Stratex Oil & Gas Holdings Inc (STTX)

[Drill Baby]

I like WRES as a value play. It's currently trading at $0.5 of book value and it has really good oil/gas hedges.

The book value is over $3.50 per share, and it's trading at ~$1.71 per share.

Hopefully STTX can make it through these low oil prices. WRES is very strong financially.

[Drill Baby]

Icahn uses Gaines so he must be good.

STTX can't afford me. An executive level reservoir development asset manager costs ~$500k- $1million per year.

[Sun7]

They should hire you as a consultant!
The oil price seems to stabilize a bit. Hopefully the strengthening of the US economy will help.
Do you think Alan Gaines has a plan to somehow benefit from the current low oil price by making new deals? He has been around a long time and has experienced these downturns before.
What the other person mentioned, the JV's in Utah, sounds promising.

[Drill Baby]

Titan will actually work a deal where it's free for a percent of the profits.

Most of these small OTC energy companies are run by lawyers and business men not engineers with financial experience. In my experience, all the truly successful oil companies were run by technical people figuring out how to squeeze more oil out at a low cost.

STTX should give Titan a call. Huge opportunities available in the oil patch right now. True wealth is always created during the downside.

[Drill Baby]

Interesting thanks.

Not that many fractured water wet reservoirs in California - oil clings to the pore throat and water is in the middle - low waterflood oil recovery. Clay swelling is typical - can use KCL fluid to help prevent it.

There are chemicals to alter the rock wetability, but not cheap. Also, low pressure is tough in a fractured network - hard to waterflood. Plenty of challenges, but maybe a bigger company can help develop.

I worked on a field in Wyoming that was low pressure water wet. Plenty of stories....

They should work with Titan and see if all the reservoir properties fit a microbes application:

http://www.titanoilrecovery.com

It's a pretty amazing application where the microbes attack the residual oil (attached to the rock) and it works in some fields.

[PlatypusRx]

Another STTX joint venture is nearing culmination about 20 miles northeast of the Moroni test drill. Investors should take note because, although the well carries demonstrated technical risk, positive results could prove out significant reserves.

Richfield, which STTX merged with earlier this month, has been in and out the so-called Liberty #1 well, in Nephi, UT, at least four times since 2010. The operators now are in the process of drilling their third entry into the Twin Creek. Despite some promising signs, the earlier efforts came to naught due to the chemistry of the rock. Yet analyses of core samples indicate something extraordinary: Not only is the pay zone highly hydrocarbon saturated, it is unusually fractured. Permeability is an unheard of 36%. So why, then, is Liberty #1 not producing several thousand bopd, as one might expect? One answer is that the reservoir is “water wet” (Google it), meaning, simply, it reacts to water-based drilling mud by swelling up and closing down. Most recently, in a procedure conducted earlier this year, the fracture system became clogged with paraffin. In the current procedure, the operators are treating the drilling mud with chemicals specially designed to prevent such interaction. (More on such treatments can be found on the website of ARC Fluid Technologies.) A related technical challenge may arise from the fact that the pay zone is relatively shallow; hence, reservoir pressures may not be enough to overcome any clogging.

With a WI of about 10%, STTX has only a limited upside in this test well. And the total acreage in hand is relatively small – less than 500 acres. Nevertheless, sources say that analyses performed by Halliburton and others indicate that potential reserves, even on this tiny footprint, might total 100MM+ bbls, and that the company owns options to acquire significant adjacent acreage in the event the fifth time is the charm.

[PlatypusRx]

STTX needs to make an announcement regarding material developments in Moroni, UT. By virtue of its recent merger with Richfield Oil and Gas, STTX is a minority JV partner with fracking giant Whiting Petroleum in a series of 13K' deep wells on the westernmost portion of the Mancos Shale, abutting the Gunnison Thrust. Their joint acreage encompasses 20K acres. STTX, I believe, has only about a 5% WI in this AOI. But both companies have been quietly enhancing their positions in and around Moroni, and STTX net acreage now totals about 20K acres. Whiting came into the deal late last year, when it acquired 162K acres from Halcon Resources. In September, they spudded a test well. They reached total depth in late November, and in December drilled a 1 mi. long horizontal. Word of mouth is that Whiting has a monster on its hands. The Mancos in this section is said to be 2,500’ thick and is essentially pre-fracked by the same geological forces that created the Overthrust. As Whiting neared TD, it reportedly needed a gasbuster to deal with constant oil flows. If the rumors are correct, and the test well is indeed equivalent to the best of the Bakken, STTX needs to announce something soon, lest investors like Wally Balls hit the panic button prematurely.

