Mr. Tim Hoops reports

STRATA-X PRODUCTION UPDATE

Strata-X Energy Ltd. is providing an update on the Burkett 5-34 HOR well, located in Clay county, Illinois. As previously announced, an electrical submersible pump has been working to reduce the fluid level on the Lingle formation to draw the hydrostatic pressure down in the well to a point where the Lingle reservoir can produce oil more effectively. This process often takes time until the full results are known, but the well is showing improvement in both terms of total oil rate and oil cut (a percentage of oil to the overall fluid produced).

Oil rates as high as 10 barrels per hour have been achieved, and oil cuts up to 17 per cent with total oil produced within a 24-hour period as high as 120 barrels. Both the oil rate and cut vary throughout the day, but the overall trend is improving. With the increased oil rate, the company has seen an increase in gas volumes and pressures thought to be associated with the increase in Lingle oil. It is still too early to tell what the peak production rate will be, or the ultimate recovery from this well. There is no assurance the well will continue to produce at this rate in the future.

This increase in total oil rate and oil cut were achieved after the company replaced the 1,000-barrel-per-day electric submersible pump originally put in the wellbore to a depth of approximately 3,250 feet with a larger pump capable of pumping up to 1,600 bbl per day. The replacement pump was set at a depth of approximately approximately 4,325 feet. Strata-X completed the pump replacement workover on Oct. 21, 2014.

We seek Safe Harbor.