Oil & Gas Non-Core Asset Divestiture Southern And

Oil & Gas Non-Core Asset Divestiture

Southern and Central Alberta 129 BOEPD (82% Oil and NGLs)

OPPORTUNITY HIGHLIGHTS • June 2013 net sales of 129 BOEPD; 82% oil and NGLs • 2P reserves of 499 mboe (72% oil & NGLs) with PV10 of $4.3 MM • 2013E operating cash flow of $0.8 MM • 7,488 net undeveloped acres; average working interest of 88% • Control of key production facilities • Extensive 3D seismic coverage • Low decline, oil weighted production with identified low risk drilling and recompletion upside, as well as waterflood optimization potential

Calgary Office 4250, 525 8th Ave SW Calgary, AB T2P 1G1 Phone: 403-509-0556 Introduction

Raymond James Ltd. (“Raymond James”) has been engaged to assist Strategic Oil & Gas Ltd. (“Strategic”) in divesting a package of non-core properties in southern Alberta at Conrad and Taber, and certain other central Alberta properties (the “Offering”).

Property Highlights Location Map Current Production (net) Pembina • 129 boe/d (82% oil and NGLs) at Conrad, Taber, and certain other central Alberta properties. Cheddarville • Conrad: 65 bbl/d (100% oil) from the Sawtooth member of the Ellis formation. Sylvan Lake Area • Taber: 30 bbl/d (100% oil) from the Glauconite and lower Mannville formations. • Other Properties: 34 boe/d (31% liquids) from Cheddarville (Ferrier, Strachan), the Sylvan Lake Area and Pembina. Drilling Inventory and Upside Potential • Conrad: 10+ infill drilling opportunities in the Sawtooth. • Taber: 3 net development wells, well reactivation and waterflooding. Also tertiary oil recovery opportunities. • Other properties: 2 (0.4 net) booked wells with infill drilling opportunities.

Reserves (net) as at June 1, 2013 Taber • Proven reserves of 276 mboe (75% oil & NGLs). • P+P reserves of 499 mboe (72% oil & NGLs) and before tax Conrad NPV 10% of $4.3 MM. Undeveloped Land (net) and Seismic Production Summary Land Summary • 7,488 net undeveloped acres (average working interest of 88%) with no imminent land expiries. Production Split Undeveloped Land Summary (Net Acres) YTD June 30, 2013 • 3D seismic coverage at Taber and Conrad. Total = 7,488 acres Gas 21% Operational Taber, 1,965 Conrad, • Q2 2013 field netback of $11.71/boe. 5,406 Facilities Oil • Control of production facilities at Conrad and Taber. 79% Other, 117

Property Summary Production (boe/d) Reserves NOI ($000s) % Oil & June % Oil & Proven % Oil & 2P Reserves % Oil & 2P BT NPV 10% 2012A NGLs 2013A NGLs (mboe) 1 NGLs (mboe) 1 NGLs ($000)1 2012A 2013F Conrad 60 100% 65 100% 111.3 100% 185.3 100% $1,410.8 $320.9 $560.2 Taber 36 100% 30 100% 48.9 100% 84.1 100% $232.8 $146.5 $83.7 Other Properties 44 115% 34 31% 115.3 40% 229.1 39% $2,675.9 $210.7 $166.3 Total 141 79% 129 82% 275.5 75% 498.5 72% $4,319.5 $678.0 $810.2 1. As per McDaniel & Associates Consultants Ltd. report as at June 1, 2013.

22 Divestiture Overview

Taber / Conrad -Township 10, Range 16 W4; Township 5-6, Taber / Conrad Location Map

Range 15-16 W4 12-24-010-16W4 vt (May 94) Glauconite D Pool - Oil Taber and Conrad – Glauconite and Sawtooth Oil Cum: 339k bbl