[Mao7390]

Hopefully I can dump what I bought at .15

[Wally Balls]

How long can STTX hang on?

[Wally Balls]

Oil Target: $58.34. Looks to be support there. STTX hits .05. Ouch.

[Mao7390]

I believe bottom has set in at .06

[Wally Balls]

Shit Gaines Can't Out Manage Oil Prices. Buh bye money invested in this dumpy stock.

[maverick one]

I'm an old salt out at sea awaiting the very bottom of davey jones lockeroom yee- on the distant horizon thar she blows I'll sink her to the bottom of the mighty pitching frothy sea. Row my boat to me muscles ache for I'll set me hook with a mighty shake. Thar she goes whistling over me head as she hits the bottom of me bloody deck. I'm an old salt at sea still collecting from the bottom of the sea.

[Drill Baby]

I only know what's been announced about the merger. In this price environment, it's likely a good thing. Hopefully STTX will emerge a stronger company when the price does go up.

The drilling program is likely marginal at $60/bbl and uneconomic below $50/bbl. Most companies are laying down rigs and even giving back leased rigs and paying penalties. Good time to renegotiate with venders and royalty owners. Getting new money from banks will not likely happen now until oil prices exceed $75/BO.

The game has changed - It's all about surviving and being extremely resourceful until oil price eventually go up.

[Sun7]

Wat do you make of the news release on the merger last week? Seems they have plenty of opportunities on the horizon. No word on the low oil price though...

[Drill Baby]

Reworded:

Right now my two favorite funds are DWTI (hedge my oil stocks) and China ETF. JGPK (symbol) an undervalued ecommerce company is my favorite stock.

I am hoping the floor oil price is $60/bbl, but we could see $50 or $40. China is expanding with the oil price drop extra income windfall - will lead to more demand and higher prices eventually- when? I have no idea.

Having been through 1985-86, 1998-99, and 2008. This time I am benefitting from the drop. For me it's like the movie ground hog day.

I would be careful holding any oil company right now that has a high level of debt to equity.

[Drill Baby]

Actual more opportunities on the downside - renegotiate with venders, royalty owner, property tax, acquisitions, upgrade projects, get rid of slackers, etc.. It's good execution on the downside that makes people really rich. Especially attractive to companies with cash and low debt levels.

[Drill Baby]

Right now my two favorite holdings are DWTI (hedge my oil stocks), JGPK (highly undervalued ecommerce company), and China ETF.

I am hoping the floor oil price is $60/bbl, but we could see $50 or $40. China is expanding with the oil price drop extra income windfall - will lead to more demand and higher prices eventually- when? I have no idea.

Having been through 1985-86, 1998-99, and 2008. This time I am benefitting from the drop. For me it's like the movie ground hog day.

I would be careful holding any oil company right now that has a high level of debt to equity.

[Mao7390]

Did you sell all of your sttx

[Mao7390]

Chart looks bad if you ask me

[Mao7390]

What's the deal with this

[Wally Balls]

SIX TO NOON

STRATEX OIL & GAS HOLDINGS, INC. PROVIDES UPDATE FOLLOWING ACQUISITION
OF RICHFIELD OIL & GAS COMPANY

FOR IMMEDIATE RELEASE

SALT LAKE CITY, UT (Marketwired) 12/3/14 – Stratex Oil & Gas Holdings, Inc. (OTCQB: STTX) ("Stratex" or the "Company") provided an update today with respect to the Company’s recent acquisition of Richfield Oil & Gas Company (“Richfield”). As previously announced, pursuant to an Agreement and Plan of Merger dated May 6, 2014 (as amended, the “Merger Agreement”), effective December 1, 2014, Richfield became a wholly-owned subsidiary of Stratex, and all outstanding shares of Richfield common stock are to be exchanged for an equal number of shares of the Company’s common stock. For further details on the Merger Agreement, please see the Company’s Current Report on Form 8-K, filed today with the Securities and Exchange Commission.

