Strat Petroleum Reaches Agreement for Implementation of Sludge Processing Solution

Strat Petroleum, Ltd., an emerging exploration and development company focusing on oil and gas opportunities in the Russian Federation, today announced the results of their recent trip to Russia. While overseas, Company management presented their solution for the treatment of oil sludge to Rosneft’s operation in the Stavrapol Region and to a number of local oil and chemical companies at the Academy of Science in Bashkorstan.

The end results of the presentations were very positive. Strat was able to sign a joint working agreement directly with the Academy to process an additional 2 million tons of sludge.

The Stavrapol presentation also proved fruitful as the Company was able to gain acceptance of its solution by Rosneft for application to that company’s numerous sludge pools in the Region. Strat is currently completing a proposal that would see a pilot plant installed in early 2007, followed by plants at additional locations as determined.

Rosneft is the world’s second largest company in terms of proved SPE oil reserves and Russia’s second-largest hydrocarbon producer with production of over 1.72 million bpd. Headquartered in Moscow, the Company also owns two refineries, which have a combined capacity of 10 million tons per year, as well as four main oil export terminals and a nationwide network of over 600 service stations. In 2005, the company’s revenues exceeded $24 billion USD.

In order to capitalize expeditiously on these opportunities, Strat is working in conjunction with its technical and chemical consultants towards completing the design and specifications for the pilot sludge processing plant expected to be installed by the middle of Quarter 1, 2007.

About Strat Petroleum:

Strat Petroleum is an emerging exploration and development company focusing on investment in oil and gas properties and other related projects in the Russian Federation. For more information, please visit the company website at www.stratpetroleum.com. The company’s phone numbers are: 905-761-9169 (main), 416-628-8018 (fax) and 646-216-9751 (U.S.).

Investor Relations/Corporate Communication Lynx Consulting Group, Inc.

+1 (858) 488-4049

http://www.lynxir.com/

Statements made in this press release regarding the Company’s or management’s intention, beliefs, expectations, or predictions for the future are forward-looking statements. Such forward-looking statements are subject to a number of risks, assumptions and uncertainties that could cause the Company’s actual results to differ materially from those projected in such forward-looking statements. These risks, assumptions and uncertainties include: the ability to compete effectively in a rapidly evolving and price competitive marketplace; uncertainties of completing business transactions; uncertainties of raising necessary capital; no control over long term pricing; possible reductions in demand for our products and services due to competition or changes in industry conditions or political environment; changes in the nature of energy regulation in the Russian Federation, the United States and other countries; political risk; currency exchange risk; changes in business strategy; the successful integration of newly-acquired businesses; the impact of technological change; reliance on management and management contacts; and other risks that may be referenced from time to time in the Company’s filings with the Securities and Exchange Commission.

Contact:

Lynx Consulting Group, Inc. Investor Relations/Corporate Communication

Michael Sobeck, +1 858-488-4049

http://www.lynxir.com/

Source: Strat Petroleum, Ltd.