Stratex Oil & Gas Holdings Inc (STTX)

[choctaw 02]

Oilcard,
I think this is the report you are looking for.
http://www.redchip.com/assets/reports/ROILPresentation%2011-26-13.pdf

[Oilcard]

I think you are dead on in your assumptions. I have been delivering truck loads for years in the bakken play and have done well watching the different companies. I graduated engineering years ago and decided I wanted to keep my wife and kids so I went to owning oil field trucks. I think my biggest win was Northern Oil and Gas. I got in on Kodiak too. From what I am reading, this is a very large play. I have come up with different pressure expectations since looking at the well files on the Moroni well to the south. I am seeing minimum pressures with gradients of .66 which would give you bottom hole pressures north of 7500 lbs. It will be interesting to see pressure build up so we can determine the perm. What makes no sense is the that the numbers will be skewed if they havent recovered their fluids yet from the frack. If you extrapolate that to Bakken and with a zone that is much thicker, say three times, then you have reserve potential of 30 to 40 million bbls recoverable per mile. Now don't get too excited but those are very reasonable numbers. Can someone send me the link to the old presentation that some fella was talking about on the yahoo website? It was by the predecessor to Stratex.

[choctaw 02]

Guys,
I admit that I was wrong about the large silver object in the photos. It is very well accounted for on page 17 of the filing.

I am going to do some rough calculations here and speculate that the shut-in tubing pressure of this well using static head of water = 11,391 ft depth ÷ 2.31 + 122 psi flowing pressure at surface now or 5053 psig after 14 day pressure build up.
This is good because API 10,000 and API 15000 PSI Wellhead, Valves and Equipment are readily available.
Additionally horizontal wells curve of decline in pressure and production is steep when first going online.
See fig. 5, 6, 7 & 8
http://pubs.usgs.gov/of/2013/1109/OF13-1109.pdf

I am attaching a link for those such as myself that are not familiar with all the oilfield lingo.

http://www.geomore.com/porosity-and-permeability-2/

[Drill Baby]

Interesting, is it a horizontal well? How many stages in the Frac? If it's not flowing, what is the static fluid level? Easy to test...

How many step out locations are possible? The API gravity is great, premium for better oil. How much did it cost to drill? Frac? Economic IRR? Is this the first one? How many more are planned this year?

Who knows, we may have an oil field. Need to stay on top of management to ensure transparency.

[PlatypusRx]

From the 4/8/15 filing to the UT oil & gas authorities:

* On 4/8/15 they shut down the well, in order to build up pressures. In May they plan to pull the tubing, and put in a jet pump, to conduct a rate transient analysis. RTA is designed to calculate reservoir potential and, hence, reserves and spacing. (p. 8)

* During fracking operations, the well took 160,683 bbls of water and about 3,800 bbls of HCL.

* There are 1,276 vertical feet of the Tununk formation (p. 9)

* Samples were taken in a 188 foot interval from a depth 11,370-11,558 feet

* On 3/4/15 they produced 248 bbls of water, 81 bbls of oil, and
142 MCF of gas. The oil is 47 gravity, meaning it is light crude. (p. 10)

* It was flowing naturally, not being pumped, on a 12/64" choke.

* Permeability ran from .0005 to .934 milladarcies (p. 13). The
former value is not unusual for shale; the latter value is very high.

* They have been using a combustor to minimize the flare (p. 17)

The filing pretty confirms most of what I have been saying. The well consumed an unusually large amount of water, reflecting high
permeability. It has thus far been allowed to flow on its own, which is unheard of for a shale well. Nevertheless, getting the drilling water out over the next few months is going to take much higher flows, which will require pumping. That pumping will generate much higher gas flows. We probably won't hear anything for a couple more weeks -- possibly early May.

[Sun7]

Thanks again! It's good to have knowledgable like you and Choctaw regularly providing updates on STTX progress. So far it looks good.

[donut]

Sounds like good news to me.

[PlatypusRx]

New Whiting filing points to significant gas flows.

https://fs.ogm.utah.gov/bbooks/2015/02_Feb/Dockets/2015-001_176-05_Whiting/2015-001_20150408_MotionForLeaveToFileHearingExhibitsOutOfTime.pdf

[PlatypusRx]

@Sun 7 - The reason Whiting filed for a permit to (greatly) exceed the 500 MCF per day flaring limit is that gas has overtaken the water column. What follows is just conjecture.

