Strategic Oil&Gas Ltd. announces that, in response to the recent downturn in commodity prices, the Company has made several changes to its cost structure and capital spending programs to preserve financial flexibility and enhance profitability:
•The Company prudently elected to stop the winter Muskeg drilling program in order to preserve capital. One Muskeg horizontal well (13-31) was drilled and completed in January 2015 and is currently undergoing tie-in operations.
•Approximately 700 Boe/d of production has been shut-in by suspending operations at Bistcho, Cameron Hills and Larne, which are not economic at current commodity prices. The shut-in is expected to increase corporate cash flows by over $3 million in 2015, improve corporate netbacks and allow the Company to be focused on Marlowe.
•The Company has reduced its office and field staff by approximately 35% in order to remain competitive in this low price environment. Strategic would like to thank those individuals affected for their past contributions and wish them well in future endeavors.
•Strategic is currently in the process of formulating its 2015 capital budget and production guidance and will provide an update on those activities when available.