Commencing December 1, 2014, Stratex moved our headquarters to 175 S. Main, Suite 900, Salt Lake City, Utah 84111. Our phone number is [phone].

By combining the complimentary asset portfolios of Stratex and Richfield, the Company will benefit from drilling program optimization, the elimination of duplicative expenses from operating Richfield as a publicly reporting company, as well as economies of scale relative to field operations. The acquisition also greatly enhances Stratex’s overall acreage position to 109,982 gross acres (27,270 net acres), and expands our present Kansas footprint and adds enormous world class upside potential in a new core area in Utah. Stratex also plans to continue to develop its scalable acreage in south Texas.

Stratex is now well positioned to enhance our drilling program into 2015 and beyond. This drilling program will be heavily weighted towards lower risk and development cost primarily in Kansas and Texas. The Company will also continue participating in a new Utah shale play in order to ramp cash flow organically through the drillbit. Our portfolio of projects will be strictly IRR driven.

Stratex will also continue to focus on prospective acquisitions in proved producing basins, in order to augment and further accelerate growth, and optimize capital allocation. Stratex’s management strongly believes that the Company is well situated to participate in far greater upside potential in the form of a larger and better capitalized entity, with a much broader portfolio of projects, and greater access to capital in order to execute our strategy. Stratex’s management is confident that it can extract significant incremental value embedded within the Company’s high quality asset base.

Richfield’s independent reserve report dated April 4, 2013 which includes only its Kansas proved reserves, will augment Stratex’s reserves, with additional proved reserves PV10 totaling $28.9 million (1,869,000 BOE, of which oil represents 96%), as of December 31, 2013. Richfield’s proved and probable PV10 totaled $109.0 million as of December 31, 2013, thus highlighting the increased liquids-based upside of our combined Kansas properties. It is very important to note that no reserves attributable to our Utah or Texas properties were included in this reserve report. Stratex’s management strongly believes that near and longer term drilling in Texas, and especially Utah, could prove up vast and highly economic crude oil reserves.



Stratex recently commenced the drilling of an initial 4 well program with respect to our Joint Development Agreement (“JDA”) with Eagle Oil & Gas Co., in Ford County, Kansas. The scalable JDA covers approximately 35,000 gross acres. The first 2 wells are presently being completed and we expect the next 2 wells to be drilled by yearend 2014. We anticipate meaningful production and proved reserves will be attributable to our JDA with Eagle during calendar 2015.

Stratex now has a stronger balance sheet and significantly higher net book value, with which the Company intends to optimize and exploit our development programs in both Kansas and south Texas. Combined with more streamlined operating efficiencies, this should also enhance capital formation efforts.

Proforma production currently totals 164 gross BOE/D and 139 net BOE/D. Stratex is actively transitioning into a production based mode from a leasehold acquisition mode. The Company has accumulated a significant and highly prospective multi-zone acreage position, with a multi-year drilling inventory in south Texas, Kansas and Utah, and is now poised to commence active drilling in order to ramp organic production, mostly via lower risk recompletion, rework and new drilling opportunities in south Texas and Kansas.

Management is particularly excited about what we believe to be the “company making” potential of our two prospectively massive projects in Utah. We believe our highly proprietary acreage there represents an unusual opportunity, notably for a company of our present size, to participate in what could well be a world class emerging shale development play, as well as a world class conventional exploration project. Stratex intends to leverage its upside via the establishment of joint venture drilling relationships and AMIs in order to balance and optimize future capital expenditures.

In September 2014, the Company elected to participate in the drilling of a well designated as the Moroni 11M1102 Well in Sanpete County, Utah. The well is located within the Company's Independence Prospect. The Company currently owns a 3.0% WI in 20,000 acres in the Independence Project and in the Moroni 11M1102 Well. This well is operated by Whiting Oil & Gas Corporation, and is currently in the drilling stage.

