Strategic Oil & Gas Ltd
TSX VENTURE : SOG

Strategic Oil & Gas Ltd

September 28, 2011 16:02 ET

Strategic Oil & Gas Ltd Resumes Oil Delivery to the Rainbow Pipeline; Production for September Exceeds 1250 BOED

CALGARY, ALBERTA--(Marketwire - Sept. 28, 2011) - Strategic Oil & Gas Ltd. ("Strategic" or the "Company") (TSX VENTURE:SOG) is pleased to announce that it has resumed oil delivery at the Rainbow pipeline. The production for the month of September exceeds 1250 BOED.

Corporate Production

The Rainbow pipeline which transports the Corporation's Steen River crude oil to market was shut in due to a pipeline breach which occurred in late April, 2011. As a result Strategic was forced to shut in 75% of its production at Steen River. The pipeline resumed operation August 29, 2011. Strategic has been transporting oil to the Rainbow pipeline for the past 30 days.

During the month of September Strategic's estimated production has exceeded 1250 BOED.

Steen River

Strategic has drilled the first horizontal well in the Sulphur Point zone at Steen River. The well is currently being completed.

Strategic is currently drilling its third vertical Keg River well at Steen River. This is the first vertical Keg River well in the 2H11 drilling program at Steen River.

Maxhamish

Two wells were drilled in the 3Q11 at Maxhamish. The first well, AD18J, was rig released on August 14, 2011 and the second well, B19J, was rig released on September 24, 2011. AD18J drilled for a horizontal length of over 1400 m. This horizontal well has been multi-stage frac'd and is currently being swabbed.

The B19J well drilled for a horizontal length over 1600 m. This well is scheduled to be multi-stage frac'd in October 2011.

About Strategic

Strategic is a well capitalized junior oil and gas company with an unutilized line of credit, committed to growth by exploiting its light oil assets in Maxhamish, northeast BC and Steen River in northwest Alberta. Strategic's highly regarded subsurface technical team is primarily focused on implementing development plans for its light oil properties, while continuing to review other high impact light oil resource plays. Strategic's common shares trade on the TSX Venture Exchange under the symbol SOG.

Further information with respect to the Company can be found on its website at www.sogoil.com.

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 there from. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

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.

Contact Information

  • Strategic Oil & Gas Ltd.
    Arn Schoch
    CEO & Chairman
    403.718.0183 ext. 242 or Cell: 403.870.1245
    403.718.0184 (FAX)

    Strategic Oil & Gas Ltd.
    Gurpreet Sawhney
    President
    403.718.0183 ext. 227 or Cell: 403.606.3727
    403.718.0184 (FAX)

    Strategic Oil & Gas Ltd.
    1800, 510 5th Street SW
    Calgary, AB T2P 3S2
    www.sogoil.com