Strategic Oil & Gas Ltd. reported unaudited consolidated earnings and production results for the second quarter and six months ended June 30, 2017. For the quarter, the company reported oil and natural gas sales of $10,312,000 compared to $5,974,000 a year ago. Funds from operations were $2,991,000 compared to $440,000 a year ago. Net loss was $7,020,000 or $0.15 per basic share compared to $5,800,000 or $0.21 per basic share a year ago. Net capital expenditures were $12,784,000 compared to $1,152,000 a year ago, primarily on completion and related surface equipping costs for five horizontal Muskeg wells and drilling the 15-34 horizontal Muskeg well at north Marlowe. Cash from operating activities was $1,828,000 or $0.04 basic per share compared to $3,820,000 or $0.14 basic per share a year ago.

For the six months, the company reported oil and natural gas sales of $19,200,000 compared to $10,679,000 a year ago. Funds from operations were $5,374,000 compared to funds used in operations of $1,740,000 a year ago. Net loss was $11,460,000 or $0.25 per basic share compared to $9,283,000 or $0.34 per basic share a year ago. Net capital expenditures were $30,851,000 compared to $9,449,000 a year ago. Cash from operating activities was $1,879,000 or $0.04 basic per share compared to cash used in operating activities of $2,345,000 or $0.09 basic per share a year ago. Net debt as on June 30, 2017 was $75,875,000.

For the quarter, the company reported average daily production of crude oil was 1,942 Bbl per day against 1,396 Bbl per day a year ago. Natural gas was 4,317 Mcf per day against 2,598 Mcf per day a year ago. Barrels of oil equivalent were 2,661 Boe per day against 1,829 Boe per day a year ago, primarily due to new production from the winter Muskeg drilling program.

For the six months, the company reported average daily production of crude oil was 1,786 Bbl per day against 1,471 Bbl per day a year ago. Natural gas was 4,096 Mcf per day against 2,566 Mcf per day a year ago. Barrels of oil equivalent were 2,468 Boe per day against 1,899 Boe per day a year ago, due to production from the Company's fall 2016 and winter 2017 drilling programs coming online.