Strategic Oil & Gas Ltd.
TSX VENTURE : SOG
March 13, 2012 05:00 ET
Strategic Oil & Gas Ltd. Announces Significant Light Oil Discovery
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".