Shortly after the Silver City drill rig is demobilized, a Wellpro coil tubing unit will be mobilised and carry out a short-term initial water influx test. After this, about 40 different intervals of highly gas saturated Juandah coal seams (prognoses indicate a total of 26 metres of very gassy coals) will be abrasive jetted. Abrasive jetting is a non-frack coil tubing-deployed reservoir stimulation method, designed to improve water influx and ultimately gas flows from the targeted gassy coals. To compare the before and after stimulation results, a second short-term controlled water influx test will be carried out.
The post-stimulation water influx rate and other data are needed to design production equipment and facilities. Venus-1 will be equipped with a downhole pump, surface facilities and water handling methods as required to carry out a controlled drawdown flow test over several months.
The Venus Pilot drilling and set up is planned for October, with the subsequent production test expected to continue into early 2021. The proposed production test is designed to prove initial gas breakout and increasing gas flows over the controlled draw down period, as required to model and predict future gas flow rates and potentially commercial gas flow rates.
The results of the production test will also be used to either expand the pilot or, if commercial flow rates are achieved, commence an aggressive appraisal program designed to certify sufficient reserves for the Project Venus JV to secure gas sales agreements, allowing commercial field development.
Venus-1 fully funded through a
Strata-X is undertaking a non-brokered private placement to sophisticated and institutional investors in
Funds raised from the Placement will be used primarily to fund Strata-X's joint venture share of the CSG pilot well named Venus-1 on Project Venus located within the
Strata-X chairman,
About Project Venus
The 154 km2 Project Venus (Strata-X 50%/
As announced on
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements, which relate to future events or future performance, including but not limited to, the completion and size of the Placement, receipt of regulatory approvals and timing thereof, the Corporation's business strategies and plans for the use of such Placement proceeds, capital expenditure programs and estimates relating to timing and costs, and reflect management's current expectations and assumptions, including, but not limited to the timing and receipt of necessary regulatory approvals and third party approvals and completion of the Placement and stability of general economic and financial market conditions. The use of any of the words 'anticipate', 'continue', 'estimate', 'expect', 'may', 'will', 'project', 'should', 'believe', and similar expressions is intended to identify forward-looking statements. Such forward-looking statements reflect management's current beliefs and are based on assumptions made by and information currently available to the Company.
Those factors are not, and should not be construed as being exhaustive. These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances save as required under applicable securities legislation. This news release does not constitute an offer to sell securities and the Company is not soliciting an offer to buy securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Contact:
Tel: +1 403-483-8363
Email: colin@strata-x.com
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