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Strata Oil & Gas Announces 2-for-1 forward stock split, Oil Sands project update
May 12, 2006

Strata Oil and Gas is pleased to announce that its Board of Directors has approved a two-for-one forward stock split of its common stock to shareholders of record at the close of business on May 10th, 2006. Trading will begin on a split-adjusted basis on May 12th, 2006.

“This forward stock split is intended to enhance trading liquidity and broaden share ownership," said Manny Dhinsa, president of the company.

Strata's Peace River oil sands project is located directly to the southwest of Blackrock's Seal project. Blackrock was just purchased by Shell Canada in a friendly $2.4 billion cash offer.

Production in the Peace River oil sands area, which was once thought to require expensive thermal operations, has now been shown to be viable using cold production technology (CHOPS). Strata’s scientific team has analyzed data from 21 existing wells that have been drilled on Strata’s leases and an additional 165 wells in the area surrounding them.

The company has announced that it has engaged a Calgary-based petroleum exploration firm to assist in the planning, permitting and execution of a core hole drilling program on its 100%-owned Peace River Oil Sands project. The company’s scientific team has recommended initiation of aggressive exploration on its wholly-owned 26,000 acre oil sands package. The Peace River oil sands region of Alberta is estimated to contain more than 188 billion barrels of oil [Alberta Department of Energy, Cold Heavy Oil Production With Sand In The Canadian Heavy Oil Industry, Dr. Maurice Dusseault, March 2002].

"We believe the upside on our Peace River leases is substantial. Strata is uniquely positioned to provide exceptional shareholder returns in a rising oil market, and to provide greater exposure to petroleum prices by maximizing our in-place resource per common share" says Mr. Dhinsa. Strata Oil & Gas is a junior petroleum exploration company, with its head office located in Calgary, Alberta.

Strata Oil & Gas is a trademark of Strata Oil & Gas Inc. This announcement contains forward-looking statements which involve risks and uncertainties that include, among others, limited operating history, risks related to petroleum exploration, limited access to operating capital, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. More information is included in Strata's filings with the Securities and Exchange Commission which may be accessed through the SEC's web site at http://www.sec.gov.

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