Fall 08 Initial report to Stratex Oil and Gas concerning: Hydrocarbon Potential of the Red River, Tyler, and Heath Formations Beneath Stratex Leased Land in Southwestern North Dakota Report prepared by Donald Clark, Ph.D., Senior Geologist, Geoval Consulting, LLC 173 Beach 134th Street office: (917) 558-0746 Belle Harbor, NY 11694 e-mail:
[email protected] [HYDROCARBON POTENTIAL OF THE RED RIVER, TYLER, AND HEATH FORMATIONS BENEATH STRATEX LEASED LAND IN SOUTHWESTERN NORTH DAKOTA] 2 Geoval Consultants LLC Certified Petroleum Geologist 173 Beach 134th Street Belle Harbor, NY 11694 August 25, 2011 Mr. Steve Funk Stratex Oil and Gas IDC 888 Seventh Avenue New York, NY 10106 Stratex Oil and Gas owns acreage in Williston Basin, North Dakota in the Golden Valley area, containing potential petroleum reservoir targets of three formations with multiple objectives that have reduced the risk factors significantly. 1. The Tyler Formation; a channel sand—70 to 100 feet thick 2. The Heath Formation; originally rich, thermally mature limestone 3. The Red River Formation; productive in and adjacent fault-block The petroleum potential is based on hear historic petroleum production. Wells in the Tyler and the Red River are capable of 300,000 and 199,000 barrels cumulatively. The potential can only be fully exploited with the proper placement of wells using the diagenetic and seismic models. The resistivity values of the shale beneath the land leased by Stratex Oil and Gas are in the 35 ohm-m-range. This value was the value used to determine if the Bakken shale was mature. If this relationship holds true for the Tyler formation, then this map suggests that the area leased by Stratex Oil and Gas is thermally mature and may contain oil.