NUMEROUS BRIGHT COAL INTERVALS RETURN GAS
Highlights
- Strata-X’s 19B-1 well has successfully reached total depth of 474 metres.
- Several coals seams were intersected with gas bubbling out of the cuttings at surface.
- Currently prepping for logging of the well including state-of-the-art BMR logging program, followed by a final short term flow test.
- The interpretation of the results will be integrated into the current data to pursue a resource upgrade.
- The results will be used to design and potentially execute a production testing program of the well.
DENVER and BRISBANE, Australia and VANCOUVER, British Columbia, March 22, 2019 (GLOBE NEWSWIRE) -- The directors and management of Strata-X Energy Ltd. (“Strata-X” or the “Company”) (TSX-V:SXE) (ASX:SXA) are pleased to offer an update on the drilling operations of CSG well 19B-1, the first well in a 100% owned tenement located within the Company’s interpreted high graded area of the Botswana CSG fairway.
The 19B-1 well has reached a total depth of 474 meters. Several coals seams were intersected with gas bubbling out of the cuttings at surface. Wireline logging and a final short term flow test will be carried out in the coming days.
The well and drilling program will be suspended while the Company carries out a comprehensive internal review of future best drilling practices and identifies solutions to minimize future delays, ensuring timely and low cost operations going forward.
In addition to conventional wireline logging methods, a state-of-the-art Borehole Magnetic Resonance (BMR) logging program will also be carried out. This method, once calibrated and processed, may be used to estimate the gas content and permeability of the target coals. To calibrate the BMR logging, this well was drilled approximately 2.5 km from a fully-cored well drilled by the Government of Botswana in 2003.
That core hole had intersected bright coals with gas saturations up to 100%. Strata-X believes that successful calibration of the BMR logging method for the target coals will reduce the number of expensive fully-cored drill holes, plus the months required to finalize the results of each core hole allowing fast tracking and substantially reduced costs for future reserves certifications.
Well results along with the calibration of the BMR logging will be integrated into the current data set with the goal to pursue a resource upgrade and, if warranted, the long term production testing of this well. The final results should be available in April 2019.
If a production test is warranted, the BMR results will be integrated into the design of a production testing program. This production testing program will include completion of the well, installation of downhole and surface equipment plus construction of a water handling pond.
Commenting on reaching total depth of the first potential production well in Strata-X’s high graded area over the Botswana CSG fairway, Ron Prefontaine, Strata-X’s chairman stated:
“I am pleased to report that despite having encountered a number of operational and logistical issues, primarily due to the remote location and a new operating environment in Botswana, our team successfully finished drilling our first well. Cost overruns are estimated to be about USD$45,000 over the pre-drill cost. I believe the extra expense and extra time spent on this first well will pay dividends in future Serowe CSG Project operations. In particular, the knowledge gained along with new relationships nurtured, the Company is now confident we can drill low cost and timely wells when we appraise and develop our interpreted high graded area over the Botswana CSG fairway.”
The Company holds 4,784 KM2 (1,173,000 acres) over the Serowe CSG Project with a certified Prospective Resource of 3.3 TCF.(1) ASX disclosure note - 5.28.2 - The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
| (1) | Prospective Resources figures are from an audit report prepared by MHA Petroleum Consultant, a qualified reserves auditor, dated and effective 26 March 2018 following their audit in accordance with the COGE Handbook of the available technical data including the geological interpretation, information from relevant nearby wells, analogous reservoirs and the proposed program for the Project, prepared and presented to MHA by Strata-X. Prospective Resources are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development project. Prospective Resources have both an associated chance of discovery and a chance of development. A high level of uncertainty exists with the Prospective resources given the lack of historical drilling, available data and other productivity factors that limit the economic viability of coal seam gas deposits. The Report reviewed only Prospective Resources as the project is not sufficiently developed to assign Contingent Resources or additional Petroleum Reserves to it. Stated Prospective Resource figures are Best Estimate – undiscovered natural gas quantities and net of a royalty and are shown at a 100% working interest in the Project. The total costs associated with establishing the commerciality of this project are unknown at this time given the early stage of the Project’s development. 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. |
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 the States of California and Illinois in the United States of America and the Republic of Botswana. Strata-X has 89,538,318 common shares outstanding and trades under the symbol "SXE" on the TSX-V and "SXA" on the ASX.
For further information please contact:
Tim Hoops (USA)
President
+1 855-463-2400
info@strata-x.com
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).
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, which relate to future events or future performance, including but not limited to, the completion and size of the Placement, receipt of regulatory approvals and timing thereof, the Corporation’s business strategies and plans for the use of such Placement proceeds, capital expenditure programs and estimates relating to timing and costs, and reflect management's current expectations and assumptions, including, but not limited to the timing and receipt of necessary regulatory approvals and third party approvals and completion of the Placement 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, 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 available on SEDAR at www.sedar.com. 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.