TIDMSE. 
 
RNS Number : 8560G 
Stratic Energy Corporation 
09 February 2010 
 

 
 
                                  NEWS RELEASE 
 
                        Business Update and 2010 Outlook 
 
CALGARY and LONDON, February 9, 2010 - Stratic Energy Corporation (TSX Venture: 
'SE', AIM 'SE.') ("Stratic" or the "Company") is pleased to provide a business 
update and review of its plans for 2010. 
 
The Company also announces that a conference call will take place today at 12 
noon Eastern Time (5pm London Time) during which a question and answer session 
on the Company's portfolio and strategy will be held. Call in details may be 
found at the end of this press release. 
 
Overview 
 
·     West Don 2009 gross production 1.89 mmbbls (equivalent to an annualised 
average of 5,151 bopd, 892 bopd net to Stratic) 
 
o  Water injection operational issues resolved, reservoir pressure showing signs 
of recovery 
o  Gas lift stability improved 
o  Tie in to Thistle/Brent pipeline system on schedule for February 2010 
completion 
o  Partnership investigating third production well to accelerate production from 
southern region of the field 
 
·     Crawford field development work continues on track, focusing on reducing 
costs and FDP submission by mid year 2010 
 
·     Planned participation in Bugle North well in Bowmore area, subject to 
Joint Well Agreement 
 
·     Completed drilling operations on Al Tayr 101 in Syria, well plugged and 
abandoned after unsuccessful testing 
 
·     Signed Letter of Intent for farm-out of F Quad acreage offshore 
Netherlands, to include a possible carried exploration well 
 
·     Completion of sale of Italian business on schedule for closing by end of 
first quarter 2010 
 
·     Amended bank facility provides new $10 million short-term line of credit 
and deferral of scheduled 2009 year end repayments of approximately $25 million, 
to be repaid out of Italian disposal proceeds 
 
·     Change in North Sea strategy and shift towards increased activity in lower 
cost international areas. 
 
Operations 
 
Production from Stratic's West Don field totalled 1.89 million barrels (mmbbls) 
(gross) for 2009, equivalent to 5,151 barrels of oil per day (bopd) on an 
annualised basis (892 bopd net to Stratic), ahead of the Company's November 
guidance of 1.75 million barrels. 
 
Operational stability has improved with the two producing wells responding to 
gas lift and issues around the water injection process resolved.  There are now 
clear signs of water injection support at the producing wells.  Progress towards 
the changeover from tanker export to a permanent pipeline export route is on 
track, with the shutdown for the changeover scheduled to commence shortly. The 
field is expected to be exporting from the Northern Producer, over the Thistle 
platform and into the Brent pipeline system, by the end of February. This will 
substantially improve operational uptime and processing plant stability. 
 
Operator Petrofac is planning a drilling campaign on the neighbouring Don 
Southwest field and we expect that a third production well will also be drilled 
in the southern sector of the West Don field as part of this campaign.  Pressure 
communication across the field has now been successfully demonstrated, which is 
expected to result in this well accessing incremental reserves as well as 
accelerating production from the southern area of the West Don field. 
 
The Crawford field continues to progress towards field development plan (FDP) 
submission and project sanction. Operator Fairfield is focusing on reducing 
costs of the development, and is investigating the possibility of a long term 
contract for a jack-up unit to conduct both drilling and production operations, 
as well as assessing the relative benefits of using multilateral completions 
rather than hydro fracturing for the Triassic development wells.  FDP submission 
is expected by mid year 2010, with the possibility of development activity 
commencing early in 2011 and first oil later that year. 
 
In the Bowmore licence area, discussions are being held with the licensees of 
the P815 licence (the Nexen operated block containing the Bugle discovery) 
regarding the drilling of a joint well close to the block boundary of the P815 
and P1465 licences. Stratic's participation in this well, which is subject to 
the satisfactory conclusion of a Joint Well Agreement between the parties, would 
qualify as the second of the two commitment wells required on licence P1465, 
after the 15/24a-9 Bowmore appraisal well drilled in 2009. This Nexen operated 
well will target a possible northern extension of the Bugle discovery, and is 
currently expected to spud during February using the Transocean Glomar Arctic IV 
semi-submersible drilling unit. 
 
In December, in line with licence requirements, blocks 16/3d, 210/19a and 
210/20a were relinquished.  Stratic held a 100% interest in each of these blocks 
and elected to relinquish the licences rather than commit to drill within a 
short timeframe at high equity levels.  Stratic expects to reapply in the 
recently announced 26th UK offshore licensing round for some or all of the 
relinquished acreage, and is in discussions with potential partners with a view 
to forming bidding groups. 
 
