Strategic Oil & Gas Ltd. Discloses December 31, 2010 Reserves and Independent DPIIP Study for Maxhamish

CALGARY, ALBERTA--(Marketwire - March 16, 2011) - Strategic Oil & Gas Ltd. ("Strategic" or the "Company") (TSX VENTURE:SOG) is pleased to announce a four- fold increase in reserves and a three-fold increase in corporate reserves value from the previous year. 

2010 Strategic Reserves and PVBT Comparison*

		Total Proved							Total Proved + Probable
		2009-12-31		2010-12-31		Increase			2009-12-31		2010-12-31		Increase
Oil + NGL (Mbbl)		472		1,705		261	%		915		3,114		240	%
Natural Gas (MMcf)		1,283		5,389		320	%		2,183		9,708		345	%
Oil Equivalent (Mboe)		686		2,603		279	%		1,279		4,733		270	%
PVBT (0% Discount) $M		$17,514		$53,056		203	%		$35,063		$101,831		190	%
PVBT (10% Discount) $M		$12,173		$34,228		181	%		$21,105		$56,439		167	%

*see notes for assumptions, definitions, procedures and standards.

Company Highlights

Two major activities in 2010 impacted positively on the Company's reserves.

1. Corporate acquisition of Steen River Oil & Gas Ltd. ("Steen River") for $14 MM. The Steen River acquisition added 1958.7 MB of Total Proven (TP) reserves and 3483.9 MBOE of Total Proven Plus Probable (TP+P) reserves. This represents an acquisition price of $7.15 /boe on TP reserves and $4.02 /boe on TP+P reserves. In addition, the Steen River acquisition added 70,400 of net acres to Strategic's land base. Please refer to Strategic's December 22, 2010 press release for additional information.

2. Earning of Maxhamish reserves effective April 1, 2010, through the successful fulfillment of the farmout terms and acquisition of Encana's working interest (and farmout) for $5 MM effective October 1, 2010. Maxhamish earning and acquisition gave Strategic a 38.5% working interest in 26,000 net acres for an aquisition cost of $220 /acre. Please refer to Strategic's September 9, 2010 press release for additional information. Maxhamish added 72.6 MBoe of TP reserves and 213.2 Mboe of TP+P reserves. This represents an aquisition price of $68.87 /boe on TP reserves and $23.45 /boe on TP+P reserves.

Finding and Development costs, including acquisitions, revisions and changes to future capital, was $15.59/boe TP and $11.82/boe TP+P based on estimated 2010 capital spending of $27.7 million. The Company's reserve life index has increased to 14.4 years in 2010 on TP+P (note 7).

Independent Resource Assignment for Maxhamish

Strategic commissioned GLJ Petroleum Consultants Ltd. ("GLJ") to conduct an independent resource evaluation of the Company's Maxhamish area effective December 31, 2010. The Company owns a 38.5% working interest in the Maxhamish lands being evaluated. This study has assigned discovered petroleum initially-in-place ("DPIIP") to 13,874 gross acres (22 sections gross lease) of land for a best estimate of 123 MMbbl of oil (48 MMbbl net to Strategic). This represents 6 MMbbl of oil per section gross lease. This assignment is consistent with Strategic's internal estimate for DPIIP resources for the study area. The DPIIP study is restricted to a 3 mile extension from the existing wells where proven and probable assignment of reserves have been recognized and does not extend over the entire Maxhamish land base. The 13,874 acres is 20% of Strategic's Maxhamish land base. 

Strategic management's internal estimate has projected recovery factor's of between 10% to 15%. At 4 wells per section this would yield recoverable volumes of between 150 and 225 Mbbl per well. 

DPIIP is defined in section 5.4 of the Canadian Oil and Gas Evaluation ("COGE") Handbook as the quantity of hydrocarbons that are estimated to be in place within a known accumulation. The recoverable portion of DPIIP is divided into commercial (reserves) and subcommercial (contingent resources); the remainder is by definition unrecoverable. There is no certainty that it will be economically viable or technically feasible to produce any portion of this DPIIP, except to the extent identified as proved or probable reserves. 

It should be noted that given the early stages of development, the best estimate of DPIIP may change in the future with further exploration and development activity and the amount of contingent resources, as defined in the COGE Handbook, has yet to be determined. Additional drilling, testing and development are required to confirm economic development and ultimate recovery factors in the play. The resource estimates provided herein are estimates only, and as a result, the actual resources may be greater or less than the estimates provided herein other than the resources that have been booked as reserves in the December 31, 2010 Reserves Report. A recovery factor for this resource has not yet been assigned by GLJ for these volumes of DPIIP at this time.

