Strategic Oil & Gas Ltd
TSX VENTURE : SOG

Strategic Oil & Gas Ltd

April 19, 2011 05:30 ET

Strategic Oil & Gas Ltd. Announces 2011 Capital Budget and Update on First Quarter Operations

CALGARY, ALBERTA--(Marketwire - April 19, 2011) - Strategic Oil & Gas Ltd. ("Strategic" or the "Company") (TSX VENTURE:SOG) is pleased to announce its 2011 capital budget and provides an update on operations in the first quarter of 2011.

2011 Capital Program

The Board of Directors of Strategic recently approved the 2011 capital spending budget of $25.1 million. The spending program consists of:

  • Drilling, completions and tie-ins - $15.7 million
  • Workovers, recompletions and optimization - $1.9 million
  • Land - $1.0 million
  • Seismic - $ 3.6 million
  • Roads, facilities and infrastructure - $2.9 million

Over 95% of the capital spending will be allocated to the Company's primary light oil properties of Maxhamish and Steen River. Strategic exited the first quarter of 2011 with production over 1,000 boe/d and expects to exit the fourth quarter with production in the range of 1,600 to 2,000 boe/d (75% oil).

Operations Update, First Quarter of 2011

In the first quarter of 2011, Strategic aggressively pursued and completed 2 Keg River wells, a 3D seismic program and an all weather road into the North Marlow area of Steen River. Strategic has signed an agreement with Akita Drilling Ltd. to secure a drilling rig from August 2011 to April 2012. Over the next 12 months Strategic plans to drill up to 10 wells in Steen River, with drilling operations to resume in the third quarter.

At Maxhamish, the 2011 development program is proceeding. The all weather road is under construction with completion targeted for May, 2011. Drilling operations are expected to commence in June, 2011 with completion of 4 multi-frac horizontal wells by the fourth quarter.

About Strategic

Strategic is a well capitalized junior oil and gas company with an unutilized line of credit, committed to growth by exploiting its light oil assets in Maxhamish, northeast BC and Steen River in northwest Alberta. Strategic's highly regarded subsurface technical team is primarily focused on implementing development plans for its light oil properties, while continuing to review other high impact light oil resource plays. Strategic's common shares trade on the TSX Venture Exchange under the symbol SOG.

Further information with respect to the Company can be found on its website at www.sogoil.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 there from. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Strategic Oil & Gas Ltd.
    Arn Schoch
    President & CEO
    Cell: 403.870.1245 or 403.718.0183 ext. 242
    403.718.0184

    Strategic Oil & Gas Ltd.
    1800, 510 5th Street SW
    Calgary, AB T2P 3S2
    www.sogoil.com