Strategic Oil & Gas Ltd.

January 25, 2007 18:58 ET

Strategic Oil & Gas Ltd.: Private Placement Closed

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 25, 2007) - Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Company") wishes to announce that it has, subject to regulatory approval, issued approximately 2,838,000 units at $1.00 per unit, for total gross proceeds of approximately $2,838,000. Each unit consists of one common share and one warrant. Each warrant will entitle the holder to subscribe for an additional common share for $1.25 for 12 months from closing, and for $1.60 for the next 12 months thereafter.

The Company paid Gilford Securities Inc., of New York, New York, brokerage commissions of approximately $227,000, and issued 283,800 broker warrants, each broker warrant entitling the holder to subscribe for one share at $1.00 for a period of 2 years from closing. The shares and warrants issued are subject to trading restrictions until May 25, 2007.

The Company has recently raised a total of approximately $4,710,750, including these funds together with the previously announced $1,872,750 flow-through financing that closed in December, 2006.

Funds from this private placement will be used to meet anticipated drilling and completion costs in respect to the Company's 2007 drill program. A rig is presently being mobilized with a view to spud the first well of this program on or around February 1, 2007.

Certain information regarding the Company contained herein may constitute forward looking statements. Forward looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward looking statements. The Company's forward looking statements are expressly qualified in their entirety by this cautionary statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

Contact Information

  • Strategic Oil & Gas Ltd.
    Arn Schoch
    (604) 685-1349
    Cell: (604) 780-9810