Following the conclusion of drilling operations on the Al Tayr 101 well in Syria 
that has been plugged and abandoned, Stratic and its partners are reviewing 
their position in block 17, which is shortly due to be extended or relinquished. 
 Although no decisions on block 17 have been made, the partnership remains 
encouraged by the prospectivity identified in Syria and will be evaluating 
further opportunities in the country over the coming months. 
 
Production in Turkey totaled 5.1 billion cubic feet (bcf) of gas in 2009, an 
average of 13.9 million cubic feet of gas per day (mmscf/d) (1.6 mmscf/d net to 
Stratic), in line with Ryder Scott's 2P production estimate.  Production 
remained steady throughout the year on the Ayazli and Akkaya fields, whilst 
production from the East Ayazli field was intermittent, with short bursts of 
production corresponding to the addition of incremental perforation intervals. 
At year end the East Ayazli field was shut-in. 
 
In a short drilling programme late in 2009, two exploration wells, West Ayazli 
and East Akkaya, were drilled by operator TPAO using the Saturn jack-up drilling 
unit. The West Ayazli well drilled to a total depth of 2,545 meters after 
encountering gas bearing Akcakoca sands between 643 and 763 meters. The 
uppermost of these sands was found to be pressure depleted, and so connected to 
the Ayazli field.  Sands encountered deeper in the section were found to be less 
depleted. These gas bearing sands were tested at 10 mmscf/d, and have been 
completed to allow cross flow from the lower sands into the upper intervals in 
communication with the Ayazli field. The East Akkaya well was drilled to a total 
depth of 1,400 meters, and was plugged and abandoned as a dry hole. 
 
Stratic is currently marketing its interests in Turkey with a view to concluding 
a sale by mid 2010. 
 
In the Netherlands, Stratic has signed a Letter of Intent to farm-out its F Quad 
acreage. On completion of the farm-out agreement and subject to Ministry 
approval Stratic will be fully carried through the next phase of exploration 
activity, including the possibility of drilling an exploration well.  Stratic 
continues to examine alternative development options for its P8 Horizon West 
development before seeking to bring in one or more farm-in partners. 
 
Financial 
 
Stratic ended 2009 with net debt of $106.5 million, comprising cash (excluding 
restricted cash) of approximately $6 million, bank debt of $48 million and 
subordinated convertible loans of $64.5 million. 
 
Under recently agreed amendments to the bank facility, an additional short-term 
line of credit of approximately $10 million is now available for general 
corporate purposes, providing increased flexibility to fund the business 
near-term. This is repayable, together with scheduled repayments under the 
facility of approximately $25 million which have been deferred from the end of 
2009, from the proceeds of sale of the Company's Italian business amounting to 
an estimated $45 million, expected to complete around the end of the first 
quarter, 2010. 
 
In 2010, based on a Brent oil price averaging $75 per barrel, Stratic expects to 
generate approximately $35 million of production revenue after royalties and 
field operating costs. This includes revenues from our Turkish business up to 
the mid-year, following which the business is assumed to have been sold. Planned 
development expenditure in 2010 is forecast to be approximately $20 million, 
primarily on West Don including the third production well under consideration. 
No significant development capital expenditure is expected on the Crawford field 
in 2010, pending project sanction targeted later in the year, at which point 
additional finance will be required to be in place. Subject to banks' approval, 
the existing bank loan facility is likely to be available to finance a portion 
of Stratic's share of development expenditure on the field. 
 
Committed exploration and appraisal expenditure in the UK and Syria for 2010 
currently stands at about $10 million, with a further $10 million earmarked for 
exploration in new areas, subject to available cash flow in the second half of 
the year. During 2010, based on the current facility projection, Stratic expects 
to make loan repayments to its banks totaling approximately $35.5 million, 
substantially reducing the projected loan to an outstanding balance at year end 
of approximately $12.5 million. 
 
Strategy and Outlook 
 
Stratic's strategy over the last few years has been to build a production-based 
business in the North Sea and Italy, by accessing existing discoveries and 
advancing those discoveries through further appraisal, development and 
ultimately into production. During this period the company built an attractive 
portfolio of appraisal and development properties, including West Don, Crawford, 
Bowmore, Cairngorm, Breagh and Horizon West in the North Sea, and the Longanesi 
gas field in Italy. By its nature, such a strategy is very capital intensive, 
relying on ready access to both equity and debt markets, and proved to be 
unsustainable during the world financial crisis we have experienced over the 
last two years. 
 
