CALGARY, ALBERTA--(Marketwire - Nov 21, 2012) - Strategic Oil & Gas Ltd. ("Strategic" or the "Company") (TSX VENTURE:SOG) is pleased to announce it has filed its unaudited interim financial statements and related Management''s Discussion and Analysis ("MD&A) for the quarter ended September 30, 2012. Selected financial and operational information is outlined below and should be read in conjunction with Strategic''s unaudited interim financial statements and the related MD&A which are available for review at www.sogoil.com and at www.sedar.com.
| Financial and Operational Highlights | |||||||||
| Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||
| 2012 | 2011 | 2012 | 2011 | ||||||
| Financial ($000''s, except per share amounts) | |||||||||
| Petroleum and natural gas sales | 12,520 | 5,200 | 40,649 | 15,246 | |||||
| Funds from (used in) operations (1) | 4,349 | 1,011 | 16,443 | (79 | ) | ||||
| Per share basic | 0.02 | 0.01 | 0.09 | - | |||||
| Per share diluted | 0.02 | 0.01 | 0.09 | - | |||||
| Net income (loss) | (718 | ) | (1,395 | ) | 1,129 | (8,453 | ) | ||
| Per share basic | (0.00 | ) | (0.01 | ) | 0.01 | (0.06 | ) | ||
| Per share diluted | (0.00 | ) | (0.01 | ) | 0.01 | (0.06 | ) | ||
| Capital expenditures (excluding acquisitions) | 14,082 | 14,851 | 47,144 | 33,382 | |||||
| Operating | |||||||||
| Production | |||||||||
| Crude oil Bbl per day) | 1,734 | 595 | 1,791 | 564 | |||||
| Natural gas (Mcf per day) | 1,178 | 1,916 | 1,537 | 1,799 | |||||
| Barrels of oil equivalent (Boe per day) | 1,930 | 914 | 2,047 | 863 | |||||
| Average realized price | |||||||||
| Crude oil ($ per Bbl) | 76.84 | 82.42 | 80.92 | 86.40 | |||||
| Natural gas ($ per Mcf) | 2.45 | 3.91 | 2.21 | 3.98 | |||||
| Barrels of oil equivalent ($ per Boe) (2) | 70.52 | 61.83 | 72.46 | 64.69 | |||||
| Netback per Boe ($) | |||||||||
| Petroleum and natural gas sales | 70.52 | 61.83 | 72.46 | 64.69 | |||||
| Royalties | (10.69 | ) | (8.77 | ) | (10.96 | ) | (14.08 | ) | |
| Operating expenses | (19.51 | ) | (23.46 | ) | (20.41 | ) | (33.33 | ) | |
| Transportation expenses | (3.19 | ) | (2.25 | ) | (2.99 | ) | (2.08 | ) | |
| Operating Netback ($ per Boe) | 37.13 | 27.35 | 38.10 | 15.20 | |||||
| Common Shares (000''s) | |||||||||
| Common shares outstanding, end of period | 186,140 | 139,009 | 186,140 | 139,009 | |||||
| Weighted average common shares (basic) | 186,884 | 139,009 | 186,996 | 138,820 | |||||
| Weighted average common shares (diluted) | 187,450 | 139,009 | 187,761 | 138,820 | |||||
| (1) | Management uses funds from operation and working capital surplus (deficit) and operating netback to analyze operating performance and leverage. These terms, as presented, do not have any standardized meaning prescribed by International Financial Reporting Standards and therefore may not be comparable with the calculation of similar measures for other entities. |
| (2) | Boe means barrel of oil equivalent. All Boe conversions in this report are derived by converting natural gas to oil equivalent at a ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent. Boe may be misleading, particularly if used in isolation. A Boe conversion rate of 1 Boe: 6 Mcf is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. |
| ACCOMPLISHMENTS |
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Production was 1,930 boe/d which is a 111% increase from the third quarter of 2011 despite service interruptions associated with forest fires, restrictions on Pembina''s Peace Pipeline and a plant turnaround. Disruptions in service equated to approximately seventeen (17) days of downtime.
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Oil and natural gas liquid production increased 191% to 1,734 boe/d, compared to 595 boe/d in the third quarter of 2011.
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Oil and natural gas liquids production was 90% of total production in the third quarter of 2012 compared to 65% in the comparable period of 2011.
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Third quarter combined oil and natural gas sales was $12.520 million with cash flow from operations of $4.349 million ($0.02 per basic share) a 141% and 330% increase from the comparable period in 2011, respectively.
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The field netback was $37.13 per boe, a 36% increase from the comparable period in 2011.
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Eleven of the thirteen wells drilled during the nine months ended September 30, 2012, were tied in and on production. The remaining two will be on production in the fourth quarter of 2012. A minimum of four additional wells are planned for the last quarter of 2012.
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Total capital expenditures invested for the nine months ended September 30, 2012, $47.144 million representing 79% of its budgeted annual capital program focusing on drilling and infrastructure activities compared to $33.382 million in a comparable period.
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Effective September 24, 2012, the Corporation''s current line of credit was increased to $48.5 million, ahead of the October 31, 2012 review date.