Strategic Oil & Gas Ltd.

November 14, 2008 09:30 ET

Strategic Oil & Gas Ltd. Announces Increase in Line of Credit

CALGARY, ALBERTA--(Marketwire - Nov. 14, 2008) - Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Corporation") announced that its primary lender, Alberta Treasury Branches ("ATB) has increased its available revolving operating line of credit from $1,000,000 to $4,000,000 effective November 10, 2008. The increase resulted from the Corporation's successful drilling program during the year at its West Central Alberta properties. The increased revolving operating line of credit will be available for future capital expenditures in Canada or for general corporate purposes. The terms are similar to the previous terms except that the interest rate has been reduced from prime plus 1% to prime plus 0.75%, with the next review by ATB scheduled for May, 2009. Strategic should not need to utilize this additional line during the next six months for current projects as the 4 well Alberta drilling program is anticipated to be funded from current cash flow.

About Strategic

Strategic is a junior oil and gas company with producing properties located in Northeast and Central Alberta. Production is currently over 300 boe/d, with additional production expected on stream during the 4th quarter of 2008.

Use of the term barrels of oil equivalent ("boe") or thousands of cubic feet of gas equivalent ("Mcfe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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Contact Information

  • Strategic Oil & Gas Ltd.
    Arn Schoch
    (604) 780-9810