For the year-end 2008 average production raised by 80 boe/d or 98% over the year ended December 31, 2007. This raise reflects a full year of production from the Northwest Alberta properties obtained in December 2007, a new well brought on production during the third quarter at Harmattan (10-8) in West Central Alberta and regulatory approval for the commingling of production at the Ferrier property. A second well at Harmattan (8-16), similar to the 10-8 well was drilled during the fourth quarter of 2008 and is anticipated to be tied in by June, 2009.
Commodity prices although strong during 2008, reduced considerably in the fourth quarter and resulted in reduced cash flows in the fourth quarter of 2008 and the first quarter of 2009. Although Strategic Oil & Gas faced with lower commodity prices and difficult financial markets, the corporation is relatively well positioned to move forward in 2009.
Strategic Oil & Gas continues the technical assess on the 50,000 acres of land in the Maxhamish region of Northeast British Columbia that the company has access to as a result of a farmout agreement with a major independent Canadian oil corporation. Strategic Oil & Gas has a strong technical team that will allow it to evaluate this area from a geological and engineering perspective, with the plan to drill two wells by March, 2010.
The corporation also continues to pursue new high impact opportunities in Western Canada and in International regions in which the technical team has experience.
