Strategic Completes First Pinedale/Jonah Well

Strategic Oil and Gas Ltd. said that it has completed the drilling of its first well (22.5% owned) of a multi-well program in the Pinedale/Jonah area of Wyoming. Total depth of this well was more than 13,600 feet.

The well encountered multiple gas zones. A completion program, which is expected to take several weeks, is commencing immediately. Based upon initial indications from this well, a second well location is currently being prepared. At press time, drilling was set to commence on July 19. An additional rig is now scheduled to move to this area next month to accelerate this drill program and these lands. Strategic's partners on the well are Jed Oil Inc. and JMG Exploration Inc. This well is of special significance to a small company because it is Strategic's first well drilled in the prolific Pinedale/Jonah area.

Strategic has also been advised that completion programs have begun on two wells in its central Alberta area. Both of these wells encountered multiple pay zones and are subsequently being completed in multiple zones. Strategic has a 26.25% interest in both wells. The success of the company's central Alberta projects has led to the creation of several additional drilling locations in the area, scheduled for the fourth quarter.