Strata Oil & Gas Inc. Discovers Major Bitumen Resource
Strata Oil & Gas Inc. Discovers Major Bitumen Resource
Sep. 27, 2007 01:00 PM
CALGARY, AB -- (MARKET WIRE) -- 09/27/07 -- Strata Oil & Gas Inc. ("Strata") (OTCBB: SOIGF)
is pleased to announce the results of its drill program conducted earlier
in 2007. Independent analysis of the drilling results and existing data
available on a portion of the leases held by Strata gave an estimate of the
original oil in place of 2.25 billion barrels of bitumen. This volume is
considered to be a "High Estimate" of the in-place Discovered Resource made
in accordance with the procedures of the Canadian Oil and Gas Evaluation
(COGE) Handbook.
Norwest Corporation ("Norwest") of Calgary, Alberta, Canada recently
completed this independent evaluation of in-place bitumen resources on a
portion of Strata's Cadotte leases which cover an area of 29 sections
(approximately 18,345 acres) in the Peace River region of Alberta. Norwest
evaluated data from 57 wells in the area to determine the thickness
variation of the ore. Geophysical logs and laboratory measurements for 18
of these wells were also evaluated.
Norwest found that in the Debolt and Elkton carbonate Formations on
Strata's leases much of the ore zone exceeded a thickness of 10 metres and
a bitumen grade of 10 percent by weight. The resource is bedded and
continuous with strong correlation of the ore zones between adjacent wells
in the target area.
At a minimum bitumen grade of 10 percent by weight and an ore thickness of
more than 10 metres, Norwest has identified a "Low Estimate" of 1.3 billion
barrels in place on Strata's Cadotte leases. Norwest's "Best Estimate,"
which has a grade cut-off for bitumen of 8 percent by weight but no
thickness constraint, is 1.99 billion barrels in-place.
"We are very pleased with these initial results," stated Manny Dhinsa,
President and CEO of Strata, "which demonstrate that our resource at Peace
River is exploitable and substantial. Our next step is to drill a series of
production test wells in order to determine the most favorable method for
extracting the bitumen."
Norwest is currently preparing a formal valuation on behalf of Strata that
will assess the economic parameters of the project based on a number of
scenarios. Strata expects to complete an engineering report and economic
analysis in the fourth quarter of 2007.
The estimate prepared by Norwest, compliant with the requirements of
National Instrument 51-101, only addresses resources in-place. Recoverable
bitumen volumes are not addressed in this report because no estimate of the
recovery factor is available yet. Mr. Geoff Jordan, P. Geol., Senior Vice
President of Norwest Corporation and a qualified person as defined by
National Instrument 51-101, is responsible for the preparation of the
technical information in this news release.
Strata Oil & Gas Inc. is a Canadian junior exploration company focused on
carbonate-hosted bitumen deposits in the Peace River area of Alberta,
Canada. Strata's current total land holdings consist of approximately
112,692 acres with 111,692 acres (approximately 165 sections) being located
in the Peace River area.
Strata Oil & Gas is a trademark of Strata Oil & Gas Inc. This announcement
contains forward-looking statements which involve risks and uncertainties
that include, among others, limited operating history, risks related to
petroleum exploration, limited access to operating capital, and other
factors which may cause the actual results, performance or achievements of
the Company to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements.
More information is included in Strata's filings with the Securities and
Exchange Commission which may be accessed through the SEC's web site at
www.sec.gov.
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