CALGARY, ALBERTA–(Marketwired – Feb. 7, 2017) – Strategic Oil & Gas Ltd. (“Strategic” or the “Company”) (TSX VENTURE:SOG) announces it has achieved its exit production target for year-end 2016 and provides an operations update.
Strategic tied in three Muskeg wells during the fourth quarter of 2016, and has recently tied in the step out Muskeg well 14-35. With the recent Muskeg wells drilled and tied-in, current corporate production exceeds the company’s 2016 exit rate guidance of 2,800 boe/d.
Strategic initiated its $30 million capital program for the first half of 2017 which includes six Muskeg horizontal wells. The Company is now drilling its third Muskeg well and maintains its production guidance of 4,000 boe/d exiting the first half of 2017. Strategic’s current capital position remains strong and the company is positioned for growth.
With respect to the Company’s outstanding convertible debentures, Strategic has elected to pay the interest in kind for the semi-annual interest payment due on February 28, 2017. Approximately $3.7 million in additional debentures will be issued, which will be convertible into common shares of Strategic at a conversion price of $0.135 per common share.
ABOUT STRATEGIC OIL & GAS
Strategic is a junior oil and gas company committed to becoming a premier northern oil and gas operator by exploiting its light oil assets primarily in northern Alberta. The Company relies on its extensive subsurface and reservoir experience to develop its asset base and grow production and cash flows while managing risk. The Company maintains control over its resource base through high working interest ownership in wells, construction and operation of its own processing facilities and a significant undeveloped land and opportunity base. Strategic’s primary operating area is at Marlowe, Alberta. Strategic’s common shares trade on the TSX Venture Exchange under the symbol SOG.