
Public documents for Strata-X Ltd. can be found at SEDAR (www.sedar.com).
BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
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 are 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.
FOR FURTHER INFORMATION PLEASE CONTACT:
Strata-X Energy Ltd.
Strata-X Energy Ltd.