Stratex Oil & Gas Holdings Inc (STTX)

[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