Strata-X Energy Ltd. (TSXV:SXE) announced the proven plus probable oil reserves at its Blue Spruce project are 1.282 million barrels of oil with a net present value of US$53.4 million.
Strata-X Energy Ltd. (TSXV:SXE) announced the proven plus probable oil reserves at its Blue Spruce project showed 1.282 million barrels of oil with a net present value of US$53.4 million. The company also announced that the first well in the Blue Spruce oil field has been successfully put into production.
As quoted in the press release:
Strata-X currently has the rights to 720 net acres of the Blue Spruce project where it has identified 19 oil development locations. In a reserves report dated April 1, 2015, Chapman calculated a before tax Net Present Value (BTNPV discount 10 percent) of the Blue Spruce project to the Company of US$53.4 million (After Tax NPV of US$38.3 million, unrisked.)
To increase oil recovery and oil flow rates, the Blue Spruce project will require water pressure maintenance involving waterflooding of the Aux Vases formation. It is estimated that the waterflood development will extract approximately 40 percent of the Petroleum Initially In Place (“PIIP” unrisked) resulting in a projected recovery of 1.28 million barrels of oil net to Strata-X. The Company’s first well in the oil field, Blue Spruce #1, has been successfully put on production and is expected to reach production rates of 40 barrels of oil per day once reservoir pressure has been restored in the field.
Tim Hoops, president of Strata-X Energy, commented:
We are very excited about the results of the first well in our vertical bypassed oil field drilling program. In addition to the Blue Spruce oil field project, we have so far identified another eight analog projects where we have interpreted similar bypassed oil pay in historical wells. The Company has secured leases for most of these opportunities and is taking steps to ready these projects for drilling later this year.