Strata-X Energy has received a permit to drill the Kuhlig #1 well, the second well in the Company's Lingle Oil Project. The Kuhlig #1 is a 12 km step-out of the first completed Lingle horizontal well, Burkett 5-34, where peak production rates of 300 barrels of oil per day were achieved.

The Burkett 5-34 was a "Proof of Concept" well that successfully proved the Lingle can be drilled and completed horizontally and is capable of commercial oil production. Although this first horizontal test accomplished many of the pre-drill targets, Strata-X expects even better results from the next horizontal well, which will be designed with twice the horizontal leg length and an improved completion method compared to the Burkett 5-34 well.

Kuhlig #1 is a low cost vertical well that will core and pressure test the Lingle to acquire important reservoir data required to design the proposed Raccoon Creek #1 horizontal well. A core will be taken from the bottom of the New Albany through the primary reservoir of the Lingle formation. Confirmation of oil saturation, reservoir thickness and porosity will be key data obtained. The pressure test will be instrumental in the design of future horizontal completion methods as Strata-X fine-tunes the approach to optimizing commercial oil production.

Tags: Strata-X Energy Ltd.