Stratic Energy Corporation - Second Quarter 2008 Results



    CALGARY, Aug. 28 /CNW/ - Stratic Energy Corporation (TSX Venture: 'SE',
AIM 'SE.') ("Stratic" or the "Company") has today filed its interim financial
statements and accompanying Management's Discussion and Analysis for the
quarter ended June 30, 2008. In addition an Annual Information Form has been
filed. These filings can be accessed at www.sedar.com and on the Company's
website www.straticenergy.com.

    Highlights in Q2 2008:

    Developments:

    
    -   West Don project in UK North Sea on track for first oil at end Q1
        2009: field development approved by UK government in May 2008 and
        development drilling commenced in August 2008

    -   Operator's proposed development plan for the Longanesi gas discovery
        in Italy finalised; development plan, production licence and
        environmental permit applications in process of being submitted

    -   Development planning for Crawford oil project in UK North Sea
        continues following successful 2007 appraisal well; submission of
        field development plan targeted by end 2008

    -   Lower risk P/8 development option in Netherlands sector of North Sea
        being assessed; development activity deferred until 2009

    Exploration and Appraisal:

    -   Drilling commenced in August 2008 of appraisal well to test high
        potential eastern extension of Breagh gas discovery in UK North Sea;
        to be followed by high angle/horizontal well on West Breagh

    -   Scheduled November 2008 well spud date on Cairngorm oil discovery in
        UK North Sea using the Byford Dolphin semi-submersible drilling unit,
        to test potentially high productivity of reservoir

    -   Well planning being advanced for early 2009 appraisal of Bowmore
        condensate discovery in UK North Sea

    -   Nasrani gas prospect in block 17, Syria approved for drilling - rig
        negotiations advanced for well spud by early 2009

    Financial (all amounts in US dollars)

    -   Gas sales revenues in Turkey of $2.5 million in Q2 (2007:
        $0.7 million) with production in the quarter of 260.3 mmscf (2007:
        79.5 mmscf) from 3 fields, up from one field in the prior year

    -   Net loss for quarter of $6.5 million (2007: $6.7 million)

    -   New finance for development and exploration raised totaling
        $192.5 million

    -   Capital expenditure for 2008 projected at approximately $100 million,
        approximately half on developments and half on exploration/appraisal.
    

    Kevin Watts, Stratic's President and Chief Executive Officer, commented:

    "We are now only 7 months away from the planned West Don production
start-up, which will generate significant revenue for the company for the
first time. At $100 a barrel oil prices, our share of the field is estimated
to net $100 million of operating cash flow over the first 12 months of
production, which will allow us to explore more aggressively and expand
further our drilling campaign, recently commenced with the Breagh well. Over
the next year from now we have drilling planned to target net unrisked
resources of over 3 times our existing booked reserves, and if successful this
would transform Stratic's asset base. In addition, we continue to evaluate
value adding portfolio management opportunities, and overall look forward to
an important period in the development of the company."

    OPERATIONS UPDATE

    
    United Kingdom sector of the North Sea
    --------------------------------------
    
    Stratic's UK portfolio consists of interests in five UK oil and gas
discoveries which are planned or being appraised for development, plus
exploration acreage.
    Development approval for the West Don Field (block 211/13b; West Don
unit: Stratic 17.25%) was received from the United Kingdom government on
22 May, 2008. Since then, development activity has gained momentum, with
onshore construction of the subsea equipment progressing well and offshore
activity commenced in the field area in early August. The Apache pipelay barge
is currently laying the infield flowlines, and the Transocean John Shaw
drilling unit spudded the first of three West Don development wells on
22 August. It will complete the drilling of the West Don development wells
before moving on to Don Southwest. The project remains on schedule for first
oil at the end of Q1 2009 and is currently running within budget.
    Activity on the Crawford Field (block 9/28a Area B; Stratic 19.00%) has
focussed on integrating the new well data and completing the reservoir
modelling. The field operator Fairfield expects to submit the FDP by the end
of the year. Progress has been made on production offtake options, with full
technical and commercial terms received from nearby infrastructure owners and
an ongoing review of floating production options.
    Appraisal activity on the Breagh Field (blocks 42/12 & 42/13; Stratic
10%) has commenced with the arrival of the Ensco 70 jack-up drilling unit. The
first of two wells, spudded in August, will target East Breagh, a potentially
substantial extension to the West Breagh accumulation, the second will be a
high angle appraisal/production well at West Breagh, investigating the
potential for increased productivity from a horizontal reservoir completion.
1,533 km of new 2D seismic data was acquired over blocks 42/8 and 42/9
(Stratic 10%) to the north of the Breagh accumulation to aid in the further
evaluation of the exploration potential of this acreage.
    Preparation for drilling the 16/2-5 Cairngorm appraisal well (blocks
16/2b & 16/3d, Stratic 50% and operator) continues with the detailed design of
the well and evaluation of a number of testing options. A slot has been
secured on the Byford Dolphin semi-submersible drilling unit for spud in late
November 2008.
    In the Quad 15 blocks (Stratic 30%), the operator, Nippon is progressing
with plans to drill an appraisal well on the Bowmore discovery early in 2009.
The Bowmore appraisal well will test the joint venture's model of a deeper
condensate/water contact and a thickening sand section down dip, which, if
proven would significantly increase the existing level of discovered resource.

