FOR: STRATA-X ENERGY LTD.
TSX VENTURE Symbol: SXE
ASX Symbol: SXA
Date issue: April 12, 2017
Time in: 6:30 PM e
DENVER, CO and BRISBANE, AUSTRALIA and VANCOUVER, BC --(Marketwired - April 12, 2017) -
-- Strata-X is currently reviewing drilling proposal from DWD DrillingTechnologies Pty Ltd. Agreement execution expected in two weeks -- Coring operations, subject to rig availability, expected to commence in 8 weeks -- Strata-X has appointed Weatherford Labs to analyse the core -- Surface area rights have been approved in advance of the coring operation -- Strata-X has formed Rhino CBM Pty Ltd and permits have been transferred to it by MPE.
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 Serowe Coal Seam Gas Project in Botswana. As announced previously, the Company has farmed into approximately 273,000 acres in the Kalahari Basin CSG Fairway and has the opportunity to achieve a 75% working interest in the project, which has an estimated 1.045 Tcf (1075PJ) of recoverable Prospective Resources net to the Company's interest. (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.
Rhino CBM Pty Ltd. (100% owned) has been established and is now the registered holder of the exploration permits after they were transferred to it from MPE. Rhino will be the operator of the Serowe Coal Seam Gas Project.
Coring and other services have been secured and a drilling contract is expected to be executed within 2 weeks. It is anticipated that operations to core approximately 150 meters will commence on the NWB-352-1-W005 core hole within the next 8 weeks,' subject to rig availability. The core will be handled and analyzed by Weatherford Labs.
Surface Access Rights have been approved for the upcoming coring operations and other subsequent work. All other government approvals and notices have been obtained or are expected shortly.
The NWB-352-1-W005 core hole is a condition of the Phase 1 farm-in with MPE and is fully funded. After the results of the core hole have been evaluated, the Company intends on drilling, coring and production testing an additional well to evaluate the prospectivity of the Serowe Gas Fairway.
(1) Prospective Resources figures are from an audit report prepared by MHA Petroleum Consultant dated 26 October 2016 following their audit 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. There is no certainty that stated resources will be commercially viable to produce any portion of the resources. 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 6% royalty and are shown at a 75% working interest in the Project that Strata-X will only earn upon completing the farm-in program. 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. For additional information see Strata-X November 2016 Presentation
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 89,825,208 common shares outstanding and trades under the symbol "SXE" on the TSX-V and "SXA" on the ASX.
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).
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
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.
- END RELEASE - 12/04/2017
For further information:
For further information please contact:
Tim Hoops (USA)
FOR: STRATA-X ENERGY LTD.
TSX VENTURE Symbol: SXE
ASX Symbol: SXA
INDUSTRY: Energy and Utilities - Oil and Gas
RELEASE ID: 20170412CC013
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