• The Cretaceous Glauconite formation at Taber and the Jurassic 07-14 -010-16W4 vt (July 94) Glauconite G – Pool Oil Sawtooth formation at Conrad are the target formations, and are Oil Cum: 104k bbl/d found at shallow depths of ~1,000 meters. 15-14-010-16W4 vt (July 96) Glauconite G Pool - Oil • The wells at Taber have a long reserve life and have been Oil Cum: 71k bbl producing medium gravity oil at a steady rate for several decades. Strategic Lands Target sands are the Basal Quartz Glauconitic and Lower Mannville which are characterized as having high porosity and permeability. 14-23-006-15W4 vt (June 81) The Quartzose or “true” Glauconitic sandstone channel facies form 14-06-006-15W4 vt (Nov 89) Ellis - Oil excellent reservoirs. In contrast, Lithic channel sandstones have Sawtooth - Oil Oil Cum: 83k bbl Oil Cum: 46k bbl poorer reservoir quality because of the abundant feldspars and lithic grains. As a result, lithic channels have been identified as prospective targets for horizontal drilling. 03-04-006-15W4 vt (July 65) • The wells at Conrad have a long reserve life and have been Ellis - Oil Oil Cum: 257k producing medium gravity oil at a steady rate for several decades. bbl Oil was first discovered in these reservoirs in the 1940’s. Production is from the Sawtooth Member of the Ellis formation at 1,000 meters; Sawtooth formation is a series of sands lapping a Mississippian high. • Formations provide significant original oil in place storage capacity. Property Summary • At Taber and Conrad, Strategic holds 75% to 100% working interest in approximately 15 sections and is the operator. • Net production is 95 bbl/d (100% oil). • Strategic operates 22.9 net active producing wells on the properties, all exhibiting low production decline rates. • Both properties have upside with infill drilling locations based on 3D seismic as well as water injection optimization. Cost to drill, complete and tie-in range from $600k for a vertical well, to approximately $1.1 million for a horizontal well. Also, at both Taber and Conrad there is enhanced oil recovery upside. • Extensive 3D seismic coverage at Taber, also coverage at Conrad. • Operator on 11.5 net sections of undeveloped land, including 9.25 net sections (6.5 at Conrad; 2.75 at Taber) with rights from the surface to the basement. • Identified horizontal and vertical infill drilling opportunities. • Owned and operated facilities.

Taber / Conrad Production History

bbl/d Oil Production (bbl/d) 160

140

120

100

0 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

33 Divestiture Overview

Conrad - Township 5-6, Range 15-16 W4 Property Summary • Strategic has over 5,400 net undeveloped acres of land with an average 96% working interest at Conrad. This property provides significant upside with over 10 possible infill drilling opportunities in the Sawtooth member of the Ellis Group. Overview • Current production is 65 bbl/d of medium gravity (23° API) oil production with low decline rates. • 13.9 net producing wells. • 2P reserves of 185 mboe (100% oil & NGLs) with a before tax NPV 10% of $1.4 MM. • 1H 2013 field netback of $15.50/bbl with Q2 2013 field netback of $18.74/bbl. • 7.4 km2 of licensed 3D seismic. • Owned and operated production facility with a central battery at 02-04-006-15W4.

Conrad Location Map Conrad Property Summary (6 Months Ending June 30, 2013) June Production Strategic Lands Strategic Oil Wells Oil (bbl/d) 65 NGLs (bbl/d) 0 Natural Gas (mcf/d) 0 Average Daily Production (boe/d) 65 Reserves Proved (mboe) 111.3 Proved plus Probable (mboe) 185.3 % Oil & NGLs 100% 2P PV10 Before Tax (000s) $1,411 Net Operating Income Revenue ($/boe) $71.40 Royalties ($/boe) $2.59 Operating Expenses ($/boe) $53.31 Field Netback ($/boe) $15.50 YTD Net Operating Income $183,609 2013E Net Operating Income1 $560,203

1. 2013F NOI = 1H 2013A NOI + 2H 2013F NOI. 2H 2013F NOI is based on average June production reduced at an assumed decline rate of 15% per annum and updated for actual July commodity prices

Production History

bbl/d Oil Production (bbl/d) 70

0 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

44 Divestiture Overview

Overview Conrad - Unquantified Upside Potential • The reservoir target is a sheet sandstone of the Sawtooth Formation (a unit of the Jurassic Ellis Group). • With the potential for additional infill well locations and utilization of enhanced recovery methods, significant reserves upside is possible. • Also, land sales to the immediate west of the property have garnered significant prices.

Infill drilling Opportunities and Enhanced Recovery • Infill Drilling and Workovers: Incremental oil production is expected to be added at Conrad from infill drilling (10+ locations), workovers and pump changes.

• Significant Waterflood Upside Potential: The 03-04-006-15W4 well realized a 10x increase in oil production rates due to increased water injection.

