The directors and management of Strata-X Energy Ltd. (Toronto Venture: SXE) have announced that the company's application to drill the Burkett 5-34HOR well in the Vail Oil Project has been approved by the Illinois Department of Natural Resources (DNR) - Mine & Minerals Division. Drilling of the Burkett 5-34HOR well, the first appraisal well in the Vail Oil Project, is expected to begin in late June. Strata-X currently has a 100% interest in 48,000 net acres covering the project.
The Burkett 5-34HOR well is expected to test the Devonian Lingle formation, a dolomitic reservoir which lies directly below the hydrocarbon-rich New Albany shale. This shale, which is interpreted to have expelled in excess of 300 billion barrels of oil (Lewan, et al., 2002), is the primary source of hydrocarbon generation in the Illinois Basin. To date, the basin has produced over 4 billion barrels of oil (Higley, et al., 2001). The areas in the immediate vicinity of the test well have had historic production and quality oil shows from the Devonian Lingle formation. This includes the production purchased by the company in January 2013 (Press Release dated February 5, 2013).
The Burkett 5-34HOR well is to be drilled in Clay County, Ill., west of the town of Xenia, Ill.. As previously announced the company executed a drilling contract with Les Wilson Inc. for the Burkett 5-34HOR well. The company expects to utilize Les Wilson Inc.'s rig #25 for this test.
The permit issued by the DNR for the Burkett 5-34HOR well authorizes the following (approximate) drilling parameters: a true vertical depth of 4,500ft, a true measured depth of 9,300ft and a horizontal leg length of 4,300ft. Strata-X anticipates drilling the Burkett 5-34HOR well in two stages. First, the company plans to drill a vertical hole to the top of the target formation and then core approximately 60 feet of the formation. Once this first stage has been completed, the company intends to plug back the vertical section of the well and drill the horizontal leg. The information gained from the analysis of the core and well logging is expected to assist the Ccmpany in designing the most efficient completion method for the well.
More information about the Vail Oil Project and Strata-X's portfolio of projects can be found on the company's website at www.strata-x.com.
Strata-X is a Denver-based company and is engaged in the business of oil and gas exploration and development with a variety of exploration opportunities in North Dakota, California, Colorado, Texas, Illinois and Western Australia and production and development opportunities in California.
Repsol will still hold a 51% stake in the block after the deal.
Chevron said on Dec. 24 it expects Saudi-Kuwaiti Neutral Zone's Wafra oilfield to return to full production within 12 months.
The EIA also projected U.S. gas consumption would rise to an all-time high of 84.51 Bcf/d in 2019 from a record 82.07 Bcf/d a year ago.