Strata-X Energy's (V.SXE) prospective Sleeping Giant Project awakes on first test

Stockhouse Editorial
0 Comments| June 19, 2014


Vancouver-based Strata-X Energy (TSX:V.SXE, Stock Forum) announced today that it had advanced its intentions at the Sleeping Giant project with today's announcement that the company had commenced operations on the vertical Rohweder #1-11 well located in Emmons County, North Dakota.

 

According to the news release, final location work for Rohweder #1-11, the company's first appraisal well at Sleeping Giant final, is being wrapped up with rig mobilization expected to begin on or around June 20, 2014.

 

Sleeping Giant project, operated by the company, consists of 120,000 mostly contiguous net acres with targets focused on biogenic natural gas from the prolific Upper Cretaceous Niobrara formation in the Williston Basin, North Dakota.

 

There is a history to Niobrara Formation as the significant petroleum system has produced over 1 TCF of natural gas from shallow accumulations including the project's geologic analogue, the Beecher Island field in the Denver-Julesburg Basin.

 

It is important to note that Beecher Island field, a past producer of over 101 Bcf of natural gas, is anticipated to finally produce 157 Bcf within an area spanning an estimated 32 square miles and Sleeping Giant is expected to yield similar economic resources per well due to its geologic condition similarities. Not too shabby.

 

To date there has been relatively little drilling done at Sleeping Giant with most of the wells focusing the deeper Cretaceous and Paleozoic targets. The Rohweder #1-11 well will test the Beaver Creek Prospect structure, just one of the 26 prospects currently identified at Sleeping Giant.

 

Drilling and casing operations at the well will be completed by early next week, and information gathered will be used to design and optimize a completion stimulation of the well.

 

Rohweder #1-11 is only one of four permits granted to the company by the North Dakota Industrial Commission, the other three Sleeping Giant permits include Aberle #-31 and Just #1-24 wells, located in McIntosh County, and the Hoff #1-32 well located in Emmons County.

 

Strata-X was in the news recently when the company hired Dr. Ira Pasternack as VP of Exploration a little over a week ago.

 

Shares gained 8.33% on the news to $0.325 per share.

 

Currently there are 139.8m outstanding shares with a market cap of $45.4 million.

FULL DISCLOSURE: Strata-X Energy is a Stockhouse Publishing client.



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