CALGARY, ALBERTA--(Marketwire - March 13, 2012) - Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Company") is pleased to announce a significant light oil discovery and provides an operational update.
LIGHT OIL DISCOVERY
An exploratory vertical well drilled at Steen River has resulted in a new light oil discovery. The discovery well was tested over a four day period. The well flowed on average 733 barrels of 36 degrees API oil for 7-8 hours each day. Over a 29 hour test the well flowed a total of 3083 boe (2933 bbl of oil and 149 boe of associated gas). This well is scheduled to be on production in early April 2012.
Strategic expects to bring the well on production at an oil rate of approximately 300-500 bbl per day. Although at early stages of appraisal, results of the discovery well reinforce management's view that significant light oil potential exists in similar structures at Steen River.
Management is pleased with the results and advises caution as these are initial results from a step out exploratory well on a new structure.
The Keg River vertical well 102/15-22 which was drilled in December 2011 and previously announced with an IP30 of 355 BOEPD, has now been on production for over 60 days. This well has produced over 23,000 barrels of oil and is still producing at rates over 355 BOEPD.
Strategic has drilled and completed six wells at Steen River in the first quarter of 2012. Two of the six wells drilled are now on production. Each well is producing at rates over 300 barrels of oil per day. The remaining four wells are being tied in and will be on production in April 2012.
Corporate production is currently over 2400 BOEPD (~80% oil) with the two new wells on production.
Strategic is a junior oil and gas company committed to growth by exploiting its light oil assets in Maxhamish, northeast British Columbia and Steen River and Amber 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.