SXE Strata X Energy Ltd

The directors and management of Strata-X Energy Ltd. ("Strata-X" or the
"Company") (TSX VENTURE:SXE)(ASX:SXA) are pleased to announce that Strata-X is
in the early stages of carrying out controlled long term production tests on two
horizontally drilled wells through two separate Devonian aged light oil resource
zones in the Illinois Basin, the Lingle and Grand Tower formations. This week,
the Company has sold its first oil from the project's totaling 290 barrels of
light crude for an estimated price of $95.75 per barrel.


The target and expectation of the production tests is commercial oil production
rates in both zones. It is anticipated that initial flow rates of 100 to 200
barrels of oil per day will be commercial depending on the ultimate decline
rates of the wells. Once commercial flow rates are established and following an
appraisal well program, infill development drilling could commence in 2015.


The Company's independent engineers have estimated the two resource zones
containing 338 million barrels PIIP (petroleum initially in place) of light oil
within Strata-X's 72,000 net acres. (1)(2) ASX disclosure note - 5.28.2 - The
estimated quantities of petroleum that may potentially be recovered by the
application of a future development project(s) relate to undiscovered
accumulations. These estimates have both an associated risk of discovery and a
risk of development. Further exploration appraisal and evaluation is required to
determine the existence of a significant quantity of potentially moveable
hydrocarbons.


Copper Mountain Oil Project Update:

After installing permanent water disposal facilities, Strata-X commenced a slow
controlled pump test of the horizontal Blessing 1-4H well late last week. The
well is currently averaging 436 barrels of fluid per day consisting of 31
barrels of oil and 405 barrels of water. Over the coming weeks, the water cuts
are expected to reduce as the water is drained from the stimulated zones and
replaced with oil flowing from the formation matrix.


Approximately 25% of the lateral section of the Blessing 1-4H well has been
modestly stimulated and by the previous operator. Pending positive results of
this initial controlled pump test, the remainder of the horizontal section of
the well may be perforated and stimulated exposing more reservoir to the
horizontal wellbore.


The Blessing 1-4H well is Illinois Basin's first horizontal test of the Devonian
aged Grand Tower formation. The Strata-X commissioned, independent third party
resource report, has estimated that the Copper Mountain Oil Project has 128
million barrels of PIIP net to Strata-X.


In April 2014, Strata-X purchased 23,595 net acres of production and exploration
assets in the Illinois Basin adjacent to its existing Vail Oil Project. The
acquisition, known as the Copper Mountain Oil Project, is prospective for
conventional and unconventional light oil accumulations in shallow Mississippian
age formations (from 700 metres depth) as well as the deeper Middle Devonian age
formations (approx. 1200 to 1600 metres depth). Included in the Project
acquisition is the Blessing 1-4H horizontal well drilled by the prior operator
in mid-2013 (see above).


Vail Oil Project Update:

As previously announced by the Company in a news release dated May 22, 2014,
following the completion stimulation of the horizontal Burkett 5-34HOR well, the
well flowed back oil, formation water and stimulation fluid totaling 116 barrels
of oil and 2,100 barrels of the approximately 4,200 barrels of injected
stimulation fluid during a 30 hour flowback.


Following the initial flowback test, the Company brought in a work over rig to
swab test the well to determine its potential productivity to help design
permanent downhole and surface production facilities. During the swab test
increasing gas flows were observed but it was determined that the swabbing could
not keep up with the excessive water, oil and filtrate influx rates into the
wellbore and the rig was released. The large influx of fluid indicates the
successful multistage stimulation of the well was beyond projected expectations.


Strata-X is in the process of procuring and installing a high volume submersible
pump to accelerate the fluid draw from the well and to carry out a long term
production test to help determine oil and decline rates. Electricity from nearby
power lines to run the pump is currently being procured and it is anticipated
that it will take about 4 weeks to connect.


Similar to the Blessing well, the initial expectation is that high water cuts
relative to oil should reduce in a few weeks as the water and filtrate is
drained from the induced fractures and is replaced by light oil flowing from the
formation matrix into the induced fractures, to the pump, then to the surface
production facilities. The Company will dispose of any produced water on the
Burkett 5-34HOR well into its own disposal well located approximately 1200
metres from the Burkett well. Water disposal costs are expected to be less than
$1 per barrel.


About Strata-X

Strata-X is a Denver, Colorado (USA) based company and is engaged in the
business of oil and gas exploration and development with a variety of
exploration opportunities in North Dakota, California, Texas, Illinois and
Western Australia and production and development opportunities in California.
Strata-X has 139,785,415 common shares outstanding and trades under the symbol
"SXE" on the TSX-V and "SXA" on the ASX.


