In This Section

Overview

Strategic’s primary business is upstream oil and gas exploitation and development. With its main areas of focus being Maxhamish in northeastern British Columbia and Steen River in  northwestern Alberta.  Taber and Conrad areas of southern Alberta provide stable production with potential upside from chemical flooding.

Alberta

The Steen River area is located in northwestern Alberta.  Strategic has over 140 sections of undeveloped land, with multi-zone potential in the Keg River Sulphur Point, Muskeg Dolomite, and the Glove Point.  Current production capability is 1,000 boepd, primarily from the Keg River Zone.  The Steen River plan can handle 2,000 bopd of oil and 35 mmcfd of natural gas.

Taber and Conrad properties are oil producing properties located in southern Alberta. This is a low risk development area that provides annualized cash flow of greater than $1.5 million. Future development may include drilling waterflood and or enhanced oil recovery projects.

Harmattan and Ferrier areas are legacy, non-operated properties that continue to contribute to cash-flow. Strategic and their partners own multi-zone rights in this area (including the Cardium). Future opportunities may involve horizontal drilling into the Cardium.

Steen River

  • SOG Acquired Steen River Oil and Gas Dec 22nd 2010.
  • SOG Repaired the North Marlowe Pipeline in January to increase SOG total production to 900 boepd for Feb 2011
  • Upgrade all season access in North Marlowe
  • SOG Drilled 2 North Marlowe Keg River Wells. 103/10-22 produced 311 bopd and 100/08-22 produced 50 bopd for the first 30 days of production
  • SOG Acquires 38 Sections of Land on June 1, 2011

Taber

  • Two sections of land
  • Production of >70 bbls/d
  • Long reserve life index of 8 years
  • 75% owned facilities - central batteries, tanks, water handling facilities and flow lines

Conrad

  • Over 13 key sections of land (providing over 10 possible drilling locations)
  • Current production of 60 bbls/d
  • Long reserve life index of 8 years

Ferrier

  • Proven Cardium oil and liquids rich natural gas production
  • Multi-zone oil and natural gas potential
  • Near existing infrastructure
  • Glauconite, Ellerslie, and Rock Creek opportunities being developed with the ability to expand in area
  • Potential for horizontal Cardium wells

Harmattan

  • Two sections of land
  • Liquids rich natural gas
  • Multi-zone potential – Cardium, Glauconite, Elkton, Shunda (2,500m)
  • Two producing wells
  • Additional 2-3 locations have been identified to be drilled at low risk with high production potential, including horizontal Cardium wells

British Columbia

Strategic has a 38.5% working interest in the Maxhamish region of northeast British Columbia giving them access to over 100 gross sections of highly prospective acreage in the Liard Basin, 125 km north of Fort Nelson, an area with significant hydrocarbon production.

Maxhamish Play

  • Dominant land position, 100+ contiguous sections
  • 38.5% working interest
  • Long term leases
  • Commercial Oil has been proven
  • Plan to develop 4 wells per section
  • SOG Internal OIP estimates > 500 MMbbls
  • Expected Reserves for future drills is 150,000 - 225,000 bbls recoverable per well
  • 2011 Development plan is to gain all season access and to drill up to 4 wells.
Maxhamish Steen River Ferrier Harmattan Taber Conrad