The directors and management of Strata-X Energy Ltd. (TSXV: SXE) provided an update on the 2013 exploration and appraisal programs for its three key U.S. projects where it is the operator and majority interest owner.
Maverick Oil Project, Eagle Ford, South Texas - 10,945 net acres
In June, the company secured the services of a specialized analysis company, Total Depth Pty Ltd., to conduct proprietary seismic processing and interpretation analysis of the current 3-D seismic data on the Maverick Oil Project. This analysis was designed to assist the company in geological mapping for the proposed vertical well drilling campaign. To date, Total Depth Pty Ltd. has supplied the company with multiple prospective drilling locations based on its seismic interpretation.
One of the locations supplied by Total Depth Pty Ltd. is known as the Cinco Saus Creek #1. This location is currently being permitted and the company anticipates receiving all required regulatory approvals by late November. With this timing in mind, Strata-X has contracted Unison Drilling Inc. of Devine, Texas, to utilize their rig #11 to drill Cinco Saus Creek #1 and expects the rig to be mobilized to the location by the first week of December.
The Cinco Saus Creek #1 is designed and is being permitted as a vertical test of the targeted Eagle Ford formation in the Maverick Basin. In the company's assessment, the nature of the hydrocarbons and reservoirs within the Eagle Ford shale formation in and around the Maverick Basin requires a different approach to drilling and completion methods than those currently being utilized in deeper portions of the Eagle Ford trend. As such, Strata-X anticipates coring 600 feet of the targeted Eagle Ford shale and Buda formations. The information gained from the analysis of the core and well logging is expected to assist the company in designing the most efficient completion method for the well.
Vail Oil Project, Illinois Basin - 100% of 49,200 net acres
In July, Strata-X spudded the Burkett 5-34HOR well, the first company test well of the Vail Oil Project. It was designed to be drilled in two stages. First, the company drilled a vertical hole to the top of the target formation and then cored 60 feet of the formation. The vertical portion of the well reached a total depth of 4,730 feet. Oil and gas shows were encountered in the targeted Devonian Lingle formation and a drillstem test of the target recovered gas and oil cut mud. Then the well was drilled to a total depth of 6,762 feet with 1,824 feet of lateral drilled. A 7-stage sliding sleeve completion system on 4 1/2 inch liner was installed over the lateral portion of the well. While drilling the lateral portion of the well, oil and gas shows were encountered and live oil was visible in the drilling mud. Strata-X released the drilling rig at the beginning of September.
After a detailed examination of data gathered from the core of the targeted Devonian Lingle formation along with data collected during the drilling of the well, the company contracted Halliburton to conduct a completion stimulation of the well. It is anticipated that this work will begin the week of Nov. 18. In addition to the Burkett 5-34HOR well, Strata-X has begun the permitting process for two new horizontal well locations on the Vail Oil Project.
Sleeping Giant Gas Project, Williston Basin, North Dakota - 100% of 145,000 net acres
The Sleeping Giant project is located in North Dakota and is targeting natural gas resources trapped in the Niobrara Formation, a prolific producer of hydrocarbons throughout the Rocky Mountain Region. In the past several months the company has acquired additional strategic leases prior to beginning evaluation drilling of up to four pilot wells on this project.
In that regard, the company has begun the process of securing permits for up to four drilling locations from the North Dakota Industrial Commission in anticipation of commencing its drilling program in the coming months. The company has also begun negotiating a drilling contract for up to four exploratory wells with a local drilling company and anticipates finalizing the contract by early November.
Strata-X Energy Ltd. is an independent oil and gas exploration company with offices in Denver, Vancouver, B.C. and Brisbane, Queensland.