Strategic Oil & Gas Ltd. provided an update on the company's current drilling activities. Strategic has drilled its first four well pad in the development corridor at West Marlowe. The recent Muskeg horizontal well 2-13 has an average rate of 1,263 boe/d over the last 24 hours on test and has produced over 7,400 boe (54% oil) over the past 7 days. The well is currently flowing 685 bbl/d of 36 degrees API light oil and 3.5 MMcf/d of raw natural gas while choked back to approximately a 30% drawdown rate. The 2-13 well is tied in and flowing into Strategic's sales pipeline. It is approximately 3 miles from the Muskeg horizontal well 14-35 which was drilled and tested at 1,060 boe/d in the first quarter of 2016. Production results from the 2-13 and 14-35 wells are encouraging and demonstrate repeatability in the large areal extent of the Muskeg play. Strategic has now tied in the first of the five Muskeg wells drilled in this prolific zone at West Marlowe, where the company has identified seventeen additional locations for near-term drilling. The company achieved further drilling efficiencies with longer horizontal laterals and completed additional stages per well to increase production performance. The wells were drilled 500 meters longer with an average lateral length of 1,900 meters and completed with 20 stages. Strategic is in the process of finishing completions on the recently drilled four well pad and will provide results as the wells come on line. Repeatability of well performance through the drilling and completion techniques used by Strategic in the development of this high impact play will remain a key focus. In addition to improving production performance, the company is also realizing cost savings relative to budget due to reductions in drilling days and economies of scale related to four well pad development.