The directors and management of Strata-X Energy Ltd. announced that Strata-X and Real Energy, operator of Project Venus located within the Surat Basin Walloon CSG fairway (the JV), plan to commence ground operations in Octoberfor its first CSG pilot well named Venus-1. Roma, Australia-based drilling contractor Silver City, has been selected to drill the Venus-1 well, the Project's first CSG well. The well is planned to be drilled to 400 metres, cased, then drilled out to a total depth of approximately 680 metres, leaving the highly gas saturated Juandah coal seams open and uncased. Shortly after the Silver City drill rig is demobilized, a Wellpro coil tubing unit will be mobilised and carry out a short-term initial water influx test.

After this, about 40 different intervals of highly gas saturated Juandah coal seams (prognoses indicate a total of 26 metres of very gassy coals) will be abrasive jetted. Abrasive jetting is a non-frack coil tubing-deployed reservoir stimulation method, designed to improve water influx and ultimately gas flows from the targeted gassy coals. To compare the before and after stimulation results, a second short-term controlled water influx test will be carried out.

The post-stimulation water influx rate and other data are needed to design production equipment and facilities. Venus-1 will be equipped with a downhole pump, surface facilities and water handling methods as required to carry out a controlled drawdown flow test over several months. The Venus Pilot drilling and set up is planned for October, with the subsequent production test expected to continue into early 2021.

The proposed production test is designed to prove initial gas breakout and increasing gas flows over the controlled draw down period, as required to model and predict future gas flow rates and potentially commercial gas flow rates. The results of the production test will also be used to either expand the pilot or, if commercial flow rates are achieved, commence an aggressive appraisal program designed to certify sufficient reserves for the Project Venus JV to secure gas sales agreements, allowing commercial field development.