Strategic Oil & Gas Ltd. Announces Winter Drilling Program
December 18 2017 - 5:05PM
Strategic Oil & Gas Ltd. (“Strategic”, or the “Company”)
(TSXV:SOG) announces its Board of Directors has approved a $9
million capital program for the first half of 2018.
The Company is eager to commence its 2018 winter
drilling program focused on Muskeg wells at West Marlowe. Capital
spending will be directed primarily to drill, complete and tie-in
two Muskeg horizontal wells to continue developing Strategic’s high
potential light oil corridor. Strategic intends to reduce drilling
costs by using a monobore well design, and increase its completion
stage intensity in order to enhance well productivity. The Company
is adjusting its completion techniques to use a proven pinpoint
shiftable sleeve system and altering its frac technology to reduce
water usage by approximately 50%. The capital program also includes
minor facility and reclamation projects. Strategic believes that
these adjustments will improve initial production from the Muskeg
wells and reduce well costs, which would enhance the economics of
future drilling programs. The Company intends to fund the program
with cash on hand and cash flow from operations.
ABOUT STRATEGIC OIL &
GAS
Strategic is a junior oil and gas company with a
dominant land position in Canada. The Company is committed to
building a premier oil producer through its high-quality,
concentrated reserve base, and constructing an operated integrated
sales infrastructure to support the Company's significant future
growth. 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 AdvisoriesThis 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) the effect of drilling and completion techniques on
well costs, productivity and future drilling programs; (ii) planned
adjustments to drilling and completion operations; (iii) funding
for the capital program, 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, 2016 and other documents filed with
Canadian provincial securities authorities and which 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 PresentationThis 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 (Boe/d). 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.
For more information, please contact:
Cody SmithCOO and Interim CEO |
Aaron ThompsonChief Financial Officer |
Strategic Oil & Gas Ltd.1100, 645 7th Avenue SWCalgary, AB T2P
4G8 |
Strategic Oil & Gas Ltd.1100, 645 7th Avenue SWCalgary, AB T2P
4G8 |
Telephone: 403.781-2970Fax: 403.767.9122 |
Telephone: 403.767.2952Fax: 403.767.9122 |
Strategic Oil & Gas Ltd. (TSXV:SOG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Strategic Oil & Gas Ltd. (TSXV:SOG)
Historical Stock Chart
From Apr 2023 to Apr 2024