Striker Oil & Gas Continues Revenue Growth Strategy
Striker Oil & Gas, Inc. (OTCBB:SOIS) continues to build upon the investments made in 2007 for acquiring and developing new properties. We have experienced an increase in oil and gas production and reserves year to year from 2007 to 2008. We continue to implement our drilling program during 2008 as we continue our strategy to grow the company through acquisition and development.
Our drilling and acquisition program in 2007 resulted in the addition of 258,426 barrels of oil and 908,320 Mcf of gas in proved reserves to our holdings. In early June 2008 we completed the second well drilled on our Catfish Creek Prospect located in East Texas. Consulting geologists’ reports indicate that this prospect could result in 20 to 40 wells. We recently committed to drilling three more wells over the next three to six months. We continue to evaluate additional drilling and acquisition prospects.
Our reserves were valued at $20M as of December 31, 2007, based upon the standardized measure of discounted future net cash relating to proved reserves method of valuing petroleum reserves. This is a $16M, or 447% increase, over the prior year.
Our oil and gas production increased on a year-to-year basis. 2007 oil production increased 112%, or 16,988 net barrels, over 2006 levels, from 15,172 net barrels in 2006 to 32,160 net barrels in 2007. In addition we added significant gas production of 110,456 Mcf in 2007 compared to none in 2006. This new production coupled with higher oil and gas prices led to record revenues for Striker. Our revenue was up 233% compared to the previous year. The company also increased its gross profit from oil and gas operations 217% for the same period to $2,182,710. As a result, Striker has been able to substantially narrow its operating losses.
In addition, in an effort to further increase revenues from our existing production, the company has entered into an agreement to install a 4-mile gas pipeline to connect its gas production from its Catfish Creek Prospect.
As previously disclosed we have been able to narrow our loss from operations (before non-cash charges) from a loss of $1.8M in 2006 to a loss of $960K in 2007.
We are forecasting revenues of $5M for 2008. We believe that proven efforts to increase production and reserves will have a positive effect on our shareholder value, thus lowering our cost of capital and allowing us to further expand our already successful drilling and acquisition program.
About Striker Oil & Gas
Striker Oil & Gas, Inc. is an upstream U.S. oil and gas company headquartered in Houston, Texas and traded on the Over-the-Counter Bulletin Board (SOIS.OB). The company is engaged in the search for and sale of oil and gas reserves through both exploratory drilling and the acquisition of producing properties. Striker’s objective is to cost efficiently develop these properties and market the oil and gas production at the wellhead. Striker is strategically focused along the Texas Gulf Coast, East Texas and South Louisiana in areas of developed infrastructure and established markets. For information please visit www.strikeroil.com.
Safe Harbor Statement
This press release contains statements that may constitute forward-looking statements, including the company’s ability to successfully acquire oil and gas properties and drill commercial wells. These statements are based on current expectations and assumptions and involve a number of uncertainties and risks that could cause actual results to differ materially from those currently expected. For additional information about Striker’s future business and financial results, refer to our Quarterly Reports on Form 10-QSB, our Annual Report on Form 10-KSB and the other filings we make with the Securities and Exchange Commission. Striker undertakes no obligation to update any forward-looking statements that may be made from time to time by or on behalf of the company, whether as a result of new information, future events or otherwise.
Striker Oil & Gas, Inc., Houston Kevan Casey, 713-402-6700
Source: Striker Oil & Gas, Inc.