Earlier this month, I'm told, fluids flows, consisting of an oil and drilling water mix, were brisk. Even so, the operators had recovered much less than half of the water pumped into the formation during fracking operations. But in recent weeks, the gas flows picked up, requiring that fluid flows be cut back sharply, so as to prevent the well from exceeding the 500 mcfpd regulatory limit. At the current rate, it could take a year and a half -- maybe two -- to clean up the well.

The good news is that the fluid is rumored to have a high oil content. The bad news is that less water is coming out as a result. Even at 1,000 bfpd, we're talking about several months to see what Moroni 11M can really do. Because water is heavier than oil, it retards flows. Cleaning it up is an essential first step in realizing a well's production potential.

In the late-1990s, the Moroni 1A well, drilled by Cimarron Energy, had exceptional flows, but failed due to technical problems. Based on this record plus conversations with knowledgeable geologists, my guess is that, when the Moroni 11M is finally produced at optimum capacity, we'll be looking at 2,000 bopd or more, plus gas (they'll need to build a gas pipeline up the valley, past Fountain Green and west to the trunk line at Nephi -- about 12 miles).

But Moroni 11M may not be the optimal configuration. That's because the Tununk is not behaving according the standard model for shale. There is no way the formation should have absorbed as much water as it did. It is apparently highly permeable -- pre-fracked, if you will. This suggests two things. First, it might be optimal in the future to complete into this zone with much shorter horizontals, or perhaps just vertical well bores. Intensive fracking, as was done this time, might not be needed. This would mean tighter well spacing, and quicker completions, than currently envisioned. Second, high permeability should translate to a lower decline rate than seen in, say, the Eagle Ford or Bakken shales. Instead of one well per square mile producing 2,000 bopd, you might get eight wells producing, I dunno, 300-400 bopd. We'll see.

The Oil and Gas Commission very likely will not want this completion dragging on for many, many months. Expect gas flares that are visible from the International Space Station!

[Sun7]

Thank you Choctaw & PlatypusRx! This looks very promising.

So the oil would generate @ $40 a yearly revenue of:
230 bbl x $40 x 365 = $3.36M
The gas would generate (if it can be distributed) @ $3.81 a yearly revenue of:
450 mcf x $3.81 x 365 = $0.63M
Is this considered a good well (good revenue)?
What's the yearly cost for such a well?
How many years until it's dry?
How many more wells could be drilled in that area?
As you can see I've not much experience in oil & gas.

Is the other company applying for a permit a separate company from WLL/STTX? If so, does it have their own lease?

[choctaw 02]

PlatypusRx,
Again thanks for your DD.
The link you posted contains a lot of good information. First let's take a look at this company listed as an owner in the link
you posted.

International Petroleum Limited Liability Company
4834 Highland Drive, Ste. 200
Salt Lake city, Utah 84117

In my post #525 they are mentioned as applying for a permit to drill a well in the same area to be considered in the March 25 board meeting.

Another firm, International
Petroleum, LLC, has
requested a permit from the
OGM to drill another well
in the same area. That request
will be considered at
the OGM’s March 25 board
meeting.

Now let's take a look a the well analysis ( Exhibit "A" ).

For those unfamiliar with oil and gas measurement:

1 (one) barrel (bbl) of liquid = 42 gallons of liquid
BTU = British Thermal Unit
MBTU = Thousand British Thermal Unit
MMBTU = Million British Thermal Units
SCF = Standard Cubic Foot
MCF = Thousand Cubic Foot
MMCF = Million Cubic Foot

1 SCF = 1 MBTU ( normally used for gas calculations )
1 MCF = 1 MMBTU ( normally used for gas calculations )

Natural gas closed on the NYMEX today at $2.66 per MCF or MMBTU.
According to the well analysis we have high BTU gas ( between 1422 and 1447 BTU per SCF or between $3.78 and $3.85 MCF / MMBTU )

Whiting says the well is currently producing 400 - 500 MCF of gas.

We do not know the oil flow rate of the well but we can calculate the gas, water, other (liquid hydrocarbons) ratio of the well. Using a current flare rate of 450 MCFD.
According to the well analysis the well is producing 20.85 gallons of liquids per (1) MCF of gas and 1.75% of this is water.