Stratex’s new land position contained within the Company’s Utah HUOP Freedom Trend prospect covers the largest identified underlined structure in the Central Utah Overthrust play. Similar to the two massive discoveries in 2003 (Covenant Field) and 2008 (Providence Field) by the Wolverine Gas & Oil/Occidental Petroleum consortium, we believe our "on trend" properties have the potential for a world class discovery in three stacked oil charged Navajo sandstone formations. The Freedom Trend prospect is in the Mississippian oil migration pathway. It is important to note that the Covenant and Providence fields together likely constitute one of the largest series of conventional discoveries in the Lower 48 over the past 40 years.

Stephen Funk, CEO, stated, “We will now focus our combined efforts to concentrate on increasing near term production, notably from lower risk locations in Kansas and south Texas, and streamlining internal operating efficiencies. Management is particularly excited regarding what we feel is enormous upside potential in Utah.”

Alan Gaines, Chairman of Stratex, stated, "Stratex now has a stronger balance sheet and significantly higher net book value, with which the Company intends to optimize and fast forward development, as well as exploit our significant and strategic acreage position in both of our proprietary Utah plays. On a going forward basis, the acquisition should strengthen our capital formation efforts. The Board of Directors is committed to the enhancement of shareholders' value."

[Wally Balls]

Can't wait for tomorrow's announcement. I think I'm going to kick myself for not buying more at .08. Time will tell.

[GrundleHunter]

Now were talking!

[Wally Balls]

Go Gaines, go! With this company you're buying management. It appears they have enough cash on hand to survive the Saudi foolishness. Gaines + Drilling = $$$$

[GrundleHunter]

Not a bad finish here.

Hopefully we start seeing Gaines

[GrundleHunter]

Up we go.

So far $.08's seemed like a good load zone.

If oil prices start rising hopefully this follows.

Anyone have any thoughts on the merger?

This board is pretty dead.. lol

[syscat]

Oh yeah, sure! And a nice "gift" it was for STTX and ROIL holders. Real encouraging drop to .08 today. Just can't WAIT to see what's next.

[GrundleHunter]

Merger through. Buying Opp?

Stratex Oil & Gas Holdings, Inc. Completes Acquisition of Richfield Oil & Gas Company
4 hours 40 minutes ago - DJNF
Stratex Oil & Gas Holdings, Inc. Completes Acquisition of Richfield Oil & Gas Company
SALT LAKE CITY, UT--(Marketwired - December 01, 2014) - Stratex Oil & Gas Holdings, Inc. (OTCQB: STTX) ("Stratex" or the "Company") and Richfield Oil & Gas Company ("Richfield") today announced the successful completion of the previously announced merger of a wholly owned subsidiary of Stratex with and into Richfield. Richfield survived the merger and is now a wholly owned subsidiary of Stratex. The merger was approved by Richfield's stockholders at a special meeting held on November 24, 2014.

Effective with the opening of the market today, Richfield ceased to be a publicly traded company and its shares of common stock ceased to be quoted for trading on the OTCQX.

As a result of the merger, each share of Richfield common stock now represents the right to receive one share of Stratex common stock.

Stratex intends to make a further announcement with respect to the merger later this week.

Investor Relations Contact

Derek Gradwell

SVP Natural Resources

MZ Group North America

Phone: [phone]

Email: [e-mail]

Web: www.mzgroup.us

(MORE TO FOLLOW) Dow Jones Newswires

December 01, 2014 08:00 ET (13:00 GMT)

[Drill Baby]

Yes, on the positive side hopefully oil prices will go up in the short-term. However, on the down side, if oil prices stay low (let's say for over 6 months) I really doubt any of these small companies will survive - I wouldn't invest any money you can't afford to lose.

I was around in the oil patch in 1985-86, 1998-99, and 2008, so just giving advise based on my experience.

Just my $0.02

[Sun7]

Would it make sense to buy more shares for these low prices? A few months from now the oil price might be going up again ...

