Strategic Oil & Gas Ltd. provided operating guidance for the fourth quarter and full year of 2014 and fiscal 2015. The company announced an acceleration to its Muskeg development program and the completion of a USD 10 million loan from Bay Resources Partner's Funds and Tom Claugus. Strategic has drilled four Muskeg wells during the third quarter and is planning to drill six more Muskeg wells during the fourth quarter of 2014, exiting the year at 4,600 boe/d. Production rates are exceeding the company's type curve and field netbacks in Marlowe are currently over USD 40/boe. Muskeg Well 1,124 drilled in the third quarter of 2014 has produced 23,000 boe in 45 days at a rate of 511 boe/d. For comparison, Muskeg well 1,024 drilled in the first quarter of 2014 produced 23,600 boe during the first 45 days and has now produced 54,500 boe in 130 days at an average rate of 419 boe/d. The remaining three wells drilled in the third quarter are currently being tied in.

The company plans to continue executing a continuous one rig drilling program through to the end of 2015, drilling up to 23 wells in 2015 and achieving production growth of approximately 25%. Guidance for 2015 will be provided once the formal budget process has been completed.

Capital requirements over and above cash flow from operations of USD 50-USD 75 million for the remainder of 2014 and 2015 will be funded from equity, potential increases in credit facilities and sales of noncore assets.