- SOG Acquired Steen River Oil and Gas Dec 22nd 2010.
- SOG Repaired the North Marlowe Pipeline in January to increase SOG Production to 900 boepd as of Feb 2011.
- Upgrade all season access in North Marlowe
- Workover the Sulphur Point in 4 wells for a tested volume of 200 boepd
- 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
Up until Dec 2010 Strategic was a 5% partner in the Steen Assets. An opportunity arose to acquire Steen River Oil & Gas Ltd. and the transaction closed on Dec 22nd 2010. The purchase price was $10.5 MM, of which $6.3 MM was cash and $4.2 MM in Strategic shares. An additional $3.5 MM was assumed consisting of 5% secured debentures for a total enterprise value of $14 MM.
- Land is 200 sections (140 undeveloped) with 100% working interest
- Processing facility with capacity for 2000 bopd & 35 mmscfd gas. Estimated replacement cost $35 MM
- Over 200 km of pipelines
- Tax pools of >$110 MM
- Acquisition metrics: $22,000 per boepd
Winter 2010-2011 Activities (completed)
- Repair pipeline at Marlowe North
- Shoot, Process and "First Pass" Interpret 3D seismic over North Marlowe.
- Workover 4 wells for Sulphur Point production
- Drill 2 wells at North Marlowe for Keg River oil
- Upgrade to all-season road access into North Marlowe
Q2-Q4 Activities 2011
- Drill 3-4 additional wells at North Marlowe and 1-2 wells in West Marlowe.
- Interpret existing 3D seismic over Lessard and appraise for future potential.