Strata-X Energy Ltd. says that production equipment has been installed and flow lines have been laid for the Blue Spruce #1 well in anticipation of first production later this week. The efforts to bring the well on production have been somewhat hampered by ground conditions and inclement weather.

The Blue Spruce # 1 well was drilled to a depth of 3,100 feet with 15 feet of interpreted pay in the Aux Vases Formation. As previously announced, following a successful stimulation of the Aux Vases formation, the well produced 10 barrels of fluid entry per hour with a 25% cut of light oil. Once long term production of the well commences later this week, the oil cut is expected to increase as the water pumped into the formation during the stimulation is recovered.

Many of the original wells in the mapped Blue Spruce #1 oil field area were drilled when oil prices were less than USD$2 per barrel and the economic threshold for production was much higher than is the case even at today's 'low' oil price environment. Additionally, few of the wells in the area were completed using the modern mini stimulation techniques Strata-X carried out on its well.

Tags: Strata-X Energy Ltd.