Strategic Oil & Gas Ltd.

November 01, 2006 14:20 ET

Strategic Oil & Gas Ltd.: Drilling Update

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 1, 2006) - Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Company") wishes to provide an update of its Canadian and Wyoming exploration projects.

Strategic has been advised by Gladius Energy Inc. that as a result of the success of its initial multi-well drill program in the Chedderville area of Alberta, an additional well has been spudded on earned lands. Strategic holds a 26.5% interest in the oil well which is expected to take three weeks to drill. In addition, the Company's most recent wells in the Strachan and Pembina areas in Alberta are currently being completed and are expected to be in production prior to year end.

In Pinedale, Wyoming the water zone encountered in the first well which was drilled (October 11/06 news) has now been isolated by a packer assembly. The well is currently producing 415 mcf/d of gas, 5 bbls/d of condensate and 40 bbls/d of water from the Mesa Verde and Lance formations. The second well is currently producing at a rate of 350 mcf/d of gas with 5 bbls/d of condensate and 100 bbls/d of water. Although success of the first two Pinedale wells has not met expectations, the Company believes that the Jonah/Pinedale lands represent significant potential and discussions have begun to pursue alternative strategies to further the development of the project.

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 is under no obligation to update or alter any forward looking statement. These risks include operation and geological risks, the ability of the Company to raise necessary funds for exploration and the fact that the Company does not operate its properties. 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 or Cell: (604) 780-9810