Strata-X Energy (Toronto Venture: SXE) is pushing ahead with its development of the Vail Oil Project's horizontal Burkett 5-34HOR well as part of its strategy to find and develop high reward opportunities.
- Burkett 5-34HOR well produced 100 barrels of oil in the past 24 hours;
- Oil sales have commenced, last sales @ $93/bbl;
- Production test of the targeted Lingle formation continuing;
- Flared gas remains steady at an estimated 100 MCFD; and
- Permanent production facilities are being installed.
Tim Hoops, President of Strata-X commented, "We're very pleased with the results and trends that we see so far in the production testing of our Burkett 5-34 HOR well. We believe that the original stimulation of this well, encountered both the targeted Lingle Formation and an adjacent zone that contains higher water concentrations. As we continue to draw down the hydrostatic pressure in the well, we are continuing to see an increase in our oil production rates. It is still early days in the production testing program, but these results are encouraging.
The production testing results so far demonstrates that the Lingle Formation can be successfully multistage stimulated in a horizontal well to yield significant improvements in oil flow rates compared to historical, vertical well completions. This is the first stimulated horizontal well in the Lingle Formation. Based on our first experience here, and with the information gained in successfully bringing the Burkett well on production, Strata-X believes significant improvements in future wells may be achieved using more optimal drilling, stimulation and completion methods. The expected commercial results continue to reinforce our strategy of delivering exceptional future shareholder value from our 100% owned 72,000 acre projects in the Illinois Basin."
The company is based in Denver.