• Horizontal Drilling: Upside potential has already been proven by employing horizontal drilling techniques within the Sawtooth reservoir. The advantages of the horizontals over verticals have been demonstrated by recent well success adjacent to Strategic’s Conrad properties at 10-20-5-14 (IP90: 79 bbl/d ) and 11-17-5-14 (IP90: 56 bbl/d of oil).

• Enhanced Recovery: Simulation work conducted by Strategic has shown that significant upside reserves exist through the reconfiguration of existing wells and use of chemical flooding. The Sawtooth is an ideal candidate for chemical flooding using Surfactant Polymer with the sheet-like, highly porous reservoir being contained between an impermeable base and caprock within the South Conrad field. • Over 2.0 mmbbl of recoverable reserves by using a chemical flood.

Conrad Location Map Waterflood Upside Potential

Strategic Lands Strategic Oil Wells

Oil rate increased from 2 bbl/day to 20 bbl/day in 03-04 well as a result of increase in water disposal in nearby well

Conrad Reserves and Operational Data • Effective June 1, 2013 using the McDaniel June 1, 2013 forecast pricing, McDaniel prepared an independent reserves evaluation of Strategic’s property at Conrad. McDaniel estimates that the Conrad property contains remaining proved plus probable reserves of 185.3 mboe (100% oil), with an estimated net present value of $1.4 MM at a 10% discount rate.

1. As per McDaniel & Associates Consultants Ltd. report as at June 1, 2013.

55 Divestiture Overview

Taber - Township 10, Range 16 W4 Property Summary

• Strategic has over 1,950 net undeveloped acres with 91% working interest at Taber. This property provides significant upside with infill drilling opportunities in the Glauconite Zone. Strategic’s wells at Taber have a long reserve life and have been producing medium gravity oil at a steady rate for several decades.

Overview

• Stable production with net current production of 30 bbl/d of medium gravity (23° API) oil production with low decline rates • 12 gross (9 net) producing wells. • 2P reserves of 84 mboe (100% oil & NGLs) with a before tax NPV 10% of $0.23 MM. • 18 km2 of licensed 3D seismic. • 75% owned and operated production facility - central battery at 03-24-010-16W4. • Upside via low risk infill drilling. • Waterflood optimization potential along with chemical surfactant EOR upside. • Potential onsite power generation would significantly increase field netbacks.

Taber Location Map Taber Property Summary (6 Months Ending June 30, 2013) June Production Strategic Lands Oil (bbl/d) 30 Strategic Oil Wells NGLs (bbl/d) 0 Natural Gas (mcf/d) 0 Average Daily Production (boe/d) 30 Reserves Proved (mboe) 48.9 Proved plus Probable (mboe) 84.1 % Oil & NGLs 100% 2P PV10 Before Tax (000s) $233 Net Operating Income Revenue ($/boe) $71.48 Royalties ($/boe) $0.69 Operating Expenses ($/boe) $73.62 Field Netback ($/boe) -$2.83 YTD Net Operating Income -$15,149 2013E Net Operating Income1 $83,720

1. 2013F NOI = 1H 2013A NOI + 2H 2013F NOI. 2H 2013F NOI is based on average June production reduced at an assumed decline rate of 15% per annum and updated for actual July commodity prices

Production History bbl/d Oil Production (bbl/d) 80 70 60 50 40 30 20 10 0 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

66 Divestiture Overview

Taber – Upside Potential Overview

• The wells at Taber have a long reserve life and have been producing medium gravity sweet oil at a steady rate for several decades. Target sands are the Basal Quartz and Glauconite of the Lower and Upper Mannville Groups which are characterized as having high porosity and permeability. Infill Drilling Opportunities and Enhanced Oil Recovery • Infill Drilling and Optimization: Significant incremental reserves are to be realized at Taber including development wells to capture by-passed pay in the reservoir, well reactivations and injector conversions. • Based upon 3D seismic, Strategic has identified 4 unbooked infill drilling locations situated within different channel sandstones of its North Taber field. Northeast of the field, 2 infill locations occur within a distinct Lithic Glauconite Channel. To the west of the field, 2 additional locations are situated within a distinct Quartzose Glauconite Channel. • Waterflood Optimization: Based upon simulation studies the Company has determined that there are areas of the field which have not been drained by the current well configuration and that incremental oil can be recovered. • Additional drilling and a comprehensive plan to optimize the waterflood can significantly increase reserves and recoverable oil. • Enhanced Oil Recovery: Potential for a tertiary flood scheme utilizing Surfactant Polymer (SP). • Husky has successfully employed an Alkali Surfactant Polymer (ASP) flood in the nearby Taber South (Warner) pool.

