Strike has acquired a 25% interest in the Permian Basin Joint Venture. The Joint Venture's MB Clearfork Project has conventional production and reserves plus major upside potential from the Lower Clearfork Shale Formation
Strike's Permian Basin Highlights
- 25% Working Interest in the Permian Basin Joint Venture operated by Torch Energy Advisors
- 7,500 gross acres (1,875 net acres) with conventional production and reserves
- 500 million barrels (net) independently estimated original-oil-in-place (OOIP)
- Active conventional infill drilling program to increase production
Highly prospective Lower Clearfork Shale formation up to 1,000 feet thick
Strike's Value Creation Strategy
The Permian Basin is the USA’s most prolific oil producing region. Covering an area of approximately 75,000 miles2 in West Texas, the basin has the USA’s largest oil reserves after Alaska and includes about 20 of the country’s top-100 oil fields by reserves. The Permian Basin is sought after because it is oil rich. Basin economics is also supported by the thickness of the productive formations. Multiple horizons exist between 1,000 and 25,000 feet deep with package thicknesses of up to 3,000 or 4,000 feet.
Strike has a 25% interest in the Permian Basin Joint Venture which is operated by Torch Energy Advisors, an accomplished private energy company based in Houston. The Joint Venture has a 170,000 acre ‘area of mutual interest’ (AMI) in Martin County, approximately 30 miles north of Midland, Texas.
The Permian Basin Joint Venture has acquired the MB Clearfork Project, comprising 7,500 contiguous acres (1,875 acres net to Strike) within the Midland Sub-Basin in the northwest of Martin County, Texas. The MB Clearfork Project has independently estimated original-oil-in-place (OOIP) of over 2 billion barrels, or 500 million barrels net to Strike.
The MB Clearfork Project has conventional reserves and production from the Middle Clearfork Formation. Production is approximately 120 Bbl/day, although a rapid infill drilling program during 2012 aims to increase this substantially.
The Permian Basin Joint Venture is also evaluating the potential of the Lower Clearfork Shale Formation, which is up to 1,000 feet thick. The formation presents Strike with substantial unconventional upside potential.