Strategic Oil & Gas Ltd
TSX VENTURE : SOG

Strategic Oil & Gas Ltd

November 18, 2010 11:51 ET

Strategic Oil & Gas Ltd. Receives Proceeds of $19.8 Million on Exercise of Warrants

CALGARY, ALBERTA--(Marketwire - Nov. 18, 2010) - Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Company") is pleased to announce that 33,258,091 of its $0.60 and $0.70 warrants have been exercised for proceeds of $19,832,775, including all warrants that expire or expired by November 20, 2010.

As announced previously, the Company closed a "bought deal" financing agreement in October 2010, resulting in the issuance of 18,300,000 common shares at $0.90 each and 5,232,500 flow-through common shares at $1.10 each for gross proceeds of $22.2 million. 

Proceeds from the October 7, 2010 financing, combined with the proceeds of $19.8 million from the exercise of warrants described above, leaves Strategic with working capital in excess of $32.0 million at this time. The Company anticipates having in excess of $34 million of working capital at year-end. In addition, Strategic has an unutilized line of credit of $5.0 million and no debt.

This cash will be used to fund an aggressive development program at Maxhamish in 2011, drilling opportunities at Taber and Conrad, and for new opportunities the Company is currently assessing.

As a result of this series of warrants being exercised, Strategic will have 125.3 million common shares outstanding.

About Strategic

Strategic is a junior oil and gas company with producing properties located in Maxhamish, northeast BC and Southern and Central Alberta. Production capability is currently over 350 boe/d.

Strategic's highly regarded subsurface technical team is primarily focused on implementing development plans for the Maxhamish project and its southern Alberta properties, while continuing to review other high impact prospects.

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.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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