Strategic American Oil Corporation is an up and coming young exploration and production company that made a major splash in the financial sector on August 6 when it announced that it has leased additional acreage in the Illinois Basin, which has the potential to recover approximately 4 billion barrels of oil according to the Illinois State Geographical Survey (ISGS).
Strategic has made their mark in Illinois with their mass amount of coverage. Currently, Strategic has leased 2,757.9 acres which cover several prospects in Jefferson County. In addition to this, the company leased 213.84 acres in Hamilton County which has been â€œfarmed outâ€ to Admiral Exploration Company with Strategic retaining a 5% ORRI (Overriding Royalty Interest) and a 10% back-in after payout.
ISGS has stated that Strategicâ€™s Oakdale, Northeast, DST, and Waterflood Prospect (Jefferson County) are on trend with and offset fields that have produced 764,600 to 3,570,500 barrels of oil from depths of 3,000 to 4,000 feet.
Jim Thomas, who serves as the Company Chief Geologist with over 35 years in the field, has identified through the research of the ISGS records that the Waterflood Prospect originally produced over 1.5 million barrels of oil and these records also indicate that waterflood recovery methods produce an approximate 1:1 recovery rate.
When asked what this potential means to Strategic, Company President Randy Reneau said, â€œBy utilizing the ISGS database to review current and historic oil fields with similar geologic characteristics to the Companyâ€™s current leases, Strategic is able to compare the potential of our conventional as well as secondary recovery (waterflood) prospects in the Basin. These shallow oil trends offer the possibility of near term production and significant cash flow.â€
Strategic American Oil Corporation has a strong plan in place for the future of the company which relies upon an internationally recognized team of geologists, engineers and executives with extensive oil and gas exploration and production experience. With operations that branch out into Texas, Louisiana, and Illinois, Strategic has strategized to become a major player on Wall Street.