Strategic Oil & Gas Ltd. has achieved exit production of 1,880 boe per day (71% oil).

Production for the month of December averaged 1,655 boe per day, representing over a 400% increase from December, 2010. Four new wells were put on production during December 2011. The vertical Keg River well 102/15-22 is producing light oil with an initial 30 day production rates (IP30) of 355 boe per day. Strategic has contracted a second rig at Steen River which will enable the drilling of up to nine wells in 1Q12.

Strategic completed a $42.3 million financing on December 23, 2011 to fund its 2012 capital program of $60 million. At Steen River, Strategic acquired 43 sections (27,201 acres) with Sulphur Point light oil potential. At Amber, Strategic acquired 56 sections (35,741 acres) in northwestern Alberta Muskwa play fairway with light oil potential in two zones. Strategic is well positioned to exploit the light oil potential at Steen River, Maxhamish and Amber.

Strategic has drilled three Keg River vertical wells and one Sulphur Point horizontal well at Steen River during 4Q11. In January 2012, two new Keg River wells have been drilled and cased, another vertical Keg River and a horizontal Sulphur Point well are currently being drilled.

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