Northern Alberta operator Strategic Oil & Gas Ltd. (ticker: SOG) has posted Q4 and full year 2017 results. The company had a net loss of $41.3 million, or $(0.89) per share in Q4 2017. For 2017, Strategic had a net loss of $89.5 million, or $(1.94) per share. Strategic said the loss was driven by an impairment charge of $58.8 million related to lower reserves values at Marlowe and a loss on revaluation of decommissioning liabilities of $7.2 million.
New production from Muskeg drilling activity boosted production to 2,424 BOEPD in Q4 2017 – this compares to Q4 2016’s 1,859 BOEPD. Average daily production for 2017 was 2,436 BOEPD.
Full year capital expenditures increased to $48.2 million as Strategic accelerated its Muskeg plan. A total of eight horizontal wells were drilled, including seven Muskeg wells and one Slave Point well. Capital spending for the year also included the construction of 4-kilometers of high grade road and pipeline to tie-in the 14-35 Muskeg well drilled in 2016.
Proved and probable reserves at December 31, 2017 were 16.0 MMBOE, a net present value of $130.1 million.
2018 activity: drilled and completed 2 Muskeg wells
In the first quarter of 2018, Strategic reported drilling and completing two Muskeg wells at West Marlowe along the high potential Muskeg light oil corridor. The company said it refined its completion techniques to complete 30 stages per well using a proven pinpoint shiftable sleeve system. Both wells were completed in the first quarter.
