Strategic Oil & Gas Ltd.

August 03, 2005 09:39 ET

Strategic Oil & Gas Ltd.: Farmout, Participation and Equalization Agreement in Alberta Foothills

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 3, 2005) - Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("SOG") announces that it has entered into a Farmout, Participation and Equalization Agreement with an Alberta based oil and gas company to participate in the drilling, completing and equipping of an exploratory natural gas well located in the liquids-rich Deep Basin of the Alberta Foothills. This deep Foothills region of the Western Canadian Sedimentary Basin contains some of the most prolific multi-zone gas wells in North America as well as some of the largest accumulations of oil and gas reserves. The area has long been a focus area for exploration and production companies and continues to be today, with recent announcements highlighting discoveries of significant new gas pools. The prospect is covered by high resolution 3D seismic and is close to gas processing facilities, enabling a discovery to be quickly placed on production.

Under the terms of the agreement SOG will earn 25% of the Test Well, to be drilled to an estimated total depth of 3700 meters subsurface. It is anticipated that the Test Well will spud on or before October 1, 2005 (subject to surface access, rig availability and all regulatory approvals). SOG's budgeted expenditure on the drilling and completion of this well is $850,000.

In addition to this project, the Company is at an advanced stage of negotiations on several other material oil and gas opportunities in both Alberta and the Western United States.


"Arn Schoch"


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Contact Information

  • Strategic Oil & Gas Ltd.
    Arn Schoch
    (604) 421-2420