Strata Oil & Gas Inc., announced at the end of May 2013 the completion of its 51-101 compliant Technical Resource Evaluation of the 22 sections (approximately 14,080 acres) of its 100%-owned Cadotte West holdings in the Peace River oil sands. This resource evaluation added 1.4 billion barrels of Petroleum-Initially-In-Place (PIIP as per COGE Handbook definition) to Strata's present resource base, bringing it to a total of 3.4 billion barrels in place. This in turn brought the recoverable portion of Strata's resource to 887 million barrels (bbls).
The 3.4 billion bbls of PIIP indicate the total barrels of crude estimated to be held within Strata's Cadotte Central and West project. This number was calculated using such factors as the ore zone thickness, porosity, and oil saturation. The 887 million barrel recoverable resource represents the amount of bitumen within the project that is technologically or economically feasible to extract.
The Cadotte Central project is estimated to have a Net Present Value (NPV) of USD $1.3 billion (over initial 20 years, producing only 360 million bbls of the original 517 million bbls available). This still leaves 157 million bbls past the initial 20 years. However, our newly revised combined total of 887 bbls of recoverable bitumen presents new and additional upside potential:
"With crude oil prices remaining solid and the present year's forecast of $121 per barrel, Strata's prospects are excellent. In addition, more cost effective and efficient methods of extraction from the carbonates are being developed and implemented. Investors have good reason to expect continued appreciation in Strata's value as we move forward with pre-production development", says President and CEO of Strata Oil & Gas, Ron Daems.