Stratex Oil & Gas Holdings announced that Richfield Oil & Gas Company (Richfield) became a wholly-owned subsidiary of Stratex, and all outstanding shares of Richfield common stock are to be exchanged for an equal number of shares of the company’s common stock. Commencing 1 December 2014, Stratex moved its headquarters to Salt Lake City, Utah.
By combining the complimentary asset portfolios of Stratex and Richfield, the company will benefit from drilling program optimisation, the elimination of duplicative expenses from operating Richfield as a publicly reporting company, as well as economies of scale relative to field operations. The acquisition also greatly enhances Stratex’s overall acreage position to 109,982 gross acres (27,270 net acres), and expands its present Kansas footprint and adds enormous upside potential in a new core area in Utah. Stratex also plans to continue to develop its scalable acreage in south Texas.
Stratex plans to enhance its drilling program into 2015 and beyond. The company will also continue participating in a new Utah shale play in order to ramp cash flow organically through the drillbit. Stratex will also continue to focus on prospective acquisitions in proved producing basins, in order to augment and further accelerate growth, and optimise capital allocation.
