Strata-X Ltd. (TSXV:SXE) provided an update on its high-potential Vail oil development project, commenting that an in-house analysis of 120 wells supports the company’s belief that the reservoir is saturated with oil. Strata-X is the first mover on the project and has not yet revealed its specific location.
As quoted in the press release:
The dolomitic reservoir target of the Vail Oil Project is below the New Albany Shale which is interpreted to have expelled in excess of 300 billion barrels of oil (Lewan, et al., 2002). To date, the basin has produced over 4 billion barrels of oil (Higley, et al., 2001) primarily from structures above the source rock where several studies have geochemically linked the oil produced from these reservoirs to the New Albany Shale (Hatch, et al., 1990).
Strata-X recognizes direct analogies between the Elm Coulee Oil Field, located in the Williston Basin, and the Vail Oil Project. According to the Montana Board of Oil & Gas Conservation website, Elm Coulee has produced over 138 million barrels of oil equivalent to date from a continuous, unconventional oil field from the Bakken dolomitic reservoir and is expected to ultimately produce over 200 million barrels of oil (Sonnenberg and Pramudito, 2009). The dolomitic reservoirs in both Vail and Elm Coulee are of the same geological age, have similar thickness and are immediately below highly generative source rocks.