Strategic Oil & Gas Ltd. announced record production levels driven by the Company's summer Muskeg horizontal drilling program. Based on field estimates, Strategic's corporate production rate averaged 4,510 Boe/d (71% oil) for the fourth week of September. New production volumes in the third quarter have been added from five Muskeg wells since the summer drilling program began in June 2014, and a sixth well which was recently fracture stimulated is currently being tied in. Further advancements in the completion program yielded higher oil rates in the latest three Muskeg wells 15-24, 1-25 and 14-23. Production rates for the 2-26 well have increased in recent days as the well continues to clean up.

Strategic expects to continue its active capital program through the fourth quarter, drilling up to six new wells. Production for the second half of 2014 is still estimated at 3,800 Boe/d and 2014 exit production guidance is maintained at 4,600 Boe/d.