Strategic Oil & Gas Ltd.

August 15, 2006 16:05 ET

Strategic Oil & Gas Ltd.: Drilling Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 15, 2006) - Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Company") wishes to provide an update to drilling in the Pinedale/Jonah area in Wyoming and in Alberta.

The Company has made significant progress on its 22.5% owned multi-well program with Jed Oil Inc. (AMEX:JDO), in the Pinedale/Jonah area of Wyoming. The first well drilled in the Pinedale area encountered multiple pay zones. Strategic has recently finished completing and fracture stimulating this well and has completed the installation of a pipeline to transport its gas to market. The well is currently being flowed back through a choke to recover the fluid used during the fracture stimulation and will be tied in immediately. Drilling of a second well to delineate this discovery has commenced, and two additional locations permitted. Strategic is currently preparing an application to drill on 20 acre spacing on its Pinedale acreage. The downspacing would allow the drilling of up to 32 wells within the Company's current land holdings.

The Company has also recently drilled two wells, one near the town of Sylvan Lake and one located in the Minnehik Buck Lake area, both in central Alberta. Multiple zone completion programs have been undertaken, with fracture stimulation and tie-ins currently being completed on both these gas wells. Strategic is paying 35% of the drilling and completion cost to earn 26.25%. Further information on these wells will be released in the near future.

Strategic continues to evaluate further prospects in the Western Canadian Sedimentary Basin and the Western United States.

Certain information regarding the Company contained herein may constitute forward looking statements. Forward looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although the Company believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward looking statements. The Company's forward looking statements are expressly qualified in their entirety by this cautionary statement.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the contents of this news release.

Contact Information

  • Strategic Oil & Gas Ltd.
    Arn Schoch
    (604) 685-1349
    Cell: (604) 780-9810