Strategic Oil & Gas Ltd. Announces Continued Drilling Success, Provides Operational Update and 2012 Guidance

CALGARY, ALBERTA--(Marketwire - Jan. 24, 2012) -

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Strategic Oil & Gas Ltd. (TSX VENTURE:SOG) ("Strategic" or the "Company") is pleased to announce that the Company achieved exit production of 1,880 boe per day (71% oil). Production for the month of December averaged 1,655 boe per day, representing over a 400% increase from December, 2010. Four new wells were put on production during December 2011. The vertical Keg River well 102/15-22 is producing light oil with an initial 30 day production rates (IP30) of 355 boe per day. Strategic has contracted a second rig at Steen River which will enable the drilling of up to nine wells in 1Q12.

Strategic completed a $42.3 million financing on December 23, 2011 to fund its 2012 capital program of $60 million. At Steen River, Strategic acquired 43 sections (27,201 acres) with Sulphur Point light oil potential. At Amber, Strategic acquired 56 sections (35,741 acres) in northwestern Alberta Muskwa play fairway with light oil potential in two zones. Strategic is well positioned to exploit the light oil potential at Steen River, Maxhamish and Amber.

Strategic has drilled three Keg River vertical wells and one Sulphur Point horizontal well at Steen River during 4Q11. In January 2012, two new Keg River wells have been drilled and cased, another vertical Keg River and a horizontal Sulphur Point well are currently being drilled. Results of the recently drilled wells are as follows:

STEEN RIVER

Strategic owns 100% working interest in three oil horizons at Steen River namely Keg River, Sulphur Point and the Muskeg Stack. At North Marlowe the two new vertical Keg River wells are producing light oil with an IP30 of 185 boe per day and 355 boe per day. In December 2011, Strategic drilled its first Keg River vertical well at the West Marlowe field which is sixteen km west of the North Marlowe field. The well is producing light oil with an IP30 of 125 boe per day.

The first horizontal well drilled in the Sulphur Point zone at North Marlowe is 700 m long, has no fracture stimulation and is producing light oil with an IP20 of 150 boe per day. A second Sulphur Point horizontal well is currently being drilled. Strategic aims to develop the Sulphur Point reservoir which extends over the 58 sections of land with horizontal wells.

Strategic has cored and tested light oil in the Muskeg Stack - a zone which lies below the Sulphur Point zone and is aerially extensive. Strategic plans to drill a horizontal well in 1H12 to evaluate the Muskeg Stack.

MAXHAMISH

Strategic and its partner have now drilled four multi-stage fractured horizontal wells at Maxhamish. The first two wells were drilled during 1Q10 and have now been producing for over 18 months. Initial oil rates per well (restricted by facility constraints) were 125 boe per day. Currently, these wells are each producing at a rate of 60 boe per day.

Two new horizontal wells were drilled and put on production at the end of 4Q11. These wells have been producing light oil along with water from the frac fluid. Water cuts have been improving during the past 5 weeks.

AMBER

Strategic acquired 56 sections (35,741 acres) of land targeting two zones with light oil potential - the Jean Marie carbonate and the Muskwa shale. Jean Marie has an average net pay of 8m containing approximately 7 mmstb of light oil per section. The Muskwa shale has an average thickness of 25m within the mature oil generation window. Strategic intends to drill up to two multi-stage fractured horizontal wells at Amber.

GUIDANCE for 2012

Strategic has allocated a 2012 capital budget of $60 million and anticipates drilling a total of 20 gross (17 net) wells. The program is expected to be financed through a combination of cash flow, debt and the capital raised in the recent financing. Management is pleased to provide the following 2012 guidance:

Strategic's light oil drilling inventory comprises of conventional wells at Steen River and resource play wells at Maxhamish and Amber which positions the Company for long-term organic growth. Details of its 2011 reserves evaluation and full-year 2011 financial and operational results will be announced in 2Q12.

About Strategic

Strategic is a junior oil and gas company committed to growth by exploiting its light oil assets in Maxhamish, northeast British Columbia and Steen River and Amber 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".

Further information with respect to the Company can be found on its website at www.Strategicoil.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.