450 x 20.85 = 9382.5 gals liquid divided by 42 = 233.39 bbl liquid per day

233.39 bbl times 98.25% = 229.31 bbl per day liquid hydrocarbons

233.39 bbl times 1.75 % = 4.08 bbl water per day

[PlatypusRx]

"Since March 17,20l5,the V/ell is averaging between 400-500 MCFD per day," says a Request for Agency Action filed last Friday with the UT Oil and Gas Commission on Friday (see link, below). The gas is coming so hard and fast that Whiting is having to choke back the production of fluids. Rumors I am hearing say considerable drilling fluids remain to be recovered, and yet half of flows are oil. If so, this is pretty unusual, and would comport with earlier rumors that the well is significantly over-pressured (a good thing).

According to the filing, there isn't another productive well for 22 miles in any direction. This is a new discovery. STTX only owns a 3% WI on the test well and 5% of the remaining locations on the 20K acre joint venture. Nevertheless, they control 100% WI interest on another 30+ square miles abutting the Whiting acreage to the west.

https://fs.ogm.utah.gov/bbooks/2015/02_Feb/Dockets/2015-001_176-05_Whiting/2015-001_20150403.2_AmendedRequestForAgencyAction.pdf

[choctaw 02]

Sun7,
The $100 million is just a W.A.G. on my part. I would guess Whiting has already spent at least $20 million on this well. From what I see in the photos I am assuming that Whiting is planning on a "Facility" similar to some I have worked on for Apache in the Eagle Ford in South Texas. These facilities have multiple horizontal wells flowing to them. A 1200 BOE IP rate well down there is a big one. These wells only have around 200 ft of vert. pay and have to be hydraulicly stimulated (frac'd).
To the best of my knowledge this is a vertical well drilled through 1000 - 3000 ft of naturally fractured rock. The fractured rock in both cases needs "proppant" (special sand pumped into the fractured rock in the pay zone to promote the free flow of hydrocarbons).
There is a lot of things we don't know about what is going on here. For instance what is Utah's laws regarding well spacing?
We do know that Whiting is permitting a well 2-miles north of the Moroni well and another 2-miles East of that one. These are called step out wells. If these are successful there will be "infill" wells drilled between these and the Maroni well.

I do see STTX price going up a little on news of a successful well primarily because it will be on trend and closer to STTX 100% owned acreage.

As for as share price I see this as accumulation time. I own a couple of other stocks that are still drilling wells and claim that they are profitable at $20 oil. Their share prices are stagnant as well.

[Sun7]

Thank you for explaining all this and what the equipment on the picture is being used for. Do I understand correctly that they (according to their license application) intend to build a $100M facility ... how much oil do they expect to be there to justify such an investments? I read somewhere on this board that the reserves could be bigger than the Bakken ...
Since STTX has a 3% WI in this, do you believe this could have a substantial impact on the pps? Or is it more STTX neighboring leases which would become very valuable?
Don't you be afraid WLL and STTX will wait until the oil price stabilizes before moving forward or making any announcements?
With all of this going on it's a bit odd that the current pps is that low.
I'm sorry for all my questions, hope you don't mind, looks like you have years of experience in this field.
I have trip scheduled to SLC in June, and intend to visit this location to see what is going on by then.

[choctaw 02]

The blue tanks (water) and the tan tanks (dirty oil) are there for frac fluid recovery and are temporary. The fluids have to be hauled away by truck because they are full of chemicals from the drilling and cracking operations. I don't know if this oil is sellable or not but if it is it isn't worth much because of its dirty condition.

All the eguipment you see in the foreground is temporary. Look at the first photo on the extreme right side and behind the blue frac tanks and you will see another set of 6 tan tanks. These will be permanent and are the first sales oil tanks, there will be more added later.

In PlatypusRx first power point presentation he said there was a copy of Whitings "Facility Permit Application". This tell me that Whiting feels that the production from this well justifies an expenditure of near $100,000,000 give or take depending on size and guantities of equipment (single or multiple trains), pipelines to turn the oil and gas into a sellable product. If there is not a water injection well available to them (contract with the owner) they will have to drill their own. This is probably another $10,000,000 or so for the holding tanks, filtration equipment, high pressure injection pumps and the well.


The facility will likely be rectangular in shape and will extend from the near side of the well to beyond the permanent oil tanks (about 900 ft long by 300 ft wide).
The distance between the well and the permanent oil tanks will be filled with processing equipment (coolers if required, 3 phase separators (water, oil,gas), heater treater's, dehydration equipment, gas compressor, pipeline pumps if there is an oil pipeline, utility and instrument gas or air system, MCC building for electrical equipment, computer control center, etc.)