Taber Location Map

Strategic Lands Strategic Oil Wells Infill Drilling Potential

SEISMIC MAPPING Infill Drilling Potential Amplitude Anomalies

SEISMIC MAPPING Amplitude Anomalies

Lithic Glauconite Channel 2 Infill well locations

Quartzose Glauconite Channel 2 infill well locations

Taber Reserves and Operational Data

• Effective June 1, 2013 using the McDaniel June 1, 2013 forecast pricing, McDaniel prepared an independent reserves evaluation of Strategic’s property at Taber. McDaniel estimates that the Conrad property contains remaining proved plus probable reserves of 84.1 mboe , with an estimated net present value of $0.2 MM at a 10% discount rate.

77 Divestiture Overview

Central Alberta Overview • 34 boe/d (31% liquids); low decline, non-operated production, including: 25 boe/d at Cheddarville, 4 boe/d at Sylvan Lake/Garrington, and 5 boe/d at Pembina; producing formations include the Glauconite, Ellerslie, Cardium and Viking at Sylvan Lake/Ferrier, and the Cardium at Pembina and Garrington. • 2P reserves of 229 mboe (40% natural gas) with a before tax NPV 10% of $2.7 MM. • Average 21% working interest in 117 net acres of undeveloped land. • At Cheddarville (Ferrier/Strachan), Angle Energy has been actively drilling step-out wells into the Ferrier Cardium pool and realizing a 55% increase in IP90 production rates. Central Alberta Assets Location Map Central Alberta Property Summary (6 Months Ending June 30, 2013) June Production Oil (bbl/d) 1 Pembina NGLs (bbl/d) 10 Natural Gas (mcf/d) 142 Average Daily Production (boe/d) 34 Reserves Proved (mboe) 115.3 Proved plus Probable (mboe) 229.1 % Oil & NGLs 39% 2P PV10 Before Tax (000s) $2,676 Net Operating Income Revenue ($/boe) $33.05 Royalties ($/boe) $7.55 Operating Expenses ($/boe) $9.27 Field Netback ($/boe) $16.24 YTD Net Operating Income $100,710 2013E Net Operating Income1 $166,279

Cheddarville 1. 2013F NOI = 1H 2013A NOI + 2H 2013F NOI. 2H 2013F NOI is based on average June production reduced at an assumed decline rate of 15% per annum and updated for actual July commodity prices

Production Summary Undev. Land Summary Sylvan Lake Area Production Split Undeveloped Land Summary (Net Acres) YTD June 30, 2013 Total = 117 acres Cheddarville, Gas Cheddarvill67.2 69% e, 67.2 Sundre Garrington /Sylvan Lake Area, 50

Oil 31% Production History boe/d Oil NGLs Natural Gas 50

0 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

88 Divestiture Overview

Cheddarville: Ferrier and Strachan - Township 37-38, Range 7 W5; Township 37, Range 8 W5 Overview • At Cheddarville, Strategic holds a 26.25% working interest in one section of land at Ferrier on which there are 3 wells producing from the Cardium formation. At Strachan, Strategic holds a 16.25% working interest in 1.25 sections of land.

Recent Drilling Activity Cheddarville Property Summary (6 Months Ending June 30, 2013) • Recent drilling activity in the area by Angle Energy targeting the June Production Cardium has produced a 55% increase in IP90 production rates. Oil (bbl/d) 1 NGLs (bbl/d) 6 • In 2013, Angle has drilled 5 (3.3 net) Cardium horizontal wells Natural Gas (mcf/d) 110 immediately to the north of the Strachan property and directly west Average Daily Production (boe/d) 25 of the Ferrier property. The 16-09-038-08W5 Cardium well produced over 460 bbl/d of oil during a 10 day test in July 2013. Reserves Proved (mboe) 43.3 Cheddarville Assets Location Map Proved plus Probable (mboe) 105.5 % Oil & NGLs 29% 2P PV10 Before Tax (000s) $1,133 Strategic Ferrier Lands Net Operating Income Revenue ($/boe) $29.75 Angle Energy recent Royalties ($/boe) $5.74 Cardium hz wells Operating Expenses ($/boe) $9.98 Field Netback ($/boe) $14.04 16-09-038-08W5 Ferrier YTD Net Operating Income $63,705 2013E Net Operating Income1 $99,102 1. 2013F NOI = 1H 2013A NOI + 2H 2013F NOI. 2H 2013F NOI is based on average June production reduced at an assumed decline rate of 15% per annum and updated for actual July commodity prices

