Management and employees of Strata-X Energy (TSX:V.SXE, Stock Forum) were all smiles today as the company announced it had completed drilling operations on the Rohweder #1-11 well at its 120K net acre Sleeping Giant gas project after noting gas shows in the Niobrara formation upon penetration of the regional hydrocarbon seal.
According to the news release, Rohweder #1-11, Strata-X's first proof of concept well at the project, encountered gas shows over an 80 foot interval of the targeted Niobrara formation, with said shows peaking at approximately 300 units over a background of 25 units.
Drilling at the Niobrara formation also uncovered sections where oil fluorescence and oil cut were observed.
The company is currently logging the well in preparation for setting casting to total depth when the well will be shut-in to await completion stimulation, allowing Strata-X to design an optimal method utilizing data obtained during the drilling of the well.
Three additional wells are anticipated to be drilled on other large prospects mapped over the Sleeping Giant project later this year following the successful production testing of Rohweder #1-11.
Sleeping Giant is expected to yield similar economic resources as the Beecher Island Gas Field (640,000 Mcf(2) per well average within 32 square miles) due to the fact that Sleeping Giant possesses similar geologic conditions.
Strata-X was in the news recently when the company announced the arrangement of a private placement worth up to AUD$1.8 million three days ago.
Shares were up 1.59% on the news to $0.32 per share.
Currently there are 139.8m outstanding shares with a market cap of $44.7 million.
FULL DISCLOSURE: Strata-X Energy is a Stockhouse Publishing client.