Strata-X Energy, Ltd (“Strata-X”) commissioned Nautec Energy Solutions (Nautec) to prepare an Independent Expert Report (IER) for inclusion in a prospectus for a Secondary Offering on the Australian Stock Exchange (ASX), creating a dual listing in Strata-X on both the Toronto Stock Exchange (TSX) and the ASX. The new shares are to be listed on the ASX.
Strata-X requested that Nautec provide an independent expert report (IER), relating to the petroleum exploration assets in the following large unconventional oil and gas projects and smaller conventional oil projects located in the United States of America (USA) and Australia:
- Vail Project (100% working interest), Illinois, USA
- Maverick Project (75-100% working interest) Maverick County, Texas, USA
- Sleeping Giant Project (100% working interest) North Dakota, USA
- Canning Basin Laurel Shale (100% working interest) Western Australia (WA)
- Various other smaller petroleum assets in the USA
The report addresses the following topics:
- Pertinent geology
- Hydrocarbon Prospective Resources (as defined in Section 6)
- Hydrocarbon composition
- Expected well production
- Analogues where applicable
- Government commitments (or similar)
- Work Program and budget and suitability to explore the plays
Nautec developed a forward work program depending on the level of capital raising. The proposed 18 month program was projected to cost between A$7.2 and A$16.5 million, depended upon the level of funds raised. This was to be covered by the current proposed capital raising of between A$10 million and A$20 million and the Strata-X current working capital. Reserves in the report were calculated by Chapman (2011 and 2012). Other resources were calculated by Strata-X, Nautec, Wandoo and Chapman (2011) and have been reviewed and adopted by Nautec.