Ron Prefontaine Chairman ronstratax.com www.stratax.com TSX.V: SXE ASX: SXA An Emerging Illinois Basin Oil Producer November 2014
Strata-Xs Illinois Basin Recent success of high margin oil High margin light sweet crude located in the heartland of the USA where success = immediate oil sales at much higher margins than shale oil thereby offering a hedge against oil…
Near term production target of 320 to 620 BOPD net New improved completion method, with double the lateral length and stimulation stages, is expected to achieve earlier and higher oil rates than the 310 BOPD oil flow reached in the…
Strata-Xs share price overcorrects while key project performs Commercial oil flow rates reached in proof of concept well 350 Install higher capacity pump 300 35 250 30 200 CPS BOPD Burkett 5-34 150 25 100 50 20 0…
Relative visual comparison of various oil sales margins Saudis discounting…
Illinois Basin Oil Illinois Basin, Illinois: Shallow light oil in the heartland of the USA 7
Why is Strata-X focusing on the Illinois Basin A lost treasure with high margin oil when compared to low margin shale oil In USA heartland - markets, services, pipelines, low costs Flat, easy access, mostly farm land Significant…
Strata-X Illinois project is within and surrounded by giant oil fields 1.5 billion barrels of oil produced within 32 km radius of Strata-X projects(1) Multiple oil zone targets between 750m and 1500m 100% of 67,000 net acres…
Burkett Oil Field - 1,300 square kilometer Lingle oil accumulation 40 mile step out Not to scale Large oil accumulation in Lingle Fm 100 wells outline 1 billion OOIP, 338 MM bbls OOIP net to Strata-X acreage First development well:…
Burkett Oil Fields proof of concept reached 300 BOPD First completion method (red) exceeded commercial rates but not optimal; Development wells (green) using new completion method expected to do much better Oil Source Rock Upper…
Burkett Oil Field New forecasts indicate have high margins of 45/bbl at 80 oil price Chapman Petroleum Engineers Ltd forecasted well economics for Devonian Lingle development wells (1): (Forecasted Values prior to latest results)…
Illinois Basin Production History mostly shallow vertical wells Illinois Basin - Production vs. Crude (Bbl) Diesel for WW2 Illinois Basin market and Cars technology driven booms: Oil Cartel 1905 to 1915 - Cars Cars 1937 to…
Illinois vertical wells - testing multiple bypassed light oil pay zones Over 10 zones produce light oil More than 1.5 billion barrels in adjacent giant oil fields(1) Portion of Strata-X acreage located on the Giant Clay City…
Illinois Old Completion Practices Nitroglycerin fracs Early oil reservoir enhancement Many early wells were drilled to first oil zone and open hole completed To enhance the reservoir, nitroglycerin was poured in the hole, detonated…
Strata-X Vertical Program over 65 locations identified so far Areas of nitro fracs offer Original zones tested bypassed oil opportunity The effects of old nitro fracs were limited Resulting in a large amount of unproduced oil…
Strata-X Vertical Program Blue Spruce Area Blue Spruce Area Primary Target - Aux Vases Fm. Several wells with good IPs in area Several Nitro Wells in area Offer low risk potential 9 Potential well locations Additional 3…
Strata-X Vertical Program Douglas Fir Area Douglas Fir Area Primary Target - Aux Vases Fm. Several wells with good IPs in area Several Nitro Wells in area Offer low risk potential 12 Potential well locations Additional 7…
Strata-X Vertical Program Prospective Resources Type Curve Prospective Resources Type BOPM Well (1) EUR 50,000 bbls Peak production rate of 40 BOPD Potential for comingled zones to increase base levels (1)…
Illinois Vertical Oil Projects 65 locations, 4 month payouts, 50/bbl margins Chapman Petroleum Engineers Ltd forecasted well economics for Mississippian vertical wells are as follows(1): (Forecasted Values) Drilling and Completion…
Near Term Capex/Timetable with projected outcomes The outcomes assume vertical wells average 40 BOPD/new horizontal 300 BOPD IP and 60% success rate in low risk verticals Amounts are in USD (000) Dec14 Jan15 Feb15 Mar15 Apr15 May15…
Illinois Oil Summary of the Opportunity 100% of 67,000 net…
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