Strategic Oil & Gas Ltd.
TSX VENTURE : SOG

November 28, 2008 14:45 ET

Strategic Oil & Gas Ltd. Announces Third Quarter Results

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2008) - Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Corporation") announces its results for the nine month period ended September 30, 2008.

The nine months ended September 30, 2008 showed a very significant increase in production volumes and revenues over the comparable period of 2007. Average daily sales volumes increased by 97% to 158 boe/d in 2008 versus 80 boe/d in 2007. Revenues increased by 217% to $3,198,185 for 2008 compared to $1,009,973 in 2007. The Company received an average price of $74.09 per boe in 2008 and $46.07 in 2007 which is an increase of 61%. Net income for the nine months ended September 30, 2008 was $108,431 versus a loss of $132,970 for the comparable period in 2007. Funds from operations were $1,013,613 versus $336,478 in 2007.

For the third quarter ended September 30, 2008 average production was 179 boe/d versus 142 boe/d for the second quarter. This increase reflects a new well being brought on production during the quarter at Harmattan in West Central Alberta. Based on the success of this well, a second multi-zone well at Harmattan (8-16) has been spudded and should reach total depth by mid December.

Commodity prices have decreased significantly in the fourth quarter and will affect future cash flows. Although Strategic is faced with lower commodity prices and difficult financial markets, the Corporation is well positioned to move forward as it has a relatively strong balance sheet, steady cash flows and a new unutilized line of credit of $3,000,000. These factors will allow Strategic to fund its proposed four well drilling program entirely from its cash flow. The Corporation continues to pursue new opportunities in Western Canada and should be in a position to announce an agreement in the near future.

Complete financial statements, with accompanying management discussion and analysis are available for review at www.sedar.com.

Forward-looking information

Certain information set forth in this document, including management's assessment of future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond our control. Those risks include, without limitation, the effect of general economic conditions, risks associated with oil and gas exploration, development, production, marketing and transportation, loss of markets, industry conditions and competition, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the ability to access qualified personnel and oilfield services, decisions by regulators and the ability to access sufficient capital from internal and external sources. Readers are cautioned not to place undue reliance on the forward-looking statements as the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and actual results, performance or achievements could materially differ from those expressed or implied in such forward-looking statements and accordingly, no assurance can be given that any of the events anticipated by forward looking statements will transpire or occur, or if any of them do so, what benefit Strategic will derive therefrom.

Boe presentation

Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.

The TSX Venture Exchange has neither approved nor disapproved of the contents hereof.

Contact Information

  • Strategic Oil & Gas Ltd.
    Arn Schoch
    President
    (604) 780-9810 or (403) 870-1245