In response to these market conditions, we determined to sell two of our key 
undeveloped assets - Breagh and Longanesi - to reduce associated unfunded future 
development costs, and our existing debt levels arising from the development of 
West Don, consequently lowering our production outlook in the future and the 
scale of our activities generally. In addition, it has subsequently become clear 
that the availability of debt finance for small North Sea development projects 
will be severely limited for the foreseeable future. As a consequence, we do not 
believe that trying to grow the company by this route remains viable and we are 
therefore adopting a new strategy to reflect the changed circumstances. 
 
The company's revised North Sea strategy is as follows: 
 
·     generate maximum near term value from the asset base by continuing to 
invest in, and press for performance improvements on, West Don, including the 
drilling of a third production well in 2010 
 
·     work to optimise the Crawford development plan and related financing 
arrangements with a target of submission for approval by mid 2010 
 
·     complete existing exploration and appraisal activity (principally in the 
Bowmore area, and Cairngorm), but not seek new opportunities beyond the existing 
licence areas. 
 
In addition to this revised North Sea strategy, the Company will also pursue a 
new growth strategy in selected lower cost overseas areas by: 
 
·     seeking material exploration and appraisal opportunities in the Middle 
East (and possibly North Africa) building on the established office, operating 
capability and business network available to us in Syria 
 
·     improving the frequency of drilling activity to increase interest in the 
Company - targeting 4 or 5 wells per year, starting mid year 2010 
 
·     exploring predominately onshore plays with promoted activity to reduce 
costs 
 
·     funding exploration from North Sea cash flow, against a more conservative 
balance sheet following restructuring 
 
·     focusing our efforts to increase the critical mass and reach of Stratic's 
business through local partnerships and alliances, or in combination with other 
companies. 
 
 
Kevin Watts, Chief Executive, commented: "I am pleased to report that we have 
made significant headway in both refocusing our strategy to reflect the current 
economic and operating environment and putting in place a sound financial 
platform on which to execute it, a process we started more than a year ago and 
which is ultimately expected to raise well in excess of $100 million from asset 
sales. Operationally, we remain optimistic about future reservoir performance at 
West Don and we look forward to further efficiencies once offshore loading is 
discontinued. We are also working towards sanctioning and financing the Crawford 
development later in 2010, and our forward  drilling program in the North Sea is 
expected to include a further well in the Bowmore area, together with a third 
production well on West Don. Alongside our North Sea asset base we will be 
seeking to build up a portfolio of exploration and appraisal opportunities in 
lower cost areas. This is likely to take some time to establish fully, but we 
are clear about our immediate objective of accessing at least a couple of 
opportunities that can be drilled in the second half of the year." 
 
Conference Call Dial in Details 
 
Stratic's management will host a conference call today, Tuesday February 9, at 
12.00 noon Eastern Time (5.00 p.m. London Time) during which a question and 
answer session on the company's operations, business and strategy will be held. 
To participate in the conference call, please dial (647) 427-7450 or (888) 
231-8191 in North America. UK residents should call on 0800 051-7107. To listen 
to the webcast enter 
http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2953720 
 
A replay of the conference call may be accessed for one week until February 16, 
2010 by dialing (001) 416 849-0833 or 1-800 642-1687 and entering pass code 
53850009. 
 
Notes to Editors: 
 
About Stratic: Stratic Energy Corporation is a Canadian-incorporated 
international oil and gas business operating principally in the North Sea. The 
Company currently has oil production from the West Don field in the UK North Sea 
and gas production from the South Akcakoca licences in the Black Sea, offshore 
Turkey. The company has further discoveries in the North Sea that are candidates 
for future development, most notably the Crawford field, which is expected to 
receive development consent in 2010. The Company has recently undertaken a major 
restructuring programme to reduce debt levels by selling its interests in two 
gas development projects, Breagh in the North Sea and Longanesi in Italy, with 
expected proceeds in excess of $100 million. Once this restructuring programme 
is complete, expected in mid 2010, the Company intends to concentrate on its 
existing development assets in the North Sea but deploy its higher risk 
exploration capital in lower cost areas in the Middle East and North Africa. 
Stratic's shares are listed on the TSX Venture Exchange in Toronto and on AIM, 
London and its principal operating office is in London, UK. 
 
 
TSX-V notification 
 
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 contact: 
 
Kevin Watts, President and Chief Executive Officer 
     +44 20 7766 7900 
John van der Welle, Chief Financial Officer 
            +44 20 7766 7900 
Mark Bilsland, Chief Operating Officer 
             +44 20 7766 7900 
 
Patrick d'Ancona, M: Communications 
           +44 20 7920 2347 
 
Canadian Investor Relations 
Roger Fullerton 
                            +1 952 929 7243 
Email: roger.fullerton@straticenergy.com 
 
Website: www.straticenergy.com 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
 MSCUWVARRUAURUR 
 

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