Canadian-incorporated Stratic's activities are principally in the UK and Dutch sectors of the North Sea, Italy and Turkey, with further interests in Syria and Tunisia. The Company's asset portfolio is focused on the appraisal and development of existing discoveries that have near-term production potential, with existing production and revenue from gas assets in Turkey.
Stratic's management team comprises a group of former Enterprise Oil senior executives, headed by Kevin Watts as CEO, with the Board chaired by Sir Graham Hearne. The new leadership team has, in the past two years, focused and expanded the portfolio of development and appraisal opportunities, recapitalized the Company, completed the Grove acquisition and strengthened the Board, management team and technical resources of the Company. The Company has already been an active participant in acquisitions and licensing rounds in its focus areas.
Stratic has proved and probable oil and gas reserves of 15.5 million barrels of oil equivalent with additional contingent resource volumes, as reported on by Gaffney, Cline & Associates Limited and Ryder Scott Company, L.P., whose reports are included in the AIM admission document. The Company commenced gas production last month from the Akkaya field in the Black Sea, offshore Turkey as part of the first phase of development of the South Akcakoca Sub Basin. Two further fields offshore Turkey, Ayazli and East Ayazli, are expected to be brought onstream shortly. Plans for two new developments, West Don in the UK and the Longanesi (formerly Abbadesse) gas field in Italy, are expected to be submitted within the next six months. In addition, Stratic has assembled a portfolio of appraisal and principally near-field exploration prospects for longer term growth, including appraisal wells that are targeted for the Breagh and Crawford discoveries later in 2007.
Admission to AIM will satisfy a commitment made to Grove's shareholders located in the UK and Europe at the time of the Grove acquisition. The Board also believes that a broader international capital base will be of increasing importance as the Company continues to grow. No new capital was sought in conjunction with the Admission to AIM. The Company intends to apply for its primary listing to graduate from the TSX Venture Exchange to the main Toronto exchange, which is expected to become effective within the next three months.
Chief Executive Kevin Watts commented: "We are delighted to have completed our admission to AIM, which we believe will raise our profile in this key financial center and should aid in the development of a broader investor base. 2007 has already been an extremely busy year for Stratic on both the operational and corporate fronts. The acquisition of Grove has provided us with two further near term development opportunities in our focus areas plus longer term growth options. Our drilling program has produced three discoveries already this year and we will drill at least two important wells in the North Sea later this year. We have also recently strengthened the Board and now with the AIM listing, the platform for our plans to grow the Company's value significantly over the next few years is in place."
Lazard & Co. Limited acts as Nominated Advisor to the Company. Tristone Capital Limited is the Company's London broker.
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