Strachan

Production History

boe/d Oil NGLs Natural Gas 45 40 35 30 25 20 15 10 5 0 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

Cheddarville Area Reserves and Operational Data . Effective June 1, 2013 using the McDaniel June 1, 2013 forecast pricing, McDaniel prepared an independent reserves evaluation of Strategic’s property at Ferrier. McDaniel estimates that the Ferrier property contains remaining proved plus probable reserves of 105.5 mboe (29% oil & NGLs), with an estimated net present value of $1.1 MM at a 10% discount.

Property Summary Production (boe/d) Reserves NOI ($000s) % Oil & June % Oil & Proven % Oil & 2P Reserves % Oil & 2P BT NPV 10% 2012A NGLs 2013A NGLs (mboe) 1 NGLs (mboe) 1 NGLs ($000)1 2012A 2013F Cheddarville 30 29% 25 27% 43.3 24% 105.5 29% $1,132.8 $110.5 $99.1 1. As per McDaniel & Associates Consultants Ltd. report as at June 1, 2013.

99 Divestiture Overview

Sylvan Lake Area/Garrington - Township 47, Range 7 W5; Township 34, Range 4 W5 and Township 33, Range 2 W5

Overview • At Sylvan Lake, Strategic holds a 12.1% to 26.25% working interest in 260 net acres of land on which there are 4 wells producing from the Ellerslie and the Glauconite formations. The Company also holds 482 net acres of land at Garrington.

Sylvan Lake/Garrington Assets Location Map Sylvan Lake/Garrington Property Summary (6 Months Ending June 30, 2013) June Production Strategic Lands Oil (bbl/d) 0 NGLs (bbl/d) 2 Natural Gas (mcf/d) 17 Average Daily Production (boe/d) 4

10-08-034-04W5 vt (Feb 08) Reserves Strategic Working Interest: 18.5% Proved (mboe) 68.1 Glauconite - Oil Proved plus Probable (mboe) 118.2 Oil Cum: 51k bbl % Oil & NGLs 48% Nat Gas Cum: 1.4MM Mcf 2P PV10 Before Tax (000s) $1,407 Net Operating Income Revenue ($/boe) $35.44 16-08-034-04W5 vt (Nov 11) Royalties ($/boe) $9.47 Strategic Working Interest: 18.5% Operating Expenses ($/boe) $8.37 Glauconite - Oil Field Netback ($/boe) $17.60 Oil Cum: 20k bbl YTD Net Operating Income $13,923 2013E Net Operating Income1 $22,319

1. 2013F NOI = 1H 2013A NOI + 2H 2013F NOI. 2H 2013F NOI is based on average June production reduced at an assumed decline rate of 15% per annum and updated for actual July commodity prices

Production History boe/d Oil NGLs Natural Gas 12

0 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 Sundre/Sylvan Lake Area Reserves . Effective June 1, 2013 using the McDaniel June 1, 2013 forecast pricing, McDaniel prepared an independent reserves evaluation of Strategic’s property at Sylvan Lake. McDaniel estimates that the Sylvan Lake property contains remaining proved plus probable reserves of 118.2 mboe (48% oil & liquids) with an estimated net present value of $1.4 MM using forecast pricing at a 10% discount.

Property Summary Production (boe/d) Reserves NOI ($000s) % Oil & June % Oil & Proven % Oil & 2P Reserves % Oil & 2P BT NPV 10% 2012A NGLs 2013A NGLs (mboe) 1 NGLs (mboe) 1 NGLs ($000)1 2012A 2013F Sylvan Lake/Garrington 9 32% 4 35% 68.1 50% 118.2 48% $1,406.7 $51.5 $22.3 1. As per McDaniel & Associates Consultants Ltd. report as at June 1, 2013.

10 Divestiture Overview

Pembina - Township 47, Range 7 W5

Overview

• At Pembina, Strategic holds a 26.25% working interest in one section of land on which there is one natural gas well producing from the Rock Creek formation. Recent sales net to the Company have averaged approximately 5 boe/d.

