Stratex Oil & Gas Holdings Inc (STTX)

[BigfootSlapper]

Market Cap Market Cap
982,719
05/04/2022

Outstanding Shares
129,305,071
04/21/2022

Restricted
61,381,038
04/21/2022

Unrestricted
67,924,033
04/21/2022

Held at DTC
44,566,765
04/21/2022

[BigfootSlapper]

Institutional owner 2-11-2022

https://fintel.io/sos/us/sttx

[BigfootSlapper]

No communication from company in over 6 years.

[BigfootSlapper]

Continuing to add, came out of delinquent status in 2022. Finacial's are a mess, defiantly a lotto add.

https://opencorporates.com/companies/us_co/19891001421

[BigfootSlapper]

Started small position here as lotto play.

[Dream]

CEO https://www.linkedin.com/in/josephjmattia

[cdnboy]

Wow lfg

[jchords]

Mover

[jchords]

Silent mover

[jchords]

Nice action today

[donut]

when is somebody going to do something with this shell

[DAP56]

I saw some movement in this stock today, what's going on, operationally? The website is no longer hosted (down)....

[m0n]

Reinstatement or curing delinquency

I saw curing delinquency not reinstatement

[Imarket13]

Is that link right.

[elite6_0]

STTX Reinstatement Filed today

https://www.sos.state.co.us/biz/ViewImage.do?masterFileId=19891001421&fileId=20201942383

[andre1234]

Interesting. Bid at .003 for 236,400 shares. Why?

[Sun7]

Choctaw,
Do you have any update on STTX progress in Utah?
In the meantime the oil prices have recovered.
Do you think they will restart previous planned activities?
Are they still pumping the Morani well?
Thanks!

[smithrines]

we have a pulse!

[Zalmy]

Anyone home? What's going on here?

[donut]

DEAD !! R.I.P. ?

[Zalmy]

Or maybe end of year selling for tax loss

[Zalmy]

I guess they're diluting

[Zalmy]

Why the volume?

[choctaw 02]

1) we own 3% of this well
2) oil prices are down

[Zalmy]

Then why are we under a penny?

[choctaw 02]

Moroni 11M-1107 Well Production
Go To Link
http://oilgas.ogm.utah.gov/Data_Center/LiveData_Search/prod_lookup.htm
Put In API Well Number:
4303950005

[Zalmy]

What the hell is going on here? I owned this last year at .20.

[Sun7]

Choctaw,
Thanks for your insight. I believe the cng export starts by the end of the year.

[choctaw 02]

Sun7,
No idea what is going on in Utah. I presume we are still in the well clean-up phase and we are waiting on that for news on well production rate.
I think this is a buying opportunity based on Eagle Ford, Bakken and Colorado holdings. At some point oil and gas prices will recover some. Imports from Canada are slowing the oil price recovery. I don't know exactly when but when Compressed Natural Gas Exports kick in it is going to spike natural gas prices.

[Sun7]

Choctaw,
Do you have any update on STTX progress in Utah? The share price has taken a plunge over the last months. What's your take on it? Buying opportunity?
Thanks!

[Sun7]

Do you have any recent news on the Matthews well in the San Miguel formation and/or the joint-venture with Whiting in Utah?

The price p/s is down a lot, probably due to the low oil price.

[PlatypusRx]

We are hearing bullish rumors about the new Matthews well in the San Miguel formation, drilled by Quadrant LLC -- very substantial production numbers. To earn it's 50% interest, Quadrant was obligated, under a deal announced in April 2014, to establish production by June 15. Apparently, that part is done and STTX is acquiring additional acreage, possibly in collaboration with another public company, Eagleford Energy. The following comes from the STTX website:

"...the Zavala County Lease covers and includes the Surface-San Miguel Interval underlying such lands, which we call the Development Area. At such point in time, Stratex and Eagleford Zavala will each hold a 25% working interest in the Development Area. With respect to seven of the eight Phase I Wells, Stratex has the right to receive 16.66% of the revenues before Payout and 25.0% of the revenues after Payout. Management believes that there are up to 42 horizontal drilling locations in the Eagle Ford formation alone as well as 14 horizontal locations in the Austin Chalk and 32 horizontal locations in the Buda, with significant additional inventory available from the San Miguel formation locations."

