Strategic Oil & Gas Ltd. reported unaudited earnings and operating results for the third quarter and nine months ended September 30, 2012. For the period, the company reported petroleum and natural gas sales of $12,520,000 compared to $5,200,000 a year ago. Funds from operations were $4,349,000 or $0.02 basic and diluted per share compared to $1,011,000 or $0.01 basic and diluted per share a year ago. Net loss was $718,000 compared to $1,395,000 or $0.01 basic and diluted per share a year ago. Capital expenditures (excluding acquisitions) were $14,082,000 compared to $14,851,000 a year ago.

For the nine months period, the company reported petroleum and natural gas sales of $40,649,000 compared to $15,246,000 a year ago. Funds from operations were $16,443,000 or $0.09 basic and diluted per share compared to funds used in operations of $79,000 a year ago. Net income was $1,129,000 or $0.01 basic and diluted per share compared to net loss of $8,453,000 or $0.06 basic and diluted per share a year ago. Capital expenditures (excluding acquisitions) were $47,144,000 compared to $33,382,000 a year ago.

For the quarter, the company reported crude oil of 1,734 Bbl per day compared to 595 Bbl per day a year ago. Natural gas was 1,178 Mcf per day compared to 1,916 Mcf per day a year ago. Barrels of oil equivalent were 1,930 Boe per day compared to 914 Boe per day a year ago. Operating netback was $37.13 per Boe compared to $27.35 per Boe a year ago.

For the nine months period, the company reported crude oil of 1,791 Bbl per day compared to 564 Bbl per day a year ago. Natural gas was 1,537 Mcf per day compared to 1,799 Mcf per day a year ago. Barrels of oil equivalent were 2,047 Boe per day compared to 863 Boe per day a year ago. Operating netback was $38.10 per Boe compared to $15.20 per Boe a year ago.

The company provided production guidance for the year 2012. For 2012, the company expects exit rate of 3,000 boe/d.