Strategic Oil & Gas Ltd.

March 31, 2006 11:51 ET

Strategic Oil & Gas Ltd.: Wyoming Property Acquisition

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 31, 2006) - Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Company") announces that it has closed the acquisition of a 22.5% interest in a prospective section of land in the Greater Green River Basin in southwestern Wyoming. The Company will pay US$1.8 million for the property, US$100,000 that was paid on closing and US$1,700,000 due at the end of April, 2006.

The property is located in the Pinedale area and offsets the prolific Jonah/Pinedale producing fields. The prospect also has extensive three-dimensional seismic coverage. Drilling will target the same upper cretaceous Lance formation producing in the offsetting Jonah/Pinedale fields. Productive gas reservoirs in the Lance Formation of the Pinedale Anticline consist predominantly of amalgamated channel fill sandstones deposited in braided stream environments. These sandstones occur within the upper portion of an overpressure cell related to gas saturation build-up in low-permeability strata. Approximately 150-300 ft. of net productive sandstone can exist within the Lance at any one location. High gas saturations have been observed in nearly all sandstone intervals that occur within the overpressure cell. The U.S. government has indicated reserves of half a trillion cubic feet of natural gas-in place per 640 acre section in the Pinedale Field in the Green River Basin along the geological feature known as the Pinedale Anticline.

Starting as early as this June, Strategic has agreed to drill a minimum of two wells with JED Oil Inc. (AMEX - JDO), which owns the remaining 77.5% of the prospect.

Strategic continues to evaluate further prospects in the Western Canadian Sedimentary Basin and the Western United States.

The Company also announced that it will undertake a private placement of up to $6,400,000 through the sale of 4,000,000 common share units at a price of $1.60 per unit. Each unit will consist of one common share and one-half of a common share purchase warrant. Each whole warrant is exercisable at a price of $2.00 for a period of one year from the date of closing. Proceeds will be used to fund drilling on the Company's properties in Canada and Wyoming, and for property acquisitions.

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.

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