Strategic currently produces 320+ boe/d (2/3 crude oil and liquids) from properties in Alberta.

They have signed a farm-in deal in the Maxhamish play in northeastern BC. Maxhamish is a high impact, oil resource play with a low cost of entry, a large upside horizontal drilling oil project, access to 50,000 acres of prospective acreage and multi-zone opportunities. To assist in developing this play Strategic has brought in an industry partner.

Strategic has 3D geo-modelling technology and geo-statistical methods that provide them with a significant competitive advantage. Management is actively evaluating opportunities in western Canada through extensive well data sets and large land holdings.

Short-term plan

• Growth of 600-1,000 boe/d from western Canada production through development and selective acquisition
• Utilize Strategic's strong technical team to identify unique opportunities in western Canada
• Evaluate two wells recently drilled at Maxhamish, then plan for future development program
• Exploit Taber and Conrad areas by drilling up to five wells in 2010

Long-term plan

• Use our technical expertise to identify accretive, high impact plays in western Canada
• Develop the Maxhamish play in northeastern BC
• Review waterflood and enhanced oil recovery potential at Taber and Conrad