The directors and management of Strata-X Ltd (SXE.V) are pleased to provide the following update on the acquisition of two new high potential oil development projects.
Leasing for oil and gas exploration rights on the first project, the Vail Oil Project, has so far yielded approximately 35,800 gross and 33,850 net acres towards a target of 50,000 acres. The Company has 100% direct working interest and operates the project.
Strata-X has also entered into a conditional agreement to acquire and operate 75% working interest of approximately 21,000 gross and 15,000 net acres over a shale oil project in Texas.
To fund the ongoing acquisition of the Vail Oil Project and the Texas shale oil project, the Company plans to raise up to $7 million through the sale of convertible debentures.
Strata-X is 'First Mover' on the Vail Oil Project
Strata-X completed an extensive in-house analysis of a highly productive onshore USA basin earlier this year. The results of this technical work led to the identification of an unconventional continuous oil field in a dolomitic reservoir, referred to as the Vail Oil Project, which is interpreted to extend over an area of approximately 600 square miles. The Project is located on the western flank of the basin at depths between 3,500 to 5,000 feet.
Strata-X, in-house, log analysis has interpreted oil saturations in 120 historic wells that intersected the dolomitic reservoir. The numerous oil recoveries and oil shows from the reservoir supports the log analysis.
The dolomitic reservoir target of the Vail Oil Project is immediately below a world-class source rock which is interpreted to have expelled between 300 and 1,000 billion barrels of oil. To date the basin has produced about 4.3 billion barrels of oil primarily from structures above the source rock.
Strata-X recognizes direct analogies between the Elm Coulee Oil Field, located in the Williston Basin, and the Vail Oil Project. Elm Coulee has produced over 123 million barrels to date from a continuous, unconventional oil field from the Bakken dolomitic reservoir and is expected to ultimately produce over 250 million barrels of oil.
The dolomitic reservoirs in both Vail and Elm Coulee are of the same geological age, have similar thickness and are immediately below highly generative source rocks.
Elm Coulee has about 4 million barrels of oil in place per section which is similar to Vail's interpreted oil in place per section. Strata-X interprets the target