[PlatypusRx]

Looks positive, from where I sit. STTX sheds a salary, claws back stock. Gaines wasn't adding much: he and Funk both have investment banking backgrounds. Gaines' tenure as Richfield's chair was marred by the abject failure of management to establish a retail following (the idiots went public without an IPO, forheavensake!) The switch also offers the company the chance to make a statement with the appointment of its next chair, who ideally will be an oil man. STTX's UT properties are tragically undervalued, but that should change next month, as Whiting Petroleum posts production numbers for the Moroni 11M well.

The rumor is that Whiting will pump out the 100K+ bbls of drilling fluid leftover from fracking operations at a rate of 3,000 bfpd. In its recent filing, Whiting indicated that one third of the fluid production on March 4 consisted of oil. If that ratio holds up during the jet pump phase, now just getting underway, the world will take notice. Wolverine's Kings Meadow Ranch well had production of less than 1,000 bopd, yet merited a feature in Oil an Gas Journal. Whiting's discovery in Moroni is potentially much more important, because the Tununk shale is a resource play covering hundreds of square miles, whereas the Navajo sandstone in Covenant is basically a one square mile trap.

When it dawns on the industry what Whiting has done (discoveries of this magnitude are exceedingly rare), all eyes are going to be on Whiting's neighbors. STTX isn't going to develop its UT acreage on its own;it will need JV partners with know-how and deep pockets. This is where bringing in an established oil man with extensive industry contacts should help. It's a space we should all be watching.

[RickKayne]

Any thoughts on Gaines departure?


Effective April 28, 2015, the Board of Directors of Stratex Oil & Gas Holdings, Inc. (the “Company”), accepted the resignation of Alan D. Gaines, our Executive Chairman of the Board and Board Member. Mr. Gaines resigned in order to pursue other business opportunities and we wish him well in those endeavors. A copy of the Separation Agreement between the Company and Mr. Gaines is attached as Exhibit 10.6.

[Sun7]

Thanks as well for this and your previous useful info. Since STTX is still not disclosing anything yet, it would be hard to know otherwise about these promising developments.

[choctaw 02]

Platypus,
Thanks for the update. Sounds like good news. Are there any restrictions on how much gas we can flare or oil or water we can produce? Thanks again.

[PlatypusRx]

At the hearing yesterday, Whiting was granted permission to produce the well for 270 days. We learned that the well has been opened back up after being shut in for a couple of weeks. They will have to let the pressure bleed off for a day or two before they can install the jet pump.

Jet pumps can handle huge flows -- up to 20,000 bbls per day -- are capable of moving large quantities of sand and other solids, and are relatively impervious to acid. An added advantage is that, although jet pumps are big energy hogs, they can be powered by well gas -- which is what Whiting appears to be planning here. You can read more about jet pumps at: http://www.flowfastjetpumps.com/documents/Rethink-ArtflLift_whitepaper.pdf

Sidebar discussions with the hearing officers point to some real excitement about the implications of the Moroni discovery.

[AJO19]

That's a lot of volume today

[PlatypusRx]

The 10-k is a portrait of a little company that has made some big bets that had better pay off, and pay off soon. If this makes some investors jittery, well, that is exactly what they should be. Companies with balance sheets like STTX aren't producers, they are high-risk/high-return exploration plays. There are lots of junior-juniors that have production to sustain them from one quarter to the next. Not STTX. Rather, STTX is all in on at least two rank wildcats, in areas with no other producing wells for more than 20 miles in any direction. So the real question is: how are these projects doing? On this, STTX management has been appropriately tight-lipped. But that should change.

As some of us have been documenting on these pages, at least one of those wildcats -- the joint venture, in which Whiting Petroleum has drilled the Moroni 11M test well -- is showing concrete signs of success. STTX should receive some value for its participation in this 31 sq. mile project. Five percent of 31 is 1.56 sq. miles, suggesting a net of about 3 Moroni style wells, whatever those turn out to be. But news on this front will be slow in coming, because the process of cleaning up the test well has only begun. The recent filing suggests that, even if production is ramped up to 3,000 bfpd, it could take 2 months to pull out the drilling fluids used in fracking. Only then will we know what Moroni 11M is capable of. The recent filing by Whiting is pretty encouraging, but hardly definitive.