[choctaw 02]

I believe the two photos were taken opposite of each other (about 180 degrees apart)

[Sun7]

Are these 2 pics taken from the opposite sides? It looks like the
snubbing unit in the 2nd pic was on the right side of the 4 blue storage tanks, and on the 1st pic the shroud is on the left side.

Does it appear WLL/STTX are waiting for oil prices to go up before they start pumping? You guys seem to be pretty experienced in this field.

Thanks!

[choctaw 02]

Another photo and newspaper article about our well.
http://news.sanpetemessenger.com/wp-content/uploads/sanpete-messenger-latest.pdf

[choctaw 02]

PlatypusRx,
Thanks for your due diligence as well.
My opinion is the the large round object on the left side of photo is actually a shroud over the wellhead.
If you look at the shroud about 10 ft off the ground you will see multiple flowlines exiting the shroud (indicates high flowrate from the well.
If you look at the first photograph you will see that the snubbing unit is on the well and the shroud has been set to the side.
If you look at the second photograph you will see that the snubbing unit is gone and the shroud is in place over the well.
Must be a hell of a well because Whiting and partners are hiding everything.
Additionally if the object were a flare it looks to be too close to those vertical separators to meet state regulations and/or radiant heat requirements.

[Sun7]

Thanks for your due diligence! I looked at the new picture, but am unable to identify the heat signature. Probably I'm not looking good enough.
I understand you're pretty confident about this venture.

[PlatypusRx]

This link is to a pic showing heat signature at the Moroni 11M well site (left side of photo).

https://dl.dropboxusercontent.com/u/14558109/Whiting%20Sanpete%20locations.ppt

Oil-investor, I am not concerned at the lack of announcements... yet, anyway. The UT Oil & Gas Commission hearing to discuss gas flaring was postponed until April 23. We should hear more then. Meanwhile, I am hearing that the Moroni 11M is way out of the ordinary for a shale well. No shale well has ever flowed back drilling fluids like this. A narrative passed around in 2013 by Skyline, the company that sold Whiting its original 160,000 acre stake, predicted -- based on logs from a side-track drilled by Cimarron Energy, an Oklahoma outfit, in the mid-1990s -- that the formation is highly fractured (hence, not "tight") and over-pressured (perhaps an understatement). They predicted a 2,000 bopd IP per well. If this was a plain-old Bakken or Eagle Ford well, we would not be seeing production for a while yet. It's worth noting, however, that Cimarron, and before that Hansen and True Oil (who partnered on the original Moroni #1AXZH wildcat way back in 1976) had great oil shows, but experienced mechanical problems -- which is why folks are only now circling back to it. I'm all for victory dances in the end zone. But another month of production won't hurt. For now, you can buy a decent sized stake for lunch money.

[kampman]

Has anyone on this board talked directly with Mr. Funk? Does this sound like the attitude he would have from your experience? I have not talked with him. If they are still in the testing phase, do they have to report anything yet? I figured that they have sighed confidentiality agreement's with Whiteing and they would be the lead on any press releases. Whiteing is a big company, surely they know when they have too report and I am Sure it will not be one day before they have too.

[oil-investor]

Phone conversation with Stephen Funk (CEO of Stratex) 3/27/2015. I asked him why he hasn't released anything to the public about the successful drilling of the Moroni Well he said that "I am not a promotional type of guy, I don't promote. I am a production type of guy". I asked him how are people supposed to find out about this discovery? Stephen said "I don't care if people find out or not, I don't use announcements to drive up shares and I could care less what the price of the stock is". Then he offered to buy back my shares! I told him that as a CEO he should care about the share price and that if he has information that has the potential to impact investors he is obligated and that the SEC requires that he discloses that information whether he has signed confidentiality agreements with Whiting or not! His response "I don't have to file anything with the SEC!"
Thanks for nothing Stephen Funk!

