Strat Petroleum Completes First Stage Financing & Begins Processing of Oil Sludge.

TORONTO -- Strat Petroleum, Ltd. (OTC:SPRL), an emerging exploration and development company focusing on oil and gas opportunities in the Russian Federation, today announced that it has completed a letter of intent to form a joint venture with a private European entity to begin processing of the oil sludge reservoirs acquired by its subsidiary Strat Nafta Ufa (SNU) in the Republic of Bashkorstan.

The agreements, currently being completed, will provide the first stage of financing required to establish between two and three units to process significant quantities of sludge on a daily basis. Although all agreements have yet to be completed, financing for the first unit has already been provided and mutual commitments have begun; the first shipment of approximately 150 barrels of crude oil to be provided under contract to a local customer at a profitable price will be delivered on October 27th. The SNU joint venture has signed an agreement with this customer to supply at least 300 bpd and has lined up additional customers for future production in excess of the 300 bpd.

During the past few months Strat has been performing extensive due diligence in the form of evaluation and testing of various solutions available to process oil sludge. In our attempts to arrive at a solution that would not only be effective but very efficient and economical, Strat had to review several available solutions. Strat believes it has arrived at a very good and economical solution that includes mechanical and ground breaking chemical formulae to generate maximum profit and highest shareholder value.

Strat's primary objective is to increase production at the first site within a few weeks to at least 300 bpd with production increasing to in excess of 1,000 bpd early in the New Year. At the same time Strat is evaluating new sites to establish processing operations and will be ordering additional equipment to begin operations early in the New Year at these sites.

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.).

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.