Stratex Oil & Gas Holdings Inc. detailed an update on current operations across the U.S., the company said June 29.
On August 6, 2014, work began on the Moroni 11M-1107 well in central Utah, which Whiting Oil & Gas Corp. (WLL) operating.
Moroni 11M was placed on production on Feb. 14, and has been completed. Surface production equipment is in place and flowback continues. Stabilized hydrocarbon production rates are not yet known.
Stratex entered a joint development agreement with Itasca Energy LLC on March 13to drill six wells in the Buda Limestone Formation on a 19,791 acre leasehold in Zavala County, Texas.
The company owns a 94.85% beneficial working interest in the leasehold. Itasca could earn a 77.50% interest in all six wells, while Stratex held a 21.34% interest.
Stratex separately retained its 94.85% working interest in two drilled wells not yet completed.
The Matthews #2502 well was spudded on March 16 and reached a 5,200 foot horizontal and total depth in the Buda on April 8.
Itasca is establishing production and installing surface production equipment. Itasca can drill a second well if Matthews is commercial and if all drilling and completions costs are paid .
The second well must be spudded within 120 days after April 8. These requirements must be met for each subsequent well. Wells not spudded in the required time period will accrue interest.
Stratex also said it will sell Eureka Petroleum Corp. half of its retained working interest under the joint development agreement with Itasca for $3.3 million plus carrying costs for two excluded wells. Eureka paid Stratex a $500,000 deposit and $25,000 in re-entry and testing costs for the wells.
An additional non-refundable deposit of $600,000 will be paid before June 30, and the remaining $2.2 million of the purchase price will be paid in July.
Completion operations on BPH Matthews #1 and Matthew #2501 will begin in July and later this summer, respectively. BPH was originally drilled in the Pearsall Formation. Matthew #2501 was previously drilled in the San Miguel Formation.
Stratex agreed to sell oil and gas leases and equipment in Russell County, Kan., in May to three producers for $360,000.
As of June 9 Stratex received $285,000 for two initial closings. The remaining $75,000 of the purchase price will be given to Stratex or third party vendors at the final closing scheduled for July 7.
Stratex still owns and operates 807 gross acres (772 net acres) in Kansas with seven producing wells, five shut-in wells and three saltwater disposal wells.
Stratex Oil & Gas Holdings Inc. is based in Salt Lake City.
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