[PlatypusRx]

I'm hearing the same thing, oilcard. Sources report oil trucks coming and going on the Moroni 11M well site. Flaring gas is being concealed through a chimney of sorts, but heat signatures are visible to the naked eye. We’ll see if we can’t rustle up some infrared images. Whiting was set to have had a hearing on this flaring in Salt Lake last Wednesday, but on March 19 filed for a continuance (see link, below). The matter is now set to be taken up on April 25 -- not in Salt Lake, where such meetings are usually held, but in far-away Moab, removed from prying local eyes.

https://fs.ogm.utah.gov/bbooks/2015/02_Feb/Dockets/2015-001_176-05_Whiting/2015-001_20150319_ThirdMotionToContinue.pdf

This intrigue suggests that Whiting is still in the land acquisition phase. The original acquisition consisted of 160,000 acres. Maps indicate that the STTX and Whiting acreage run cheek and jowl for 12 miles up the valley, and in some sections, are intermingled.

[Oilcard]

Sorry partner, i am not real good with putting things on websites. I don't live near this area but I drive my truck that way on occasion. I have seen big operations and seen them early so I am always lookin for these kinds of deals. This is one big lookin deal here and it is alive with the oder of oil. I know that smell.

[Oilcard]

Big companies are known for keeping good news quiet as they build land positions. Do you guys feel that sttx is going to be in trouble if they don't say something to the public? I hope they are careful because I have built a sizable position in this stock.

[donut]

$$$ STTX $$$ Looking GOOD!! Yesterday Nice Day.

[Zardiw]

DDAmanda® Chart on: $STTX: Click on the chart twice to see it better.



z

[Sun7]

Thank you! Are you living near that location?

[kampman]

Thanks for the pic and update. Hope to see and hear more soon!

[PlatypusRx]

Below I have pasted a link to slides showing (1) a photo of the Moroni 11M well site -- replete with large holding tanks, (2) Whiting permit records from the UT Oil & Gas Commission and (3) a satellite map pinpointing the locations of the Moroni 11M well (now producing) and next two permitted wells. The new locations are called “step-outs,” because they are designed to prove out all the acreage in between them and the discovery well. The red marker in the map approximates the southeastern boundary of the STTX 100% WI acreage, which runs up the valley a few miles north of Fountain Green. STTX also has a working interest in at least one -- possibly both -- of the step out wells.

Of particular interest is the Fountain 35M well (the blue marker closest to the STTX position), which was permitted only last month. If this well is successful it should have a beneficial effect on STTX acreage values. STTX has its acreage tied down by 10 year leases, most of which are very new. Fountain 35M is only a couple of miles from the STTX acreage, but it could go even closer if Whiting's planned horizontal (about a mile long) aims west.

Right now there are two theories on the STTX acreage. Either the Tununk shale peters out about where the Moroni 11M well is, or it continues over to the mountains on the left hand side of the satellite image. In the latter event (more probable, given multiple geological indicators), the shale is likely to be thoroughly ground up and, hence, very permeable. Whiting may have found evidence of such fracturing in Moroni 11M.

https://dl.dropboxusercontent.com/u/14558109/Whiting%20Sanpete%20locations.ppt

[GrundleHunter]

Hopefully soon, although maybe i should pick up a few more shares first.

[kampman]

They need to get on with a press release. We don't want them to get caught up in legal issues because they didn't. I know they all play this game. How long or when does something become a material or important enough they have to report?

[GrundleHunter]

Finally some upward momentum here.

[donut]

News is Big at the site, can't understand why its not being capitalized on. You are right PlatypusRx. $$$$$ STTX $$$$$

[PlatypusRx]

Yesterday's bump in trading activity, though welcome in one respect (nobody follows this godforsaken stock!), actually was a little disconcerting, because the company is not disclosing what is obviously a material event to its investors. Somebody knows more than you do (or did), and is acting on it. Could it be that the "money people" they were briefing in NY yesterday were getting an unfair jump on the market? (Pity the goofball who dumped at 4 cents yesterday.) The answer isn't for everyone to clam up and tell the money guys to bugger off; rather, it is time for some press releases. If the rumors I am hearing are correct, events at the well site are unprecedented.

[kampman]

That sounds great! I hope we hear something soon too. Thanks for the info. I'm ready for this too take off.

