Strategic Oil & Gas Ltd
TSX VENTURE : SOG

Strategic Oil & Gas Ltd

April 30, 2009 09:45 ET

Strategic Oil & Gas Ltd. Announces 2008 Year End Results

CALGARY, ALBERTA--(Marketwire - April 30, 2009) - Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Corporation") announces its results for the year ended December 31, 2008.

The year ended December 31, 2008 showed a significant increase in production volumes and revenues over the comparable period of 2007. Average daily sales volumes increased by 98% to 162 boe/d in 2008 versus 82 boe/d in 2007. Revenues increased by 169% to $3,850,281 for 2008 compared to $1,431,323 in 2007. The Company received an average price of $64.75 per boe in 2008 and $47.79 in 2007 which is an increase of 35%. Net loss for the year ended December 31, 2008 was $208,122 versus a loss of $2,973,615 for the comparable period in 2007. Funds from operations were $776,888 versus $217,879 in 2007.

For the year ended December 31, 2008 average production increased by 80 boe/d or 98% over the year ended December 31, 2007. This increase reflects a full year of production from the Northwest Alberta properties acquired in December 2007, a new well brought on production during the third quarter at Harmattan (10-8) in West Central Alberta and regulatory approval for the commingling of production at the Ferrier property. A second well at Harmattan (8-16), similar to the 10-8 well was drilled during the fourth quarter of 2008 and is expected to be tied in by June, 2009.

Commodity prices although strong during 2008, decreased significantly in the fourth quarter and resulted in reduced cash flows in the fourth quarter of 2008 and the first quarter of 2009. Although Strategic is faced with lower commodity prices and difficult financial markets, the Corporation is relatively well positioned to move forward in 2009.

The Corporation continues the technical review on the 50,000 acres of land in the Maxhamish Region of Northeast British Columbia that Strategic has access to as a result of a farmout agreement with a major independent Canadian oil corporation. Strategic has a strong technical team that will allow it to assess this area from a geological and engineering perspective, with the plan to drill two wells by March, 2010.

The Corporation also continues to pursue new high impact opportunities in Western Canada and in International regions in which the technical team has experience.

Complete financial statements, with accompanying management discussion and analysis are available for review at www.sedar.com. In addition, the Corporation wishes to announce that it has filed with Canadian securities regulatory authorities its Statement of Reserves Data and Other Oil and Gas Information (National Instrument Forms 51-101F1, 51-101F2 and 51-101F3). These filinga are also 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