Strategic Oil & Gas Ltd. (ticker: SOG) and its board of directors has approved a $9 million capital program for the first half of 2018. The company’s 2018 winter drilling program will be focused on the Muskeg wells at West Marlowe. Capital spending will be directed primarily to drill, complete and tie-in two Muskeg horizontal wells. Strategic said that this plan will continue to develop its high potential light oil corridor.
Strategic – Muskeg, Sept. 2017 Presentation
Monobore, pinpoint shiftable sleve system, reduction in water usage
Strategic intends to reduce drilling costs by using a monobore well design, and increase its completion stage intensity in order to enhance well productivity. The company is adjusting its completion techniques to use a proven pinpoint shiftable sleeve system and altering its frac technology to reduce water usage by approximately 50%.
The capital program also includes minor facility and reclamation projects. Strategic said that these adjustments will improve initial production from the Muskeg wells and reduce well costs, which would enhance the economics of future drilling programs. The company intends to fund the program with cash on hand and cash flow from operations.
Strategic – Corporate Snapshot, Sept. 2017 Presentation