[donut]

Looks like STTX is going to BLOW sky high. $$$$$ STTX $$$$$$

[donut]

Check this out!! Sounds good to me!!! $$$$$$ STTX $$$$$


PlatypusRx Tuesday, 03/24/15 03:01:49 PM
Re: kampman post# 500
Post # of 502
Whiting has a major discovery. They are flaring gas, a lot of it. They have installed very large holding tanks -- it looks like about 10K bbls worth. They have applied for a permit for a processing facility. The rumor is that this well could set records. STTX owns a 3% interest in the discovery well and 5% interest in the surrounding 150 or so locations (the JV is 20K acres). STTX also has (or will have, when it exercises its lease options) a 100% WI in about 20K acres to the north and west of the JV acreage. According to STTX management, they have about $6MM in cash, which should be more than enough to participate in the next couple wells in the Whiting JV. Whiting has permitted one such well about 2 mi. north of the first (that much closer to the STTX acreage). What it means is that STTX's proved reserves are about to take a big bump upward, by several times its current market cap. And because this is a shale play (basically, a big slab rather than isolated traps), it's very likely that many of the other STTX locations -- more than 100 in all -- are going to be productive. News is going to come out in the next few days and weeks that radically changes the market's view not just of STTX but Whiting itself. Developments at the well site have been kept under wraps while the JV partners quietly gobbled up acreage. Now they're done. Whiting could have as many as 350 square miles under lease. Now that Whiting has committed to raising $2B in a public offering, expect the cat to come racing out of the bag in a big way.

[donut]

PlatypusRx Tuesday, 03/24/15 03:01:49 PM
Re: kampman post# 500
Post # of 502
Whiting has a major discovery. They are flaring gas, a lot of it. They have installed very large holding tanks -- it looks like about 10K bbls worth. They have applied for a permit for a processing facility. The rumor is that this well could set records. STTX owns a 3% interest in the discovery well and 5% interest in the surrounding 150 or so locations (the JV is 20K acres). STTX also has (or will have, when it exercises its lease options) a 100% WI in about 20K acres to the north and west of the JV acreage. According to STTX management, they have about $6MM in cash, which should be more than enough to participate in the next couple wells in the Whiting JV. Whiting has permitted one such well about 2 mi. north of the first (that much closer to the STTX acreage). What it means is that STTX's proved reserves are about to take a big bump upward, by several times its current market cap. And because this is a shale play (basically, a big slab rather than isolated traps), it's very likely that many of the other STTX locations -- more than 100 in all -- are going to be productive. News is going to come out in the next few days and weeks that radically changes the market's view not just of STTX but Whiting itself. Developments at the well site have been kept under wraps while the JV partners quietly gobbled up acreage. Now they're done. Whiting could have as many as 350 square miles under lease. Now that Whiting has committed to raising $2B in a public offering, expect the cat to come racing out of the bag in a big way.

[donut]

Great News!!$$$$$ About Time. Been waiting just for this. GO STTX $$$$$$$

[PlatypusRx]

Whiting has a major discovery. They are flaring gas, a lot of it. They have installed very large holding tanks -- it looks like about 10K bbls worth. They have applied for a permit for a processing facility. The rumor is that this well could set records. STTX owns a 3% interest in the discovery well and 5% interest in the surrounding 150 or so locations (the JV is 20K acres). STTX also has (or will have, when it exercises its lease options) a 100% WI in about 20K acres to the north and west of the JV acreage. According to STTX management, they have about $6MM in cash, which should be more than enough to participate in the next couple wells in the Whiting JV. Whiting has permitted one such well about 2 mi. north of the first (that much closer to the STTX acreage). What it means is that STTX's proved reserves are about to take a big bump upward, by several times its current market cap. And because this is a shale play (basically, a big slab rather than isolated traps), it's very likely that many of the other STTX locations -- more than 100 in all -- are going to be productive. News is going to come out in the next few days and weeks that radically changes the market's view not just of STTX but Whiting itself. Developments at the well site have been kept under wraps while the JV partners quietly gobbled up acreage. Now they're done. Whiting could have as many as 350 square miles under lease. Now that Whiting has committed to raising $2B in a public offering, expect the cat to come racing out of the bag in a big way.

[kampman]

Does anyone know what is going on as to the 4th quarter 2014 report. Did they not have to file one or did I miss it. When should we expect 1st quarter 2015? Has anything thing new happened or we waiting on the price of oil to go back up. Any information or update is appreciated.

[choctaw 02]

Oilcard;
Could you post a link to the tank photographs you mentioned.
I think I read that under Utah law Whiting (operator) could wait up until one year after completion to release results of a "tight hole".
Sounds like you have visited the wellsite, do you live in the area?