Pembina Assets Location Map Pembina Property Summary (6 Months Ending June 30, 2013) Production Strategic Oil (bbl/d) 0 Pembina Lands NGLs (bbl/d) 3 Natural Gas (mcf/d) 14 Average Daily Production (boe/d) 5 Reserves Proved (mboe) 3.9 Proved plus Probable (mboe) 5.4 % Oil & NGLs 52% 2P PV10 Before Tax (000s) $136 Net Operating Income Revenue ($/boe) $48.05 Royalties ($/boe) $15.22 Operating Expenses ($/boe) $6.39 Field Netback ($/boe) $26.43 YTD Net Operating Income $23,685 2013E Net Operating Income $44,858 1. 2013F NOI = 1H 2013A NOI + 2H 2013F NOI. 2H 2013F NOI is based on average June production reduced at an assumed decline rate of 15% per annum and updated for actual July commodity prices

Production History

boe/d Oil NGLs Natural Gas 12

0 Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13

Pembina Area Reserves . Effective June 1, 2013 using the McDaniel June 1, 2013 forecast pricing, McDaniel prepared an independent reserves evaluation of Strategic’s property at Pembina. McDaniel estimates that the Pembina property contains remaining proved plus probable reserves of 5.4 mboe, with an estimated net present value of $136,000 at a 10% discount.

11 Divestiture Overview

Reserves Summary (as per McDaniel & Associates Ltd. report as at June 1, 2013)

Summary of Reserves PDP Proven 2P Reserves % Oil & Reserves % Oil & Reserves % Oil & (mboe) NGLs (mboe) NGLs (mboe) NGLs Conrad 111.3 100% 111.3 100% 185.3 100% Taber 48.9 100% 48.9 100% 84.1 100% Cheddarville 43.3 24% 43.3 24% 105.5 29% Pembina Area 3.9 51% 3.9 51% 5.4 52% Sylvan Lake Area 68.1 50% 68.1 50% 118.2 48% Total 275.5 75% 275.5 75% 498.5 72%

Net Present Value of PDP Reserves ($000) Before Income Taxes Discounted at 0% 5% 10% 15% 20% Conrad $1,002.9 $925.6 $853.9 $793.4 $743.1 Taber -$0.2 $42.4 $69.8 $87.9 $100.3 Cheddarville $798.8 $659.8 $559.8 $485.6 $429.0 Pembina Area $113.4 $106.3 $99.9 $94.2 $89.2 Sylvan Lake Area $1,435.1 $1,196.8 $1,031.7 $910.4 $817.4 Total $3,350.0 $2,930.9 $2,615.1 $2,371.5 $2,179.0

Net Present Value of Proven Reserves Before Income Taxes Discounted at 0% 5% 10% 15% 20% Conrad $1,002.9 $925.6 $853.9 $793.4 $743.1 Taber -$0.2 $42.4 $69.8 $87.9 $100.3 Cheddarville $798.8 $659.8 $559.8 $485.6 $429.0 Pembina Area $113.4 $106.3 $99.9 $94.2 $89.2 Sylvan Lake Area $1,435.1 $1,196.8 $1,031.7 $910.4 $817.4 Total $3,350.0 $2,930.9 $2,615.1 $2,371.5 $2,179.0

Net Present Value of 2P Reserves Before Income Taxes Discounted at 0% 5% 10% 15% 20% Conrad $2,124.3 $1,714.1 $1,410.8 $1,187.1 $1,019.1 Taber $279.3 $258.2 $232.8 $208.4 $186.7 Cheddarville $2,012.8 $1,480.2 $1,132.8 $895.1 $725.6 Pembina Area $164.8 $149.3 $136.4 $125.4 $116.1 Sylvan Lake Area $2,442.0 $1,785.2 $1,406.7 $1,160.2 $987.0 Total $7,023.2 $5,387.0 $4,319.5 $3,576.2 $3,034.5

12 Divestiture Overview PROCESS Strategic has initiated a process for the divestiture of its non-core properties at Conrad , Taber and certain other central Alberta properties (the “Properties”). Raymond James has been engaged by Strategic as its exclusive financial advisor to assist in this process. Raymond James will coordinate all aspects of this process and will act as the sole contact for all parties who have expressed an interest in acquiring the assets (“Interested Parties”). A physical data room has been established in the offices of Raymond James located in Suite 4250 of Eighth Avenue Place, 525 8th Ave SW, Calgary, Alberta. This data room will provide detailed corporate, operational and financial information; additional detailed technical information on Strategic’s assets will available at the offices of Strategic.

