Press

Strategic Oil & Gas Ltd. Announces New Well Results and First Half of 2017 Budget

Posted by OilVoice Press - OilVoice

09-Dec-2016


Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) announces its recent well results, capital budget for the first half of 2017 and provides a financing update.

MUSKEG WELL 14-12 TESTS AT 810 BOED

Strategic tested a third successful Muskeg well 14-12 at an average rate of 810 boe/d (59% oil) over a 4 day production period. On November 1, 2016 the company announced results from the Muskeg well 2-13 which tested 1,057 boe/d (54% oil) over 7 days. Both new wells have been tied in, equipped with artificial lift and are producing to Company-owned pipelines and facilities. Wells 14-12 and 2-13 follow the success of the Muskeg well 14-35 which employed a new completion technique resulting in a test rate of 1,060 boe/d in the first quarter of 2016.

During the fourth quarter, the company successfully drilled four Muskeg wells on a pad with an average lateral length of 1,900 meters and 20 completion stages. The first two wells are tied in and producing significantly above the company's type curve. The third Muskeg well 2-27 is equipped, tied in and producing 85 boe/d while still cleaning up. The completion program for the fourth well on the pad has been delayed due to operational issues.

Strategic's continued focus on cost reductions in 2016 is positively affecting operating netbacks and cash flows. In late 2015 the Company estimated reductions in operating and general and administrative ("G&A") costs of 15 percent in 2016 from 2015 levels. Based on internal projections, operating costs are estimated to decrease from $19.8 million in 2015 to $14.25 million for 2016. G&A costs are projected to decrease from $6.7 million for 2015 to $5 million in 2016. Total operating and G&A costs are expected to be reduced by over $7 million or 27 percent in 2016 from 2015 levels.

2017 BUDGET

Strategic's Board of Directors has approved a capital budget of $30 million 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 budget 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.

FINANCING

In order to provide funding for the first half 2017 capital program and add financial flexibility, Strategic has undertaken a non-brokered private placement (the "Private Placement") of up to 333 million common shares at a price of $0.12 per common share for gross proceeds of up to $40.0 million, subject to regulatory approvals. A significant portion of the Private Placement will be acquired by insiders of the Company. Any shareholder wishing to participate in the Private Placement should contact the Company by December 16, 2016. Shares issued will be subject to a hold period expiring four months from the date of issue.



New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Strategic Oil & GasWell Results2017Finance

More items from oilvoice


Cyber Security Experts Unite to Protect Europe’s Critical Industries

CS4CA Summit Returns to London this October Staying abreast of fast-paced industry developments is crucial for cyber security professionals. And while one can learn a lot from publications and social media, it's hard to beat the value of insights gained first-hand from peers. This is why 150+ IT ...

OilVoice Press - OilVoice


Posted 3 months agoPress > cybereurope

Africa E&P Summit

The organisers of the Africa E&P Summit are bringing together Africa's leading exploration companies and governments, just one of the many reasons why you should be attending frontier's event that they are organising and hosting in London at the IET: Savoy Place, 22-23 May. Over 200 key senior exec ...

OilVoice Press - OilVoice


Posted 7 months agoPress > Africasummitoil summit +2

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice


Posted 11 months agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice


Posted 11 months agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice


Posted 11 months agoPress > CNOOCChina National Offshore Oil CorporationChevron +11
All posts from oilvoice