    
    Netherlands sector of the North Sea
    -----------------------------------
    
    It is likely that the P8 development (P8a; post unitisation Stratic 48%)
in the Netherlands will be deferred into 2009 while partners investigate a
lower risk development option to the existing extended reach well proposed by
Chevron. Detail on alternative development plans is awaited from operator
Chevron.
    On the F Quad blocks (F14, F16, F17a, F18, L01b, shallow oil horizons
only; Stratic 60%) work is nearing completion on the interpretation of the 3D
seismic data purchased by the partnership. On the basis of this, any drilling
is likely to commence in late 2009/early 2010.

    
    Italy
    -----
    
    In Italy we are close to submitting the development plan for Longanesi
(formerly Abbadesse). The development plan prepared by operator Eni
encompasses the key components required for the development, and will form the
basis for the application by Stratic for a new production concession,
Bagnacavalo.
    Stratic has been awarded two exploration permits, one in the Po Valley to
the north of San Marco, and one just offshore in the Faro area of the Adriatic
Sea. The licences have a term of five years and require Stratic to purchase
seismic data, evaluate and drill a well on each (on a drill or drop basis).

    
    Turkey
    ------
    
    Production in Turkey has been choked back by operator TPAO to just over
15mmscf/d for reasons of reservoir management and offtake modulation.
Production performance from the Akkaya and Ayazli fields remains relatively
stable, however the East Ayazli wells are still suffering mechanical problems
resulting in intermittent production.
    The phase 2 project for development of the Akcakoca discoveries continues
to advance towards an investment decision; operator TPAO plans to brief
partners on progress before the end of August.

    
    Syria
    -----
    
    On Block XVII (Stratic 35%, operator) a well location has been agreed by
partners and a rig has been identified drilling the Nasrani prospect to test
the extension of the Kurrachine Dolomite play into Block XVII. The well will
be deepened to further appraise two deeper sandstone targets also known to be
productive in the area. Current expectations are for the well to spud by early
2009.

    
    Morocco
    -------
    
    No significant activity was undertaken on the Guercif licences during
this period (Stratic 20%, paying 0%).

    
    Slovenia
    --------
    
    An internal review of the Petisovci-Dolina licence has been initiated to
investigate the potential for a near term intervention programme (Stratic
45.1%).

    
    Tunisia and Romania
    -------------------
    
    No significant activity was undertaken on these licences pending
completion of the divestment transactions agreed late in 2007, which is
expected shortly.

    About Stratic: Stratic Energy Corporation is a Canadian-incorporated
international oil and gas business focused on adding value principally through
the appraisal, development and production of existing discoveries,
supplemented by a low to moderate risk exploration programme. Stratic's
principal interests are in the UK and Dutch sectors of the North Sea, Italy,
Turkey and Syria. Its shares are listed on the TSX Venture Exchange in Toronto
and on AIM, London and its principal operating office is in London, UK.

    Forward-looking statements

    This news release contains certain forward looking statements, which
involve assumptions with respect to future plans, production levels and
results, and capital expenditures. The reader is cautioned that all such
forward looking statements involve substantial risks and uncertainties and the
assumptions used in their preparation may not prove to be correct. Stratic's
actual results could differ materially from those expressed in, or implied by,
these forward looking statements and accordingly, the forward looking
statements are qualified by reference to these cautionary statements. The
forward looking statements contained herein are made as at the date of this
news release. Stratic undertakes no obligation to update or publicly revise
forward looking statements or information unless so required by applicable
securities laws.

    TSX-V and AIM notifications

    
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the contents of this
    release.
    

    Stratic's Chief Operating Officer, Dr Mark Bilsland BSc (geology), PhD
(petroleum petrophysics), and member of the SPE, is the qualified person who
has reviewed and approved the technical information in this announcement for
the purposes of the AIM Rules for Companies (incorporating the Guidance Note
for Mining, Oil and Gas Companies).





For further information:

For further information: Kevin Watts, Chief Executive Officer, +44 20
7766 7900; John van der Welle, Chief Financial Officer, +44 20 7766 7920; Mark
Bilsland, Chief Operating Officer, +44 20 7766 7900; Patrick d'Ancona,
M:Communications, +44 20 7153 1547; Canadian Investor Relations, Roger
Fullerton, (952) 929-7243, Email: roger.fullerton@straticenergy.com, Website:
www.straticenergy.com

Organization Profile

STRATIC ENERGY CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890