Strategic Oil & Gas Ltd. Announces Closing of $65.8 Million First Tranche of Private Placement

CALGARY, ALBERTA--(Marketwired - Sept. 30, 2014) -

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Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Company") is pleased to announce that it has closed the first tranche of its previously announced financing for total gross proceeds of $65.8 million (the "Private Placement"). At closing, Strategic issued 163,926,091 common shares in the Company ("Common Shares"), comprised of 158,085,000 Common Shares and 5,841,091 Common Shares issued on a flow-through basis ("Flow-Through Shares") pursuant to the Income Tax Act (Canada). The Common Shares are being offered at a price of $0.40 per Common Share and the Flow-Through Shares are being offered at a price of $0.44 per Flow-Through Share. The Company anticipates closing of the final tranche of the Private Placement to occur on or about October 15, 2014. 

The gross proceeds raised from the Flow-Through Shares will be used by the Company to incur and renounce, effective on or before December 31, 2014, Canadian exploration expense (as defined in the Act) in an amount equal to the aggregate purchase price for the Flow-Through Shares bought by each purchaser.

Net proceeds of the Private Placement will be used to repay indebtedness and fund the Company's ongoing Muskeg horizontal well drilling program. The Common Shares issued will be subject to a hold period expiring January 30, 2015. 

The Company also announced today that it has issued 175,000 stock options to a director of Strategic. Each option entitles the holder to acquire one Common Share of the Company for a period of five years at a price of $0.43 per share. These options were issued in accordance with the Company's incentive stock option plan.

ABOUT STRATEGIC OIL & GAS

Strategic is a junior oil and gas company with a dominant land position of 500,000 acres 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.

Forward-Looking Information

This news release includes certain information, with management's assessment of Strategic's future plans and operations, and contains forward-looking statements including anticipated financings, closing dates and use of proceeds, 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, 2013 and other documents filed with Canadian provincial securities authorities and 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.

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.