Strategic Oil & Gas Ltd. Significantly Increases Its Bank Line
CALGARY, ALBERTA, Jun 11, 2012 (MARKETWIRE via COMTEX) –
Strategic Oil Gas Ltd. (“Strategic” or the “Company”) (tsx
venture:SOG) is pleased to announce that the Company’s primary
lender, Alberta Treasury Branches (“ATB”), has approved an increase
to its available revolving operating line of credit from $21 million
to $50 million, a 138% increase.
The increase is scheduled to occur in 3 steps, $38 million
immediately, $44 million on October 31, 2012 and $50 million on
January 31, 2013. The increase in value of the facility is primarily
attributed to the significant increase in the high netback light oil
production as a result of the successful drilling program at Steen
River. The increase continues to provide Strategic with significant
financial flexibility for the remainder of 2012 and into 2013.
Strategic currently has no debt and plans to finance a major portion
of the remaining 2012 drilling programs at Steen, Maxhamish and Amber
using cash on hand and cash flow. Strategic’s current production is
2800 boe/d (88% oil), and remains on track to meet its exit
production guidance of 3000 boe/d.
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.
Further information with respect to the Company can be found on its
FORWARD-LOOKING INFORMATION: Certain information set forth in this
document, including management’s assessment of future plans and
operations, contains forward-looking statements. By their nature,
forward-looking statements are subject to numerous risks and
uncertainties, some of which are beyond our control. Those risks
include, without limitation, the effect of general economic
conditions, risks associated with oil and gas exploration,
development, production, marketing and transportation, loss of
markets, industry conditions and competition, volatility of commodity
prices, currency fluctuations, imprecision of reserve estimates,
environmental risks, competition from other industry participants,
the ability to access qualified personnel and oilfield services,
decisions by regulators, and the ability to access sufficient capital
from internal and external sources. Readers are cautioned not to
place undue reliance on the forward-looking statements as the
assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be
imprecise and actual results, performance or achievements could
materially differ from those expressed or implied in such
forward-looking statements and accordingly, no assurance can be given
that any of the events anticipated by forward looking statements will
transpire or occur, or if any of them do so, what benefit Strategic
will derive there from. The Company does not assume the obligation to
revise or update this forward-looking information after the date of
this release or to revise such information to reflect the occurrence
of future unanticipated events, except as may be required under
applicable securities laws.
BOE PRESENTATION: Barrel (“bbl”) of oil equivalent (“boe”) amounts
may be misleading particularly if used in isolation. All boe
conversions in this report are calculated using a conversion of six
thousand cubic feet of natural gas to one equivalent barrel of oil (6
mcf=1 bbl) and is based on an energy conversion method primarily
applicable at the burner tip and does not represent a value
equivalency at the well head.
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. Arn Schoch CEO and Chairman 403.870.1245 (cell) or 403.767.2950 403.767.9122 (FAX) Strategic Oil Gas Ltd. Gurpreet Sawhney President 403.767.2949 403.767.9122 (FAX) Strategic Oil Gas Ltd. 1800, 510 5th Street SW Calgary, AB T2P 3S2 www.sogoil.com
SOURCE: Strategic Oil Gas Ltd.
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