Strategic Oil & Gas Ltd. announced the commencement of its summer drilling program planned for the third quarter of 2017. Building on the company's success in the first half of 2017, Strategic has commenced a summer program to drill and complete up to four new Muskeg horizontal wells. In addition, Strategic plans to evaluate a second prospective formation in the company's multi-zone light oil prospect at Marlowe. In the first half of 2017 Strategic brought five new Muskeg wells on production. The remaining two wells 00/5-12 and 00/11-12 have tested over 200 bbl/d of oil with limited gas as they continue to clean up. The five new wells are equipped with a pump jack and are now tied-in and producing into the company's infrastructure. Early indications show that these Muskeg wells are significantly more oil weighted as compared to the previous Muskeg wells. The new Muskeg wells have been designed and equipped with down hole equipment to handle the associated gas production and improve the efficiency of the pump jack over the life of the well. This new artificial lift configuration limits initial peak production rates from the Muskeg horizontal wells but is intended to increase overall performance over the first 90 days. The company is delighted with the success of the latest Muskeg horizontal wells and plans to further reduce drilling costs while improving production per stage.