DENVER, COLORADO and BRISBANE, QUEENSLAND and VANCOUVER, BRITISH COLUMBIA — (Marketwired) — 11/02/14 — STRATA-X ENERGY LTD – The directors and management of Strata-X Energy Ltd. (“Strata-X” or the “Company”) (TSX VENTURE: SXE)(ASX: SXA) are pleased to provide an update on the Burkett 5-34 HOR well, located in Clay County, Illinois. Following the installation of additional production equipment on the 31st of October, 2014, the well continues to clean up and produce oil at higher rates. During the past 24 hours the well has produced at total of 310 barrels of oil. To date a total of 3,050 barrels of sweet high gravity oil have been produced and sold. Oil cuts as high as 40% have been observed however the oil cut has averaged 23% over the past 6 hours.
As previously announced an electrical submersible pump has been working to reduce the fluid level on the Lingle formation in order to draw the hydrostatic pressure down in the well to a point where the Lingle reservoir can produce oil more effectively. This process often takes time until the full results are known but the well is showing longer term improvement both in terms of total oil rate and oil cut (a percentage of oil to the overall fluid produced). Higher flow rates of natural gas have also been observed which is also believed by the Company to be an indication of increased oil production from the Lingle reservoir. It is still too early to tell what the peak production rate or the ultimate recovery from this well will be. There is no assurance the well will continue to produce at this rate in the future.
Moving forward the company plans to increase the total flow from the well in order to achieve a rate that can be sustained and in balance with the dual reservoirs. The Company owned salt water disposal facility is working efficiently as designed.
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 146,288,969 common shares outstanding and trades under the symbol “SXE” on the TSX-V and “SXA” on the ASX.
This announcement was made in Canada and in Australia.
Public documents for Strata-X Energy Ltd. can be found at SEDAR (Canada) () 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, he Corporation–s business strategies and plans, capital expenditure programs and estimates relating to timing and costs, future production levels and rates, and reflect management–s current expectations and assumptions, including, but not limited to consistency of production 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 and oil and gas operations, 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 . 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
Strata-X Energy Ltd.
Colin Christensen (Canada)
Investor Relations
+1 403-483-8363
Strata-X Energy Ltd.
Julia Maguire (Australia)
Investor Relations
+61 419 815 386