[Oilcard]

The well was fracked months ago. From the equipment they have on location I am being told they are still trying to drill out the frack plugs. There is a snubbing unit on the well a few days ago which usually means the well is flowing while they are trying to get out the plugs. there is oil flowing with no way to tell how much. There is no apparent gas flare and if there was it has no colour to be seen from the road. The scouting picture shows oil production tanks everywhere.I did some research and all you have to do is type in Independence Richfield or moroni well richfield and it will point you to a Redchip report and other presentations that dives further into greater detail on that project when Richfield owned it. The other lands that STTX has outside of Whiting are said to be many times better so I don't know why they don't say something. The first Moroni well had pressures at 150% of normal and 800 feet of pay in an old presentation I found of Richfields that is still on the internet.
Seems like Whiting is holding this one back and STTX is going deaf, dumb and blind. There is some real explaining to do here because it is MATERIAL if this well is making oil, PERIOD. Apparently they don't care about the shareholder because with what little is left of the abysmal market cap, this is even bigger news. I am thinking a press release or jail time for STTX management.

[choctaw 02]

This article is from the March 5, 2015 edition of the "Sanpete Messenger". In the article Whiting says the Moroni well is nearing completion and they are getting ready to "frack".
That was 8 days ago. Maybe we will have news on well results soon.

MANTI—The Sanpete
County Commission has approved
spending $150,000 for
a new high tech aerial mapping
system designed to help locate,
measure and appraise property.
At a meeting in February, the
commission also approved an
easement so power lines could
be run as the next step before
the fracking begins at the new
oil well east of North Sanpete
Middle School in Moroni.
How will life change in
Sanpete County, if it all, when
low flying planes, or drones,
start taking photos from the sky
above, and hydraulic fracturing,
or fracking, starts breaking up
various layers of shale, or other
stone, underground?
The answers to both questions
are unclear. Assessor Ken
Bench expressed the hope that
pictrometry “will be a major
improvement over what we do
now” and explained how its use
would save his office the cost of
having to send so many staffer
members “into the field to take
so many measurements.”
To emphasize potential benefi
ts, Bench related a story from
a nearby county where the use of
pictometry brought in additional
property tax revenue because two
previously unseen “sheds” built
in a very distant, hard-to-reach
place turned out to be large and
valuable structures.
Bench then told the commissioners
that Sanpete County
Sheriff Brian Nielson had agreed
to contribute $10,000 out of his
department’s budget. The sheriff
confirmed this, but took care to
explain that he intended to use
pictrometry “only” for emergency
management purposes and
“not for us to be looking in or
spying on anyone.”
The flight of aerial mapping
is expected to start approximately
two months from now—before tree
leaves start obscuring the ground.
Next, the commission heard a
report from the sheriff that touched
on the state’s proposed expansion
of the 800 MHz public safety radio
system now used by police and
other first responders in Utah’s
most populous areas., and how a
statewide system is in process of
being put in place. In the sheriff’s
it will be a long time before the 800
MHz system becomes affordable
for less-populous counties and
cities that have a big investment
in the current VHF system.
Roy Moore, representing
Whiting Oil and Gas Company,
told the commissioners
that the new well, drilled near
Moroni, was “almost finished”
and that the “fracking” would
soon begin. As a prelude to that
process he sought and received
approval of an easement that
would enable Rocky Mountain
Power to install a short length
of overhead power line across
a little piece of county-owned
land before beginning

[Oilcard]

The Moroni well completion with Whiting is sure to be announced any day. The original well this new drill offsets was full of unconsolidated shales, quartzite and sand. It was one huge fractured mass of oil and gas. It was over pressured, 6 times thicker and deeper with more oil reserves than the Bakken. So why is Whiting taking this shot here with this little independent? The oil and gas from this recent well is getting ready to be tested. It is projected to be the biggest discovery in North America and Whiting and Stratex own this play. As I see it, Whitings position is good but Stratexs position has more potential. We need someone in Utah to go to the meetings at the commission and report back to us on this board. The projection is that this well will open up the largest most prolific "shale" play in the world. A lot of details to come.

[Drill Baby]

Yeah, I agree. I am amazed how discounted some of these high quality companies are. I am loading up on some of the best energy value plays.

In 1-2 years from now, I am betting $80/bbl plus oil price.

[maverick one]

Lots of opportunity out there right now

[Drill Baby]

Maybe actually worse than Vegas - in Vegas you at least get free drinks when playing the tables and slots.