Strategic Oil & Gas Ltd. provide drilling results from the Keg River vertical well at Steen River.

KEG RIVER VERTICAL WELL: 100/15-22-122-21W5M

Strategic drilled its third successful Keg River Well in the North Marlowe oil pool at Steen River.

• Rate: The well has been on production for 11 days at stabilized test rates of between 225 to 250 BOEPD. IP30 is expected to exceed 200 BOEPD.

• Oil Cut: The well is producing 100% clean oil with associated solution gas.

• Pay: The well penetrated a dolomite zone with over 12 meters of net oil pay and is structurally the highest well in the pool.

• Pressure: The well tested close to virgin reservoir pressure.

• Pool: The well confirms the lateral extent of the oil pool and the porosity mapping derived from the 3D seismic.

• Cost: The well was drilled and completed for approximately $1.7million.

Strategic has a 100% working interest in the North Marlowe Keg River Pool and plans to drill three additional vertical Keg River wells in the first quarter of 2012.

Tags: Strategic Oil & Gas Ltd.