Strategic Oil & Gas Ltd. announced the results of a full reserves evaluation of its assets and a resource assessment of the Muskeg Stack on a portion of the company's assets at Steen River, as of June 1, 2013. It was prepared by the company's independent reserve engineering firm, McDaniel & Associates Consultants Ltd. The reports show continued corporate reserves growth and confirm an extensive oil resource play in the Muskeg Stack at Strategic's Steen River asset. The resource study, which covered 25% of Strategic's Steen River land base, focused on the Muskeg Stack and has assigned resources to 37 sections on the northern rim of the Astrobleme. The Muskeg Stack is one of the six light oil producing zones on the rim of the Astrobleme. Strategic increased corporate reserves by 53% to 11.8 million boe of total proved and probable reserves after accounting for year-to-date production. Highlights include: total oil initially in-place, discovered plus undiscovered (TOIIP) of 241 million bbls associated with 37 sections on the northern rim of the Astrobleme; discovered oil initially in-place in the Muskeg of 91 million bbls with associated proved plus probable reserves of 3.6 million boe and best estimate of contingent resources of 6.7 million boe; undiscovered oil initially in-place in the Muskeg of 150 million bbls with a best estimate of prospective resources of 19.4 million boe.

The company expects its second quarter production to exceed 3,800 boe per day, representing an increase of over 35% from the first quarter of 2013, and up 66% from the fourth quarter of 2012.

The company projects its 2013 second quarter cash flow at approximately $8 million as a result of the increased production, improved netbacks, and reduced general and administrative costs during the quarter.