CALGARY, ALBERTA--(Marketwired - Dec. 22, 2016) - Strategic Oil & Gas Ltd. ("Strategic", or the
"Company") (TSX VENTURE:SOG) announces that the Company has closed its recently announced non-brokered private placement (the
"Private Placement").
The Company issued a total of 337 million common shares at a price of $0.12 per common share for gross proceeds of
$40.4 million. Shares issued are subject to a hold period expiring April 24, 2016. Proceeds from the Private Placement
will be applied to the execution of the Company's $30 million capital program for the first half of 2017. Capital will be
directed primarily to drill six Muskeg wells at Marlowe adjacent to the wells drilled during 2016. The capital program also
includes building road and pipeline to tie-in the 14-35 Muskeg well. Strategic is well positioned to execute on this 2017 program
while delivering continued efficiencies and cost savings, which are expected to be repeatable. Anticipated production
exiting the first half of 2017 is 4,000 boe/d.
ABOUT STRATEGIC OIL & GAS
Strategic is a junior oil and gas company with a dominant land position in Canada. The Company is committed to
building a premier oil producer through its high-quality, concentrated reserve base, and constructing an operated integrated
sales infrastructure to support the Company's significant future growth. Strategic's common shares trade on the TSX Venture
Exchange under the symbol SOG.
ADDITIONAL INFORMATION
Additional information, including the Company's recently updated corporate presentation, is also available at
www.sogoil.com and at www.sedar.com.
Reader Advisories
This news release includes certain information, with management's assessment of Strategic's future plans and
operations, and contains forward-looking statements which may include some or all of the following: (i) the capital program and
the Company's position with respect to completing the capital program; (ii) production levels and the effect of Muskeg drilling
activities on production; (iii) capital spending activities to take place in 2017; (iv) repeatability of cost savings and
efficiencies; and (v) use of proceeds from a private placement, which are provided to allow investors to better understand the
Company's business. By their nature, forward-looking statements are subject to numerous risks and uncertainties; some of which
are beyond Strategic's control, including the impact of general economic conditions, industry conditions, volatility of commodity
prices, currency fluctuations, imprecision of reserve estimates, environmental risks, changes in environmental tax and royalty
legislation, competition from other industry participants, the lack of availability of qualified personnel or management, stock
market volatility and ability to access sufficient capital from internal and external sources, and other risks and uncertainties
described under the heading 'Risk Factors' and elsewhere in the Company's Annual Information Form for the year ended December 31,
2015 and other documents filed with Canadian provincial securities authorities and which are available to the public at www.sedar.com. Readers are cautioned that the assumptions used in the preparation of
such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue
reliance should not be placed on forward-looking statements. The principal assumptions Strategic has made includes security of
land interests; drilling cost stability; royalty rate stability; oil and gas prices to remain in their current range; finance and
debt markets continuing to be receptive to financing the Company and industry standard rates of geologic and operational success.
Actual results could differ materially from those expressed in, or implied by, these forward-looking statements. Strategic
disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by law.
Basis of Presentation
This discussion and analysis of Strategic's oil and natural gas production and related performance measures is presented on a
working-interest, before royalties basis. For the purpose of calculating unit information, the Company's production and reserves
are reported in barrels of oil equivalent (Boe) and Boe per day (Boe/d). Boe may be misleading, particularly if used in
isolation. A Boe conversion ratio for natural gas of 6 Mcf: 1 Boe has been used, which is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not necessarily represent a value equivalency at the wellhead.
As the value ratio between natural gas and crude oil based on the current prices of natural gas and crude oil is significantly
different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of
value.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of
the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.