Strata Power Corp ("Strata") (SPOWF) reported Strata's contingent and prospective resources data as of year-end in its oil and gas annual disclosure filing (Form 51-101F1). Strata's resources data is based on an independent evaluation conducted by Gustavson Associates and was prepared in accordance with National Instrument 51-101 (NI 51-101) and the Canadian Oil and Gas Evaluation Handbook (COGEH). The contingent resource P50 estimate is 1,696,800,000 MMSTBO (million stock tank barrels of oil). The results are summarized in the table below:
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The Cadotte Central resource is classified as Contingent Resource - Development on Hold (COGEH v. 2 - section 2.5.5, p. 2-71). The contingencies consist of the demonstration of commerciality, financing, and the submission of a regulatory application. Contingent Resources are defined as "those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. Contingent Resources are further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status."
The Cadotte West resource is classified as Undiscovered - Prospective Resource and is subclassified as a Prospect. Prospective Resources are defined as "those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects." Prospective Resources have both an associated chance of discovery and a chance of development. Prospective Resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity. There is no certainty that any portion of the prospective resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources. Prospective Resources have both an associated chance of discovery and a chance of development."
- Chance of Discovery: very low risk
- Chance of Development using technology under development: moderate to high risk
In the table above, the Low Estimate represents the P90 values from the probabilistic analysis (in other words, the value is greater than or equal to the P90 value 90% of the time), while the Best Estimate represents the P50 and the High Estimate represents the P10.
Strata has interests in oil sands properties located in the Peace River area of Northern Alberta, Canada and is engaged in the exploration and development of heavy oil and bitumen.
Strata's Peace River properties are located in the Peace River oil sands region in Alberta approximately 40 to 50 kilometers away from the town of Peace River, in both the Cadotte Lake area and also the Reno area. Strata currently has a 100% interest in 56 oil sands leases totaling 58,368 hectares, and a Metallic and Industrial Minerals Permit in Alberta totaling 9,800 hectares. The Company owns 3 non-producing wells on its oil sands leases. All of the oil sands leases are for an initial 15-year term (and may then be converted to non-expiring leases subject to certain requirements by the Crown) and require minimum annual lease payments to the Crown. Each oil sands lease grants the Company the right to explore for, develop and produce hydrocarbons from the geological formations described in each lease.