Strategic Oil & Gas Ltd.
TSX VENTURE : SOG

December 11, 2007 09:34 ET

Strategic Oil & Gas Ltd.: Private Placement and Acquisition Announced

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 11, 2007) - Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Company") wishes to announce that it will, subject to regulatory approval, issue up to 5,000,000 units at $0.40 per unit, for total gross proceeds of $2,000,000. Each unit consists of one common share and one half of a warrant. Each warrant will entitle the holder to subscribe for an additional common share for $0.60 for 12 months from closing. In addition, the Company will issue up to 3,000,000 commons shares at $0.50 per share on a flow-through basis, for total net proceeds of $1,500,000. This private placement will be non-brokered, but the Company anticipates paying compensation to finders and brokers that provide assistance in the placement.

Funds from this private placement will be used to fund the acquisition of a 5% working interest in approximately 160,000 acres in the northwestern Alberta, including all infrastructure and current production, and the Company's resulting obligations in respect to the ongoing 15 well winter drill program, ten targeting Keg River oil and five targeting Slave Point natural gas. The purchase includes an area of mutual interest covering over 1,000,000 acres of open Crown land. Strategic is advised that production from the property will be approximately 2700 BOEs (5% - 135 BOE) by December 31, 2007.

The Company is also in advanced stages of negotiations pertaining to a significant international opportunity, about which it anticipates making further announcements in early 2008.

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.

Boe's may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf of natural gas to 1 barrel of crude oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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
    President
    (604) 685-1349 or Cell: (604) 780-9810
    Email: arn@helix.net