Nebraska Sioux County unconventional play eyed

Stratex Oil & Gas Holdings Inc., Watertown, Conn., said it has leasehold interests in 6,000 net acres in Sioux County, northwestern Nebraska, where it said it is monitoring a possible unconventional shale play in northeastern reaches of the Denver basin.

Stratex noted that Fidelity Exploration & Production Co., a subsidiary of MDU Resources Group, Bismarck, ND, has received a permit to drill the Cattle 1-1H horizontal well in Sioux County. The well is permitted to 8,000 ft or Pennsylvanian Atoka in NE SE 26-26n-56w, Sioux County.

Earlier in 2012, Fidelity was issued a permit for the Sioux Ranch 22-11 well in 11-25n-56w, a proposed 7,895-ft vertical Atoka test within about 10 miles east of the Wyoming state line at Goshen County and 60 miles southwest of Chadron, Neb.

The Cattle 1-1H permit states that the field name of Dancing Bull has been assigned, a possible indication of a hydrocarbon discovery.

Stratex said it acquired its acreage with the anticipation that an unconventional shale play may develop in which it could participate as a nonoperating working interest partner.

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