[Drill Baby]

Low oil price is a big risk to these small unhedged companies. In terms of drilling...I only know what is published - not much.

[Sun7]

Any idea how the company is currently doing?

[ATCrunch]

Damn only 900k in revenue and losing over 5 times that in earnings. This company takes a a lot to run. Millions in the hole. Has 9 million market cap but thats still 10x revenue. Im going to wait on this.

[donut]

Before Year End I Hope. So I can write the lose off.

[maverick one]

Great prices- I like how Gaines is keeping merge under wraps we'll know eventually.

[maverick one]

It's the Thrust baby

[nycguyjohnsmith]

Fair point

Except that Funk has been doing this for the past 5 years. Kelly is no longer a part of the company and has not been for 2 years or so, this info is dated. Alan Gaines did join the Company in the interim and that was the first thing that made many of us take notice, he joined, they have brought in thousands of acres of assets, announced the acquisition of ROIL, Richfield's production through their investment in its properties and raised $20mm over the last few months to make a go of it as a true oil and gas company. You need to be current on a Company before you bash it and btw, who bothers bashing 20cent companies, you can't short them without huge margin costs, they are not promotional and need to be pointed out, they seem to be quietly raising funds, putting a nice asset base together and steadily increasing production, what's not to like?

[Helter Skelter]

What word is missing here...

...in these two..."biographies"...from the ihub intro box? Yup, you guessed it...



...oil.

lOl...

Let's take a closer look...at this...sttx...sludge.

Thanks...

[Helter Skelter]

Is this the same funk as the ceo funk?

Looks like it...the...funky-funk-fink, lOl...comments? Thanks...

Stephen P. Funk (CRD 2224312) Fined $25,000, Barred from Securities Business in Connecticut for 5 Years in Connection With Promissory Note Sales

On January 29, 2003, the Banking Commissioner entered a Consent Order (Docket No. CF-2002-6277-S) against Stephen P. Funk of 196 Fern Avenue, Litchfield, Connecticut. The respondent had been the subject of a September 25, 2002 Order to Cease and Desist, Notice of Intent to Fine and Notice of Right to Hearing (Docket No. CF-2002-6277-S) alleging that, from at least January 1999 to June 2001, the respondent offered and sold unregistered non-exempt promissory notes of Wellesley Services, LLC to Connecticut investors in violation of Section 36b-16 of the Connecticut Uniform Securities Act; and that, in so doing, the respondent transacted business as an unregistered agent of the issuer in violation of Section 36b-6(a) of the Act. The action had also alleged that the respondent violated Section 36b-23 of the Act by making a false statement during the course of the department's investigation with respect to the respondent's involvement in the promissory note sales.

In entering the Consent Order, the Commissioner found that the respondent had violated Sections 36b-16 and 36b-6(a) of the Act but withdrew the department's allegation that the respondent had violated Section 36b-23 of the Act. The Consent Order fined the respondent $25,000 and barred him from acting as a broker-dealer, agent, investment adviser or investment adviser agent in Connecticut for five years. In addition, the Consent Order rendered the September 25, 2002 Order to Cease and Desist permanent.

[Helter Skelter]

What's up with this pos? Any, apparent, fraudulent, activities...surface...here, yet?

Thanks...

[maverick one]

ROIL mirroring PPS of STTX

[donut]

Care to elaborate?When this dog and poney show climbs over $1.50 again, then things will look better. This small gain is nothing to write home about. Hope Gaines does something soon.

[GrundleHunter]

up 5.6%..

Care to elaborate?

[donut]

This is not good!

[maverick one]

Looking upside IMO-

[futrcash]

Agree-

So does Utah-

futr

[maverick one]

Richfields Kansas play looks promising...

[futrcash]

Item 1.01 Entry into a Material Definitive Agreement.

