Prospective Resource Increased 240% to 3.3 TCF
April 04 2018 - 8:30AM
Highlights
The directors and management of Strata-X Energy Ltd. (“Strata-X” or
the “Company”) (TSX-V:SXE) (ASX:SXA) are pleased to announce that
the Company has increased the Prospective Gas Resources in the
Serowe CSG Project, located within the Botswana CSG fairway, to 3.3
TCF. The increase reflects the additional permits the Company
acquired earlier this year and after acquiring a 100% working
interest in the original permits. The Serowe CSG Project now spans
680,000 acres and is 100% owned and operated by Strata-X.
The new acreage lies adjacent to a bitumen highway between
Serowe, the regional capital, and Orapa, the site of the world’s
largest diamond mine and a duel fuel (gas/diesel) electricity
generation facility currently using 100% diesel which can be
substituted with the Company’s gas reserves when established.
ADVISERS AND
CERTIFIERS
MHA Petroleum Consultants, Denver, Colorado,
recognized experts and CSG certifiers, have certified a mean
recoverable Prospective Resource of 3,343 BCF (3.34TCF) net to
Strata-X for the Serowe CSG Project. (1) The Resource
certified is as follows:
Classification |
Independent Qualified Reserves Auditor |
Effective Date of Estimate |
Location of Resources |
Estimated Prospective Resource Gas Volumes Net to
Strata-X Interest (Bcf) |
|
|
|
|
Low |
Best |
High |
Prospective Resources |
MHA |
26 Mar 2018 |
Botswana |
1,672 |
3,343 |
5,016 |
GAS MARKETS
The Botswana economy is heavily dependent on its
large mining industry that consumes approximately 34% of the power
produced in the country. Importantly, with no current domestic gas
production and insufficient local electricity generation, the
country relies heavily on expensive imported diesel and
electricity. Further, there are expanding domestic electricity,
manufacturing, and raw materials industries that offer immediate
and long-term gas markets for Strata-X, once sufficient gas
reserves are established.
ENVIRONMENTAL APPROVALS
PROGRESSING
The Company has selected EcoSurv, a Botswana
environmental firm, to seek the necessary environmental approvals
required for the proposed appraisal program. Work is ongoing
including meeting with localstake holders in the permit area and is
on track for approvals to be received in the third quarter of
2018.
APPRAISAL PROGRAM
The appraisal program is designed to prove
commercial completion methods and convert resources to reserves. To
achieve this, the Company plans to apply the latest completion and
production methods designed to yield commercial gas flow rates.
With 100% ownership in the project, the Company now has the option
to consider seeking alternative funding.
Ron Prefontaine, Chairman of the Board, stated
that, “With Strata-X having 100% equity in its expanded Botswana
CSG portfolio, we now control over 3.3TCF of prospective resources
surrounded by a large potential growth gas markets. This fulfils
our strategy to put the Company in a strong position to seek
alternative sources of funding to appraise and develop these
resources. This will be carried out in conjunction with the
environmental approvals process over the coming months.”
About Strata-XStrata-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.
For further information please contact:
Tim Hoops (USA)President+1 855-463-2400
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. |
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.
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