Even assuming that the Moroni 11M is a big success, there is a question as to whether any of the STTX 100% working interest acreage (of which the company reportedly controls about 40 sq. mi.) sits above the Tununk shale. If the easternmost edge of the Tununk goes all the way to Fountain Green, then STTX could have dozens of locations locked up. It's not clear from the 2-D seismic that I've seen that it does. The best case is a company that, in three years time, will have a market cap in the hundreds of millions, if not billions, of dollars. The worst case is that time will run out, creditors will take over and lease options will evaporate. The 10-k is that dismal.

Then there is the Texas wildcat that, so far, no one on these pages has gossiped about. My sources say STTX has a 25% carried interest in 6 wells in this play, and that the test well is going into production. We'll know soon enough whether this rumor pans out. Because if it's true, there should be an announcement soon.

[AJO19]

What happened today? Is this reaction to 10-k?

[choctaw 02]

Nothing unexpected.

[AJO19]

What does everyone make of the 10-k

[Drill Baby]

Yeah, they are delineating the reservoir with wide spacing - in fill wells later if successful. I have drilled and fractured many wells. The fracture creates the permeability, so no worry. The main thing is thickness and oil saturation.

I have done little to no work evaluating this just reading the comments. Busy drilling my own wells.

[Oilcard]

You may want to reconsider your estimate. They are drilling on 4 wells per mile spacing and drilling laterals 4900 feet. I would think that with the excessive amount of pay here it is yet to be understood how they will exploit the reserve potential. I would think more like 2 million bbls on the low side. It calculates out much higher but we are not sure of the perm factor. We have Height, Porosity and pressure. If we have a solid perm model based on the secondary environment near the thrust, we'll have some good modeling we can work with.

[Oilcard]

I am not sure what value it would be because I am not sure of their cash position, however it seems to me their real value is in honest speculation, and much higher than 6 million, maybe 10 times that number in a 50 dollar environment. In a proven area reserves would be valued near 12 bbl. The trick is getting someone to pay you for it or leveraging public perception to find you money to drill. If you ask me where the b number is, it is to the west in the wedge they talk about in their presentation. That just makes sense, geological and engineering sense. The former management seemed like they knew what was going on. Sometimes it is best to be silent but it may be because they don't know what to say. Communication with the public is important here Rx. If not, they will lose our interest because we cannot trust management that will not openly discuss hard data that is already in the public domain. What's your take on their silence?

[Drill Baby]

Rough guess 150,000 barrels per well EUR with 500 ft spacing between producers.

They may be better off selling to a big oil company. It will take a lot of capital and time to develop.

[Oilcard]

The Moruni #1 logs published on the UDOGM site indicate typical to higher than normal oil shale porosity but there is over 700 feet of it! The one section that Richfield highlighted in their presentation using the anisotropic log is, without comparison, the most unusual and prolific i have ever seen. This is likely caused by excessive faulting caused by the profundity of the gunnison thrust that is present to the west. From what I can see, Whiting did not find this same section in their #11 since they were able to drill it and set pipe whereas the #1 was not able to because of collapsing hole. I am not sure why they were unable to get the plugs out in the sections they fracked. It doesn't make sense that they just decided to leave them in the hole. Perhaps it is from shearing or possible too high of pressure, as in a few cases in the Eagle Ford.

[choctaw 02]

Gentlemen,
I did not see Natural Gas Absorption Technology mentioned in the filing. They mentioned several including "Gas To Wire" which I think is great long term for stranded gas with no pipeline. I own a company that does exactly this ( http://ener-core.com/ ) stock symbol ENCR. Evidently there are some problems getting a contract with the local power company.

In the interim I would like to suggest that Whiting sell some of this high BTU gas rather than flaring it using this companies Natural Gas Absorption Technology. Also it is lower pressure than the 3000 psi mentioned in the filing.
http://energtek.com/

[PlatypusRx]

@Oilcard - Your guesstimate of 30-40MM bbls recoverable per square mile would indicate STTX is undervalued! Let's see: if STTX has 5% of 20K acres in the Whiting JV, that's about 1.56 square miles net; times,30MM bbls/sq. mi, equals about 46MM bbls recoverable, net; times $58.00/bbl, that's $2.7 billion with a "b". Undiscounted, of course. Can anybody tell me what the present value might be, given normal decline curves and such? Whatever it is, it has to be more than the STTX market cap.

[Drill Baby]

Permeability can be estimated using Darcy's law. You need to solve for K and use the flowing rate.

http://wiki.aapg.org/Fluid_flow_fundamentals

What is the net sand thickness and Length?