Strategic Oil & Gas Ltd. Announces Material Growth in Reserves and Muskeg Stack Resource Recognition
(firmenpresse) - CALGARY, ALBERTA -- (Marketwired) -- 07/10/13 -- STRATEGIC OIL & GAS LTD. (TSX VENTURE: SOG) ("Strategic" or the "Company") is pleased to announce the results of a full reserves evaluation of Strategic's assets and a resource assessment of the Muskeg Stack on a portion of the Company's assets at Steen River, as of June 1, 2013, prepared by the Company's independent reserve engineering firm, McDaniel & Associates Consultants Ltd. ("McDaniel"). The reports show continued corporate reserves growth and confirm an extensive oil resource play in the Muskeg Stack at Strategic's Steen River asset. The resource study which covered 25% of Strategic's Steen River land base, focused on the Muskeg Stack and has assigned resources to 37 sections on the northern rim of the Astrobleme. The Muskeg Stack is one of the six light oil producing zones on the rim of the Astrobleme.
HIGHLIGHTS
OUTLOOK
RESERVES
The Company's oil, natural gas and natural gas liquids ("NGL") reserves were fully evaluated by McDaniel as at June 1, 2013, and are summarized below.
Proved and probable producing reserves represent 50 percent of total proved and probable reserves. Strategic's light and medium oil, natural gas and NGL reserves were evaluated by McDaniel using McDaniel's product price forecasts effective April 1, 2013 prior to provision for financial risk management contracts, income taxes, interest, debt service charges and general and administrative expenses. The following table summarizes the net present value from recognized reserves at June 1, 2013, assuming various discount rates, and incorporating future development costs and abandonment liabilities. It should not be assumed that the discounted future net revenues estimated by McDaniel represent the fair market value of the Company's assets or future production from its assets.
McDaniel employed the following pricing, exchange rate and inflation rate assumptions as of June 1, 2013 in estimating the Corporation's reserves data using forecast prices and costs.
CONTINGENT AND PROSPECTIVE RESOURCES
In order to quantify the future reserve potential, a resource assessment was conducted on the Muskeg Stack, which covered 25% of the Company's assets in the Steen River area, by McDaniel with an effective date of June 1, 2013. The results of this assessment are summarized below:
Muskeg Stack reserves and contingent resources were determined using four-wells-per-section spacing over an area of 7,727 net acres along the north and west portions of the Steen Astrobleme. The contingent resources detailed above that were assigned to the Muskeg Stack were sub classified as economic contingent resources based on an economic analysis of expected future revenues and costs using the same McDaniel April 1, 2013 price forecast as used in the reserves evaluation. The primary contingency associated with these resources is development timing.
Prospective resources were determined using four-wells-per-section spacing over an area of 15,716 net acres along the north and west portions of the Steen Astrobleme. Additional drilling is required to move these resources into the discovered category. There are currently six productive zones in this area; the resource assessment covers only the Muskeg Stack.
Stock Option Grant
Strategic granted 175,000 options at an exercise price of $1.13 to a director of the Company. Each option entitles the holder to acquire an equivalent number of common shares of the Company for a period of five years and was issued in accordance with the Company's incentive stock option plan.
ABOUT STRATEGIC
Strategic is a well-capitalized junior oil and gas company committed to growth by exploiting its light oil assets in Canada. Strategic 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.
ADDITIONAL INFORMATION
Additional information is also available at and at .
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) future development costs; (ii) resource estimates and uncertainties surrounding those estimates, (iii) current and anticipated production rates; (iv) estimates of reserves, reserve values, future oil and gas prices, and future abandonment costs; (v) estimates cash flows; 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, 2012 and other documents filed with Canadian provincial securities authorities and are available to the public at . 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. Strategic's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements or if any of them do so, what benefits that Strategic will derive there from. 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.
Definitions of Resources
The following are excerpts from the definitions of resources and reserves, contained in Section 5 of the COGE Handbook, which is referenced by the Canadian Securities Administrators in National Instrument 51-101, "Standards of Disclosure for Oil and Gas Activities".
Discovered Petroleum Initially-In-Place (equivalent to Discovered Resources) - is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of Discovered Petroleum Initially-In-Place includes production, reserves, and contingent resources; the remainder of the volume is unrecoverable.
Undiscovered Petroleum Initially-In-Place (equivalent to Undiscovered Resources) - is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered. The recoverable portion of Undiscovered Petroleum Initially-In-Place is referred to as Prospective Resources; the remainder is classified as unrecoverable.
Contingent Resources - are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be commercially recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. Contingent resources are further classified in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status.
There is no certainty that any portion of the contingent resources will be developed, nor whether it will be commercially viable to produce any portion of the resources.
Prospective Resources - are those quantities of petroleum estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective resources have both an associated chance of discovery and a chance of development. Prospective resources are further subdivided in accordance with the level of certainty associated with recoverable estimates assuming their discovery and development and may be sub-classified based on project maturity.
There is no certainty that any portion of the prospective resources will be discovered and developed, nor whether it will be commercially viable to produce any portion of the resources.
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.
Contacts:
Strategic Oil & Gas Ltd.
Gurpreet Sawhney, MBA, MSc., PEng.
President and Chief Executive Officer
403.767.2949
403.767.9122 (FAX)
Strategic Oil & Gas Ltd.
Sean Hayes, PhD, PGeol
Chief Operating Officer
403.767.2946
403.767.9122 (FAX)
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Datum: 10.07.2013 - 23:29 Uhr
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News-ID 277360
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