Strategic American Oil Corporation Leases Additional Acreage In Illinois Basin
HIGH VALUE TARGETS ON TREND WITH FIELDS THAT HAVE
PRODUCED SIGNIFICANT RESERVES
August 6, 2009; Corpus Christi, Texas; Strategic American Oil Corporation (OTCBB: SGCA; the “Company”) is pleased to announce it has leased additional acreage in the Illinois Basin. The Illinois State Geological Survey (ISGS) has estimated the Illinois Basin has the potential to recover approximately 4 billion barrels of oil. To date, the Company has leased 2757.9 acres covering several prospects in Jefferson County. The Company also leased an additional 213.84 acres in Hamilton County which has been “farmed out” to Admiral Exploration Company (Strategic retained a 5% ORRI and a 10% back-in after payout). Total acres leased to date, including farmed out leases, is approximately 2971.74 acres. These leases cover multiple zone targets, to 4000 feet, as well as a potential waterflood prospect.
The Company’s Oakdale Northeast, DST, and the Waterflood Prospect (Jefferson County) are on trend with and offset fields that, according to the ISGS, have produced 764,600 to 3,570,500 barrels of oil from depths of 3,000 to 4,000 feet. These prospects were identified from geologic and historic well information provided by the state of Illinois State Geological Survey.
Jim Thomas, Company Chief Geologist with over 35 years of experience in the Basin, has identified through the research of the ISGS records that the Waterflood Prospect, a historic oil field the Company is currently leasing (461 ac. Leased to date), originally produced over 1.5 million barrels of oil. ISGS records also indicate that waterflood recovery methods produce an approximate 1:1 recovery rate.
“By utilizing the ISGS database to review current and historic oil fields with similar geologic characteristics to the Company’s current leases, Strategic is able to compare the potential of our conventional as well as secondary recovery (waterflood) prospects in the Basin,” said Company President, Randy Reneau. “These shallow oil trends offer the possibility of near term production and significant cash flow.”
About Strategic American Oil Corporation
Strategic American Oil Corporation (OTCBB: SGCA) is an exploration and production company with operations in Texas, Louisiana, and Illinois. The company draws on an internationally recognized team of geologists, engineers, and executives with extensive oil and gas exploration and production experience. The Company’s objective is to find and acquire oil and gas projects of merit and develop those projects to their full potential.
For further information please contact:
Suite 2015, 600 Leopard Street
Corpus Christi, Texas, 78473
Phone: (800) 643-5815
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