Strategic Oil & Gas Ltd

Strategic Oil & Gas Ltd

October 07, 2010 09:21 ET

Strategic Oil & Gas Ltd. Closes $22 Million Bought Deal Financing

CALGARY, ALBERTA--(Marketwire - Oct. 7, 2010) -


Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Company") has completed the bought deal financing agreement which was announced on September 16, 2010 (the "Financing") on the following terms:

  • 16,700,000 common shares of Strategic (the "Common Shares") at a price of $0.90 per Common Share (the "Common Share Offering Price"); and
  • 4,550,000 Common Shares to be issued on a flow-through basis (the "Flow-Through Common Shares") at a price of $1.10 per Flow-Through Common Share, for gross proceeds of $20,035,000.

The underwriting syndicate increased the offering by 1,600,000 Common Shares and 682,500 Flow-Through Common Shares by electing to exercise its overallotment allocation, resulting in the issuance of 18,300,000 Common Shares and 5,232,500 Flow-Through Common Shares for gross aggregate proceeds of $22,225,750.

Macquarie Capital Markets Canada Ltd., was the lead underwriter for a syndicate of underwriters including CIBC World Markets, Clarus Securities Inc., PI Financial Corp. and Raymond James Ltd.

The net proceeds of the offering of the Common Shares will be used by the Company: to fund a portion of its development program at Maxhamish, in north-eastern British Columbia; to exploit, through additional drilling, its assets at Taber and Conrad in southern Alberta; and for general corporate purposes. The Flow-Through Common Share proceeds of $5,755,750 will be used to incur eligible Canadian exploration expenditures that will be renounced to subscribers effective on or before December 31, 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 Company can be found on its website at

Forward-looking information

Certain information set forth in this document, including management's assessment of future plans and operations, closing of the offering and the proposed use of proceeds 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, the state of the capital markets generally 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. 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.

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