On July 17, 2014, (i) Richfield Oil & Gas Company (“we” or “Richfield”), Stratex Oil & Gas Holdings Inc. (“Stratex”) and Richfield Acquisition Corp., a wholly-owned subsidiary of Stratex (“Merger Sub”), entered into Amendment No. 1 (the “Amendment”) to that certain Agreement and Plan of Merger dated as of May 6, 2014 (the “Merger Agreement”) and (ii) Stratex, Richfield and certain of Richfield’s subsidiaries amended and restated that certain Note and Security Agreement dated as of May 6, 2014 (the “Note and Security Agreement” and, as so amended, the “Amended and Restated Note and Security Agreement”). Copies of both the Merger Agreement and the Note and Security Agreement were attached as Exhibits to our Current Report on Form 8-K, filed with the Securities and Exchange Commission on May 7, 2014. Unless otherwise indicated, capitalized terms not defined herein shall have the meaning ascribed to them in the Merger Agreement and the Note and Security Agreement.

Pursuant to the Amendment, certain conditions to the obligations of the parties to consummate the Merger were amended as follows: (i) the condition that Stratex have no less than $5,000,000 in cash on hand at the time of the Merger was reduced to no less than $2,000,000 in cash on hand; (ii) the condition that not more than 5% of Richfield’s stockholders shall have taken the steps required by the Appraisal Provisions of the NRS to obtain payment for the value of their shares in connection with the Merger was increased to not more than 10% and (iii) the condition that Richfield’s liabilities (excluding certain permitted exceptions) not exceed $6,500,000 was increased to $6,650,000. In addition, the right of each party to terminate the Merger Agreement if the Merger has not been consummated by the “end date” of September 30, 2014 was extended to November 30, 2014 (and until January 30, 2015 if all closing conditions (other than receipt of Richfield’s shareholder approval or the failure of the Form S-4 registration statement to be declared effective) have been satisfied by November 30, 2014).

Pursuant to the Amended and Restated Note and Security Agreement, the amount which Stratex has agreed to advance to Richfield and its subsidiaries, has been increased by $1,000,000 to a total of $4,000,000. Of the additional $1,000,000, $200,000 may be used by Richfield for general corporate purposes and $800,000 is to be used solely in connection with the Kansas Work Program. As of the date of the Amended and Restated Note and Security Agreement, approximately $717,000 had been advanced by Stratex to Richfield to develop Richfield’s Kansas properties and $1,000,000 had been advanced for general corporate purposes. The determination to advance additional funds prior to the Merger in order to further develop Richfield’s Kansas properties was made by Stratex’ management as a direct result of the early production success in Kansas since signing the Merger Agreement.

The foregoing descriptions of the Amendment and the amendments to the Note and Security Agreement reflected in the Amended and Restated Note and Security Agreement do not purport to be complete, and are qualified in their entirety by reference to the full text of the Amendment and the Amended and Restated Note and Security Agreement, which are filed herewith as Exhibit 2.1 and 10.1, respectively, and are incorporated herein by reference.

2


Important Additional Information about the Proposed Merger

This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed transaction between Stratex and Richfield. Stratex and Richfield will file relevant materials with the Securities and Exchange Commission (the “SEC”), including a Stratex registration statement on Form S-4 that will include a proxy statement of Richfield that also constitutes a prospectus of Stratex, and a definitive joint proxy statement/prospectus will be mailed to stockholders of Richfield. STOCKHOLDERS OF RICHFIELD ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS THAT WILL BE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION THAT RICHFIELD STOCKHOLDERS SHOULD CONSIDER BEFORE MAKING A DECISION ABOUT THE PROPOSED MERGER AND RELATED TRANSACTIONS. Stockholders will be able to obtain free copies of the registration statement and the joint proxy statement/prospectus (when available) and other documents filed with the SEC by Stratex or Richfield through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by Richfield will be available free of charge on Richfield’s website at www.richfieldoilandgas.com.

Richfield, its directors and certain of its executive officers may be considered participants in the solicitation of proxies in connection with the proposed transaction. Information about the directors and executive officers of Richfield is set forth in its Annual Report on Form 10-K for the year ended December 31, 2013, which was filed with the SEC on April 14, 2014, its Current Reports on Form 8-K filed with the SEC on May 7, 2014, and this Current Report on Form 8-K. These documents can be obtained free of charge from the sources indicated above. Additional information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC when they become available.


futr

[Drill Baby]

Results are even worse when applied to wives :)