Strategic and Raymond James expressly reserve the right at any time to amend or terminate these sale procedures, to decline to permit an Interested Party to participate in the process, to terminate discussions with any or all Interested Parties, to reject any or all offers or to negotiate with any party with respect to a possible transaction.

Upon receipt of a signed confidentiality agreement from Interested Parties, Raymond James will arrange for data room access. Please contact Kaushik Sudharsanam via email at [email protected] to obtain a confidentiality agreement.

Bids are due on October 25, 2013. Preference will be given to bids for the entire package, but bids for individual properties will also be considered. All bids should be sent to Gregg Delcourt via email at Raymond James.

CALENDAR

September 2013 October 2013 S M T W T F S S M T W T F S 1 2 3 4 5 6 7 1 2 3 4 5 8 9 10 11 12 13 14 6 7 8 9 10 11 12 15 16 17 18 19 20 21 13 14 15 16 17 18 19 22 23 24 25 26 27 28 20 21 22 23 24 25 26 29 30 27 28 29 30 31

Data Room Open Effective Date Holiday Bids Due

CONTACT Raymond James will act as the sole contact for all Interested Parties. The directors, officers and employees of Strategic should not be contacted directly. All communications and inquiries from Interested Parties should be directed to the representatives listed below:

Gregg Delcourt Kaushik Sudharsanam Managing Director, Investment Banking Investment Banking Raymond James Ltd. Raymond James Ltd. Suite 4250, 525 8th Ave SW Suite 4250, 525 8th Ave SW Calgary, AB Calgary, AB

Direct: 403.509.0556 Direct: 403.509.0539 Email: [email protected] Email: [email protected]

13 Divestiture Overview

DISCLAIMER This Information Memorandum (the “Memorandum”) has been prepared solely for informational purposes from information supplied by Strategic Oil & Gas Ltd. (“Strategic or the Company”) and is being furnished through Raymond James Ltd. (“Raymond James”) solely for use by prospective parties in considering their interest in participating in transactions involving the Properties.

The information contained herein has been prepared to assist interested parties in making their own evaluation of the Properties and does not purport to contain all of the information that a prospective party may desire. In all cases, interested parties should conduct their own investigation and analysis of the Properties and of the data set forth in this Memorandum. Although this information is believed by the Company and Raymond James to be correct and accurate in all material aspects as of the date of this Memorandum, the Company and Raymond James disclaim any and all liability for the statements contained herein and make no representation or warranty as to the completeness or accuracy of the enclosed package or the information contained herein, or for any omissions from, or any other written material furnished or information orally transmitted to a prospective purchaser by the Company or Raymond James, or any officer, director, partner, shareholder, employee, agent, or representative thereof. Any representations concerning the Properties will be made only by the Company and only in a definitive agreement documenting a transaction between the Company and any prospective party. In particular, the Company and Raymond James are not making and will not make any representation or warranty of any kind as to the amount of “in place” or recoverable oil and gas reserves (proved, probable or otherwise) attributable to the Properties, as to geological and engineering interpretations related thereto or as to prices that will be received for this production. The Company and Raymond James reserve the right to change materials in this package or any other information that may be available to prospective purchases at any time, whether by revision of existing material or addition of new material.

The Company reserves the right to negotiate with one or more prospective parties at any time and to enter into a definitive agreement for a transaction without prior notice to you or to other prospective parties. The Company also reserves the right to terminate, at any time, further participation in the due diligence and proposal processes by any party and to modify any procedures without assigning any reason therefor. The Company intends to conduct its business in the ordinary manner during the evaluation; however, the Company reserves the right to take any action, whether in or out of the ordinary course of business, which it deems necessary or prudent in the conduct of such business. The information provided in this Memorandum is as of September 2013 and is subject to change.

The recipient or its agents will have no direct or indirect contact with the Company or any of its employees, agents or representatives, unless specifically approved by Raymond James. Any inquiries regarding this transaction should be directed to the contact persons listed at Raymond James. Raymond James is the sole party authorized by the Company to seek offers for the Properties. No fee will be paid by the Company or Raymond James to any broker or finder in connection with the proposed transaction.