Strategic Oil and Gas Ltd SOGFF

RE:News Sept 15

[arielpls]

arielpls wrote:

CALGARY, ALBERTA--(Marketwired - Sept. 15, 2014) - Strategic Oil & Gas Ltd. ("Strategic" or the "Company") (TSX VENTURE:SOG) announces that two recently completed Muskeg wells produced at a combined rate of 1,587 boe/d (83% oil). Strategic is also pleased to announce the addition of Mr. Michael Graham as an independent member to the Company's board of directors.

Two west Muskeg wells 15-24 and 1-25 were recently brought on production and are free flowing oil wells. Over the last three days of the production test, well 15-24 produced at an average daily rate of 848 boe/d (81% oil) and well 1-25 produced at an average daily rate of 614 boe/d (88% oil). The two wells have recovered approximately 30% of the load fluid and are still cleaning up. The combined daily test rate for the two wells over the last 24 hours was 1,587 boe/d (83% oil).

Muskeg well 11-24 has produced 29,000 boe in the first 51 days with limited decline. Corporate production excluding the two new Muskeg wells is 3,500 boe/d. The two new Muskeg wells (15-24, 1-25) have added flush production increasing current corporate production to over 4,600 boe/d. Two north Muskeg wells (2-26 and 14- 23) have been drilled and completed and a west Muskeg well (1-23), is currently being drilled. Strategic plans to drill up to six additional wells during the fourth quarter of 2014.

Strategic continues to realize drilling efficiencies with the five wells drilled averaging 17 days per well. The Company is executing on its cost reduction strategy with its most recent wells averaging $3.7 million. Strategic continues to target 25% production growth with a continuous one rig capital program, drilling up to 23 wells in 2015 and will provide more formal guidance once the annual budgeting process is complete.

In summary, the 11-24 well had a flow rate of 511 Boed September 2. Now he has a flow rate of 568 Boed !!! 

 

Before the production of two new wells, production was approximately 3500 Boed. With the addition of two new wells (15-24 and 1-25), they will surpass the 4600 Boed! 

 

Remember that the goal was to early 2014 Boed 4600 and that this had been reduced to 4000 Boed. The price had dropped. Now, they aim higher than 4600 Boed. 
 

Last thing to consider. They finished drill two wells (2-26 and 14-23) and 1-23 well is currently being drilled. They want to drill 6 more in Q4. I think the price will go up by the end of the year!