Strategic Oil & Gas Ltd. Provides Operations Update
24 April 2014 - 9:12AM
Marketwired
Strategic Oil & Gas Ltd. Provides Operations Update
CALGARY, ALBERTA--(Marketwired - Apr 23, 2014) - Strategic Oil
& Gas Ltd. ("Strategic" or the "Company") (TSX-VENTURE:SOG) is
pleased to provide the following operations update. The Company has
completed its 2014 winter drilling program, with a total of three
new Muskeg Stack horizontal wells drilled.
Corporate production averaged
4,016 boe/d for the week prior to bringing the latest Muskeg Stack
well online. The following is an update of the three Muskeg stack
wells drilled in the first quarter of 2014:
- The 16-34 well was brought on production in early March, has
produced over 11,000 bbl of oil and is currently producing 245
boe/d (90% oil).
- The 13-24 well was brought on production in late March, has
produced over 6,000 bbl of oil and is currently producing 240 boe/d
(90% oil).
- The 10-24 well was drilled to a total measured depth of 3,041
metres with 1,438 metres of horizontal section and a 15 stage
completion program. Over a 137 hour production test the well
produced at an average rate of 460 bbls/d and 1.8 MMcf/d of
associated solution gas for an oil equivalent rate of 767 boe/d,
with an average surface wellhead pressure of 2,500 kPa. The well
has been tied-in and is producing directly into the newly
constructed 6 inch pipeline. See Reader Advisories at the
bottom of this news release.
Strategic continues its ongoing efforts to decrease costs and
enhance profitability. The Company has reduced its office salary
expense by approximately 15 percent with the elimination of several
senior office staff positions. These reductions were necessary to
remain competitive with industry peers. We would like to thank
those individuals affected for their past contributions and wish
them well in their future endeavors.
ABOUT STRATEGIC
Strategic is a junior oil and gas company committed to growth by
exploiting its light oil assets in Canada. Strategic's common
shares trade on the TSX Venture Exchange under the symbol SOG.
ADDITIONAL INFORMATION
Additional information, including the Company's recently updated
corporate presentation, is also available at www.sogoil.com and at
www.sedar.com.
Reader Advisories
Any references in this news release to initial flow-back or
production test rates are useful in confirming the presence of
hydrocarbons, however, such rates are not necessarily determinative
of the rates at which such wells will commence production. These
flow-back or test results may not be indicative of long-term well
performance or ultimate recovery. While encouraging, readers are
cautioned not to place reliance on such rates in estimating the
aggregate production for the Company.
Forward-Looking Statements
This news release includes certain information, with
management's assessment of Strategic's future plans and operations,
and contains forward-looking statements which may include some or
all of the following: (i) anticipated production rates; (ii)
production from new wells; and (iii) the Company's competitiveness
relative to industry peers; which are provided to allow investors
to better understand the Company's business. By their nature,
forward-looking statements are subject to numerous risks and
uncertainties; some of which are beyond Strategic's control,
including the impact of general economic conditions, industry
conditions, volatility of commodity prices, currency fluctuations,
imprecision of reserve estimates, environmental risks, changes in
environmental tax and royalty legislation, competition from other
industry participants, the lack of availability of qualified
personnel or management, stock market volatility and ability to
access sufficient capital from internal and external sources, and
other risks and uncertainties described under the heading 'Risk
Factors' and elsewhere in the Company's Annual Information Form for
the year ended December 31, 2013 and other documents filed with
Canadian provincial securities authorities and are available to the
public at www.sedar.com. Readers are cautioned that the assumptions
used in the preparation of such information, although considered
reasonable at the time of preparation, may prove to be imprecise
and, as such, undue reliance should not be placed on
forward-looking statements. The principal assumptions Strategic has
made includes security of land interests; drilling cost stability;
royalty rate stability; oil and gas prices to remain in their
current range; finance and debt markets continuing to be receptive
to financing the Company and industry standard rates of geologic
and operational success. Actual results could differ materially
from those expressed in, or implied by, these forward-looking
statements. Strategic disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
Basis of Presentation
This discussion and analysis of Strategic's oil and natural gas
production and related performance measures is presented on a
working-interest, before royalties basis. For the purpose of
calculating unit information, the Company's production and reserves
are reported in barrels of oil equivalent (Boe) and Boe per day
(Boed). Boe may be misleading, particularly if used in isolation. A
Boe conversion ratio for natural gas of 6 Mcf: 1 Boe has been used,
which is based on an energy equivalency conversion method primarily
applicable at the burner tip and does not necessarily represent a
value equivalency at the wellhead. As the value ratio between
natural gas and crude oil based on the current prices of natural
gas and crude oil is significantly different from the energy
equivalency of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.
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.
Strategic Oil & Gas Ltd.Gurpreet Sawhney, MBA, MSc.,
PEng.President and CEO403.767.2949403.767.9122Strategic Oil &
Gas Ltd.Aaron Thompson, CAChief Financial
Officer403.767.2952403.767.9122www.sogoil.com
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