Strategic Oil & Gas Ltd. has entered into agreements to acquire certain assets in Strategic's core area at Steen River, Alberta, (the "Acquisition"), for cash consideration of $23.6 million, subject to customary closing adjustments. The Acquisition will have an effective date of December 1, 2012 and is expected to close on December 21, 2012.

Strategic is acquiring a 100% working interest in 340 boe/d (83% light oil) of production and over 26 net sections of highly prospective land contiguous to Strategic's land position at Steen River. The Acquisition also includes significant pipelines, facilities and roads that are strategic to the Company and provides an immediate increase in efficiencies in current operations, coupled with a decrease in future infrastructure capital costs. The infrastructure assets include:

• Pipeline and off-loading station at the Mackenzie Highway, resulting in an immediate reduction in trucking costs and accelerating the full implementation of the Company's takeaway capacity by rail. • Pipeline and water disposal capabilities at the West Marlow Field, resulting in an immediate reduction in trucking costs. • 16 km of all-weather road, allowing unrestricted access to additional projects.

Tags: Strategic Oil & Gas Ltd.