Strategic Oil & Gas Ltd
TSX VENTURE : SOG

Strategic Oil & Gas Ltd

June 09, 2009 12:15 ET

Strategic Oil & Gas Ltd. Corporate and Operational Update

CALGARY, ALBERTA--(Marketwire - June 9, 2009) - Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Corporation") provides an update on its corporate and operational activities:

Corporate

Annual General Meeting

The Corporation has scheduled its Annual General Meeting for Wednesday, July 22 at 10:00 AM in Calgary. Further details will be sent to shareholders on or before June 22, 2009.

Zinmac Inc. Acquisition

As previously reported, the acquisition of Zinmac Inc. in March, 2009, provides Strategic with the opportunity to evaluate significant resources. The combination of the strong financial and deal making ability of the original Strategic team with the leading edge technical team of Zinmac Inc. will allow Strategic to identify unique high impact plays in Western Canada and international areas. The technical team is among the best in the industry at sub-surface analysis with expertise in geology, geophysics, petrophysics and reservoir engineering. The signing of the Maxhamish farmout agreement is an example of the ability of the combined team to add value.

Corporate Website

As of June 9, 2009 additional information on Strategic can be found on Strategic's website at www.sogoil.com.

Operational

West-Central Alberta

The Company continues to develop its current properties in West Central Alberta. An additional follow up well at Harmattan (8-16) was drilled, and will be tied in early in the third quarter of 2009, and will benefit from reduced royalties from the Alberta government's recent announcements of royalty incentives. This well is estimated to be similar to the 10-8 well currently producing in excess of 800 mcf/d (gross) of liquids rich natural gas from the Mannville zone. Strategic has a 12% working interest in the 8-16 well.

Additional prospects are being reviewed by the Corporation in the Harmattan/Pembina/Ferrier area, which continues to provide multi-zone drilling opportunities. An exciting horizontal Cardium oil play is being developed by several companies in the immediate area. These horizontal wells into the Cardium formation are showing initial production rates in excess of 250 bopd. Strategic has identified the Cardium zone on certain of its lands, and is monitoring the current activity closely to assess the potential to Strategic.

Maxhamish, BC

Plans are proceeding to commence drilling a minimum of two wells in late December, 2009 with the objective of having the wells tied-in by April, 2010. Three well locations have been identified and licensed in preparation of this drilling program. The current plan is to drill wells in the Chinkeh formation, using multi-stage horizontal fracture techniques. These oil wells are expected to flow at initial rates of 300 bopd, with an average first year rate of 180 bopd per well. Success in these early wells will open up an extensive regional oil development project.

As previously reported, the farmout Agreement at Maxhamish provides the Corporation access to over 50,000 acres of highly prospective acreage in the Liard Basin, an area with significant hydrocarbon production. The farmout agreement provides Strategic with:



1. Access to a large land base in an area with natural gas potential from
multiple zones along with gas infrastructure already in place.
2. An undeveloped aerially extensive light oil play (API of 40 degrees) in
the Chinkeh sand formation. This formation compares favourably to other
developing horizontal resource plays in the Western Canadian
Sedimentary Basin in terms of flow characteristics.
3. A project in an attractive fiscal jurisdiction with incentives for
exploring.


This play will be the focus for the remainder of 2009 as extensive review of the regional geology and operational planning continues.

International

For its international projects, Strategic is looking to participate with a manageable equity interest in oil or natural gas projects that have large upside potential. One current area of interest is the Middle East. Strategic is focusing on underexplored areas of prolific hydrocarbon bearing regions that could provide the Corporation with a relatively low cost entry into a world class exploration project. The Corporation also continues to review and assess the economics of projects in West Africa. Additional projects in earlier stages of assessment also continue to be reviewed by Strategic.

About Strategic

Strategic is a junior oil and gas company with producing properties located in Northwest and Central Alberta. Production is currently 200 to 225 boe/d with additional production expected to be brought onstream during the third quarter of 2009.

Strategic has forward momentum after closing recent deals and building a new team. The world class sub-surface technical team is currently identifying high impact prospects in Western Canada and international regions.

Further information with respect to the Corporation can be found on its new 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 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