Strata Oil & Gas is focused on the exploration and development of carbonate-hosted bitumen in Western Canada.
Today, our land base comprises approximately 53,760 acres (approximately 84 sections). Of that, nearly 52,480 acres (approximately 82 sections) is in the Peace River region. This region is estimated to contain more than 188 billion barrels of oil.
Strata Oil's Cadotte lands are surrounded by Koch and Shell.
Strata Oil's Cadotte holdings consist of Cadotte Central, Cadotte West, and Cadotte East.
Strata's two main projects Cadotte Central and Cadotte West are located just north of Shell Canada's Carmon Creek project and are contiguous to Husky's, Koch's, and Penn West's property holdings in Peace River. Strata's 2013 Technical Resource report identifies 3.41 Billion barrels of Petroleum-initially-in-place (PIIP) on 51 sections of our Cadotte Central and West projects (see our Edgar filings for the full resource reclassification report). A summary of this PIIP Resource is outlined in the table below:
The bitumen we have discovered is contained within the carbonates and sands formations. This is within the Carbonate Triangle in the province of Alberta. In particular, the majority of Strata's oil is resident in the Debolt Carbonate formation (Peace River Region). In general, the bitumen requires thermal treatment. However, of the formations in the Carbonate Triangle, the Debolt has been shown to have characteristics which are favorable to production.
In a Resource Reclassification report prepared by Norwest Corporation, a literary review was conducted of data and publications concerning pilot projects carried out in the carbonate of the Grosmont Formation, to better understand the potential behavior of similar carbonate in the Debolt Formation in the Cadotte area. It was found that:
- The fluid and rock properties are very similar in both the Grosmont and the Debolt Formations, with a tendency to be more desirable in the Debolt because of the somewhat higher reservoir pressure temperature;
- The numerous thermal projects conducted in the Grosmont Formation have had mixed results with surprisingly high production in some of them, especially when using the Cyclic Steam Stimulation recovery method. This technique is considered very promising for application on the Strata Cadotte Project;
- Both the Grosmont and Debolt Formations are reported to have "heterogeneous" characteristics that provide high lateral permeability inside ore zones with very high oil saturation;
- Laboratory tests show high recovery factors with thermal processes, but other methods are also being extensively tested. The most promising appear to be those using solvents;
- Reservoir simulation seems to confirm the channeling character of the rock in terms of steam and combustion gas behaviour;
- Current bitumen recovery testing and development activity from carbonate is growing as oil prices make these reservoir types and fluids more economic; and
- Alternative sources for thermal energy generation are also being considered to exploit carbonate reservoirs, as water consumption costs and carbon dioxide disposal costs may rise significantly in the future.
Strata Oil's Debolt-hosted project has superior characteristics to the best Grosmont-hosted deposits.
Strata Oil determined that its Debolt-hosted deposit compares favorably to the best Grosmont-hosted bitumen resources as the above table demonstrates. We also executed a study which confirmed the favorable production profile of our deposit compared to Grosmont-hosted bitumen assets.