Strata-X Energy has secured drilling permit for the Kuhlig #1 well for the Lingle oil project in Illinois, US.
Kuhlig #1 well is a step-out of the Burkett 5-34, the first Lingle horizontal well, which achieved peak production rate of 300 barrels of oil per day.
The Burkett 5-34 well encountered oil and gas in the targeted Devonian Lingle formation.
Planned to be drilled to a depth of 16ft of the Lingle reservoir, the Kuhlig #1 is expected intersect higher initial reservoir pressure and oil saturations, in addition to core and pressure testing the Lingle formation
The resulting reservoir data will be used by the company to design the proposed Raccoon Creek #1 horizontal well.
The company plans to spud the low cost vertical well by the end of this month and start drilling operations.
Subject to funding the Raccoon Creek #1 well is likely to be drilled in early 2016.
Strata-X Energy president Tim Hoops said: "The Kuhlig #1 and the subsequent Raccoon Creek #1 horizontal well are expected to have nearly twice the reservoir thickness, more than twice the horizontal length and have much better reservoir pressure than our pioneering Burkett 5-34 horizontal well.
"The combination of these favorable factors should provide us with much improved performance and position us for development of this exciting project."
The Lingle oil project seeks to extract light gravity sweet oil from the Devonian-aged Lingle Formation, which the company estimates to hold approximately 240 million barrels of petroleum initially in place.
Strata-X owns approximately 40,000 net acres, which have potential oil reserves, in the Lingle and Grand Tower Formations.