SERVICE AGREEMENT

THIS AGREEMENT    dated for reference the 1st day of January, 2006

BETWEEN:          Charlie Perity
                           (the "Service Provider")

AND:                       Strata Oil & Gas Inc.
                           #408- 918 16th Ave NW
                           Calgary, Alberta
                           T2M O3K

                           (the "Company")
WHEREAS:

A.  The  Company  is a  Canadian  corporation  in the  business  of oil  and gas
exploration;  and B. The Company desires to develop oil and gas properties;  and
C. The Company  desires to retain the  services  of the Service  Provider in the
capacity pursuant to the terms
              hereof;  and
D.            The Service  Provider  is an  individual  possessing  professional
              qualifications in the oil and gas exploration industry; and
E.            The  Service  Provider  is willing  to serve as a Director  of the
              Company

THIS  AGREEMENT  WITNESSES  THAT in  consideration  of the  premises  and mutual
covenants herein contained,  and for other good and valuable consideration,  the
receipt and  sufficiency  of which is  acknowledged  by each party,  the parties
agree as follows

1.  ENGAGEMENT:  The Company herby  engages the Service  Provider to provide the
services referred to in Section 3 hereof for the  consideration  hereinafter set
forth and the Service  Provider  hereby accepts such  engagement by the Company,
all and subject to the terms and conditions of this Agreement.

2. TERM: The Service  Provider's  engagement  shall commence January 1, 2006 and
continue  for as long as the  Service  Provider  is a director  of the  Company.
Nothing  herein shall  prevent the Service  Provider from offering or performing
services to other businesses.

3. DUTIES: The Service Provider will utilize his expertise to serve on the Board
of Directors of the Company.

4. COMPENSATION: In consideration for the services of the Service Provider to be
provided  to the  Company  under this  agreement,  the  Company  will pay to the
Service  Provider  and/or his agent,  an amount of CDN $ 500 per month.  Payment
will be made to the Service Provider in advance on a quarterly basis.

5. CONFIDENTIALITY AND NON-DISCLOSURE:  The Service Provider agrees on behalf of
himself that any  information  provided to him by the Company of a  confidential
nature will not be revealed or disclosed to any person or entity,  except in the
performance of this Agreement or as directed by legal or regulatory authority.

6. ENTIRE  AGREEMENT:  This Agreement,  hereto  constitutes the entire agreement
between  the  parties  hereto and there are no  representations  or  warranties,
express  or  implied,  statutory  or  otherwise  other  then  set  forth in this
Agreement  and  there  are no  agreement  collateral  hereto  other  than as are
expressly set forth or referred to herein.  This Agreement  cannot be amended or
supplemented except by a written agreement executed by both parties hereto.

7. COUNTERPARTS:  This Agreement may be executed in counterparts  together shall
constitute one and the same instrument.

IN WITNESS  WHEREOF the Parties have duly executed this Agreement as of the date
set out above of this Agreement.

                                                    Strata Oil & Gas Inc.
Per Charlie Perity                                  Per Manny Dhinsa, President
Authorized Signatory                                Authorized Signatory

/s/ Charlie Perity                                  /s/ Manny Dhinsa
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