Strategic Oil & Gas Ltd
TSX VENTURE : SOG

Strategic Oil & Gas Ltd

October 05, 2010 05:00 ET

Strategic Oil & Gas Ltd. Announces Closing of Acquisition of Additional Maxhamish Interests

CALGARY, ALBERTA--(Marketwire - Oct. 5, 2010) - Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Corporation") is pleased to announce that it has completed the acquisition with its partner of the remaining 35% working interest in the Maxhamish, northeast British Columbia oil resource play (the "Property"), for a total purchase price of $13.0 million ($5.0 million net to Strategic) from a major Canadian independent energy corporation. With the closing, the current farmout agreement with respect to the Property has been eliminated providing Strategic with an undivided 38.5% working interest in all the lands (> 26,000 net acres) in the Maxhamish area. The purchase price was paid out of available working capital. The effective date of the acquisition was August 1, 2010.

About Strategic

Strategic is a well capitalized junior oil and gas company with producing properties located in Maxhamish, northeast BC and Southern and Central Alberta. Production capability is currently over 300 boe/d (excluding Maxhamish) with additional production being brought onstream from the recently announced drilling program at Taber and Conrad.

Strategic's highly regarded subsurface technical team is primarily focused on implementing development plans for the Maxhamish project and its southern Alberta properties, while continuing to review other high impact prospects.

Further information with respect to the Corporation can be found on its website at www.sogoil.com.

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.

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