There currently exists five producing vertical oil wells and 2 producing horizontal oil wells at Maxhamish. Go forward drilling strategy includes horizontal multi-frac technology. Technical expertise plays a large role in the exploitation of this play, and with further drilling, Strategic will continue to improve exploitation techniques and optimize the total well costs. 

About Strategic

Strategic is a well capitalized junior oil and gas company committed to growth by exploiting its light oil assets in Maxhamish, northeast BC and Steen River in northwest Alberta. Strategic's highly regarded subsurface technical team is primarily focused on implementing development plans for its light oil properties, while continuing to review other high impact light oil resource plays. Strategic's common shares trade on the TSX Venture Exchange under the symbol SOG.

Notes:

1. The December 31, 2010 reserves report has been prepared in accordance with the definitions, procedures and standards contained in the Canadian Oil and Gas Evaluation Handbook and the Canadian Securities Administrators National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities.
2. Present value before taxes (PVBT) represents the present value of future net revenues, prior to provision for income taxes, interest and G&A expenses. Company working interest is before royalties.
3. Tables and other reportings may not add due to rounding.
4. Values are net of abandonment liabilities.
5. The net present values of future net revenues may not represent fair market value.
6. The estimated net present value of future net revenue is based on current legislation in place at December 31, 2010.
7. The reserve life index calculations is based on 900 BOE's/ day on 2010 year end reserves.
8. Price Forecast

The following table summarizes the first five years of the price forecast used to determine the present value of future net revenues, based on GLJ's January 1, 2011 escalated forecast pricing: 

Year			Exchange rate $US/$Cdn			WTI@Cushing $US/bbl Crude oil			Edmonton Light $Cdn/bbl Crude oil			AECO Spot $Cdn/MMBtu Natural gas
2011		$	0.98		$	88.00		$	86.22		$	4.16
2012		$	0.98		$	89.00		$	89.29		$	4.74
2013		$	0.98		$	90.00		$	90.92		$	5.31
2014		$	0.98		$	92.00		$	92.96		$	5.77
2015		$	0.98		$	95.17		$	96.19		$	6.22

Additional information on the Company's reserves as required by NI 51-101 will be filed prior to April 30, 2011 on SEDAR (www.sedar.com).

FORWARD LOOKING INFORMATION: Certain information set forth in this document, including management's assessment of future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond our control. Those risks include, without limitation, the effect of general economic conditions, risks associated with oil and gas exploration, development, production, marketing and transportation, loss of markets, industry conditions and competition, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the ability to access qualified personnel and oilfield services, decisions by regulators, and the ability to access sufficient capital from internal and external sources. Readers are cautioned not to place undue reliance on the forward-looking statements as the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and actual results, performance or achievements could materially differ from those expressed or implied in such forward-looking statements and accordingly, no assurance can be given that any of the events anticipated by forward looking statements will transpire or occur, or if any of them do so, what benefit Strategic will derive there from. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.

BOE PRESENTATION:  Barrel ("bbl") of oil equivalent ("boe") amounts may be misleading particularly if used in isolation. All boe conversions in this report are calculated using a conversion of six thousand cubic feet of natural gas to one equivalent barrel of oil (6 mcf=1 bbl) and is based on an energy conversion method primarily applicable at the burner tip and does not represent a value equivalency at the well head.

DISCOVERED PETROLEUM INITIALLY IN PLACE (DPIIP): DPIIP is equivalent to discovered resources and is defined in the Canadian Oil and Gas Evaluation Handbook ("COGEH") as that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production. The recoverable portion of discovered petroleum initially-in-place includes production, reserves and contingent resources; the remainder is unrecoverable. "Contingent Resources" are defined in COGEH as those quantities of petroleum estimated to be potentially recoverable from known accumulations using established technology or technology under development, but which are not currently considered to be economically recoverable due to one or more contingencies. Contingencies may include factors such as economic, legal, environmental, political, and regulatory matters, or a lack of markets. It is also appropriate to classify as contingent resources the estimated discovered recoverable quantities associated with a project in the early evaluation stage. The Contingent Resources estimates and the DPIIP estimates are estimates only and the actual results may be greater or less than the estimates provided herein. There is no certainty that it will be commercially viable to produce any portion of the resources except to the extent identified as proved or probable reserves. "Best estimate" is defined in COGEH with respect to entity-level estimates, as the value derived by an evaluator using deterministic methods that best represent the expected outcome with no optimism or conservatism. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.