(1) Resource information cited in this News Release for the Copper Mountain Oil
Project are Prospective Resources, per an independent third party report
effective 1 April 2014 ("Report") from Chapman Petroleum Engineering Ltd.
("Chapman") who's author, Charles Moore, a registered Professional Engineer in
the Province of Alberta, Canada, consents to the inclusion of this resource
information in this Presentation as it appears and information relating to the
Prospective Resource is based on, and fairly represents, information and
supporting documentation prepared by Charles Moore. There is no certainty that
stated resources will be commercially viable to produce any portion of the
resources. The Report reviewed only Prospective Resources as the project is not
sufficiently developed to assign Contingent Resources or Petroleum Reserves to
it, further, all Petroleum Initially in Place figures relate to undiscovered
quantities. Figures shown reflect Strata-X's economic interest (US Dollars) net
of royalty or other burdens and were generated, using the deterministic method.
Forecasted figures were derived using forward commodity strip pricing, regional
drilling, completion and production expenditures and applicable production
taxes. Strata-X is the title holder of the tenement/leases held covering the
Copper Mountain Oil Project which were subject to the Report. The Report
reviewed approximately 800 tenements/leases held by the Company with individual
owners covering 20,146 net acres with each tenement/lease having a range of
expiration dates, royalties and other provisions. Prospective Resources were
determined in the Report after Chapman completed an analysis of the available
technical data including the geological and geophysical interpretation presented
to them by Strata-X, information from relevant nearby wells or analogous
reservoirs and the proposed program for the project. Chapman estimated a
Probability of Commercial Success of 25% associated with the reported
Prospective Reserves with a 33% chance of discovery and calculated the net
capital exposure of this project to the Company of $5,625,000, representing the
cost of drilling, completing, testing and abandoning three dry holes which
exploration timing is not yet known. In establishing the Probability of Success,
Chapman gave consideration to both geological and commerciality factors. The
geological factors include the four main geological components of a petroleum
system needed for commercial production, source rocks available to generate
hydrocarbons, reservoir rocks to accumulate hydrocarbons, a stratigraphic or
structural trapping mechanism with a seal to hold hydrocarbons and a mechanism
and proper geological timing allowing for hydrocarbons to migrate into the trap.


The estimated quantities of petroleum that may potentially be recovered by the
application of a future development project(s) relate to undiscovered
accumulations. These estimates have both an associated risk of discovery and a
risk of development. Further exploration appraisal and evaluation is required to
determine the existence of a significant quantity of potentially moveable
hydrocarbons.


(2) This information relates to Petroleum Reserves/Prospective
Resources/Contingent Resources that was prepared and published by AWT
International dated 18 December 2012 and published in Strata-X Energy Ltd's
"Prospectus 2013" (available online at www.strata-x.com) as part of the
Companies 2013 Australia Securities Exchange Initial Public Offering and is
based on, and fairly represents, information and supporting documentation
prepared by, or under the supervision of Doug Barrenger ("JORC Competent
Person"), employed by AWT International and is independent of Strata-X Energy
Ltd. At the time of the Prospectus 2013 issuance, Doug Barrenger was an employee
of AWT International and a member of the Exploration Society of Australia (PESA)
amongst other professional petroleum organisations. AWT International consents
to the inclusion of this information in this document. As of the issuance of
this document Strata-X Energy Ltd management is not aware of any material
information that would change the results of the AWT International report as
published in the Prospectus 2013.


This announcement was made in Canada for the TSX.V and in Australia for the ASX.

Public documents for Strata-X Energy Ltd. can be found at SEDAR (Canada)
(www.sedar.com) and ASX.com.au (Australia).


By definition of the COGE Handbook - "Undiscovered resources are those
quantities of oil and gas estimated on a given date to be contained in
accumulations yet to be discovered." The Handbook further states - Caution (per
NI 51-101/5.9(2)(v)(B)) - "There is no certainty that any portion of the
resources will be discovered. If discovered, there is no certainty that it will
be commercially viable to produce any portion of the resources." In addition,
per NI 51-101/5.6 "the estimated values disclosed do not represent fair market
value."


CAUTIONARY STATEMENTS

This news release contains forward-looking statements, which relate to future
events or future performance and reflect management's current expectations and
assumptions. The use of any of the words "anticipate", "continue", "estimate",
"expect", 'may", "will", "project", "should", 'believe", and similar expressions
is intended to identify forward-looking statements. Such forward-looking
statements reflect management's current beliefs and are based on assumptions
made by and information currently available to the Company. Readers are
cautioned that these forward-looking statements are neither promises nor
guarantees, and are subject to risks and uncertainties that may cause future
results to differ materially from those expected and the forward-looking
statements included in this news release should not be unduly relied upon. See
"Risks and Uncertainties" in the Company's Filing Statement dated August 30,
2011 available on SEDAR at www.sedar.com. These forward-looking statements are
made as of the date hereof and the Company does not assume any obligation to
update or revise them to reflect new events or circumstances save as required
under applicable securities legislation. This news release does not constitute
an offer to sell securities and the Company is not soliciting an offer to buy
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful prior to registration or qualification under the securities laws of
such jurisdiction.


Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Strata-X Energy Ltd.
Tim Hoops (USA)
President
+1 855-463-2400
info@strata-x.com


Strata-X Energy Ltd.
Colin Christensen (Canada)
Investor Relations
+1 403-483-8363
colin@strata-x.com


Strata-X Energy Ltd.
Duncan Cornish (Australia)
Corporate Secretary
+61 7 3212-6299
dcornish@strata-x.com

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