Strategic American Oil Corp.’s objective is to find and acquire oil and gas projects of merit and develop those projects to their full potential. They have developed and implemented a multi-tier growth program. This includes developing salable drilling prospects in-house retaining a carried interest to casing point, and the drilling of offset wells retaining a majority of the working interest.
Their growth program also includes developing secondary recovery (waterflood) projects and increasing production by re-working existing producing or previously producing wells. “Waterflood” is an oil extraction method where water is pumped into an injection well displacing the reservoir formation and forcing the oil into a recovery well. This method is used to recover additional oil in place following primary production methods.
The Company also works to develop proven undeveloped zones (behind pipe) in existing wells, and to acquire currently producing oil and gas wells. In addition, they look to complete in-house 3D seismic projects and acquire 3D data where warranted and/or available.
Strategic American Oil Corporation has leased a 1,043 net acre (m/l) Frio Sand (gas) target in South Texas. They identified this through their acquired 303 sq. mile 3D seismic database. The Company’s exploration team believes the multiple Frio sands identified in the seismic profile could contain significant gas and condensate reserves and proposes to drill one to two wells to test the Frio zones.
Strategic American Oil Corporation announced in early April that the drilling contract for their Victoria Co., Texas “Koliba” Prospect was executed. The Company will retain a 16.33 percent carried working interest to casing point, 25 percent working interest after casing point. This puts them in a low risk/high reward scenario.
The combined leased acreage (Koliba-Linville) consists of 143 acres. It covers an anticipated anticlinal structure (target) with offsetting production. Strategic American Oil Corporation plans to drill a direct offset to the Murphy Baxter, Koliba #1 well which produced from the 5,880 feet (target) zone.
On May 4, 2010, Strategic American Oil Corporation reported that they have made progress to further their goal of increasing production through various means. This is to build their revenues and enhance shareholder value while the Company prepares for upcoming drilling operations. They have leased, reworked, and purchased oil and gas projects at various stages of development.
The company has executed the drilling contract for the Koliba lease and booked the drill rig for May 15, 2010. They also acquired the final 10 percent working interest in the two Barge Canal producing wells. In addition, the Company leased and reworked the Dixon #1 well to the point of production and is currently preparing to rework the Dixon #2. They identified and began leasing a second waterflood prospect in the Illinois Basin as well.
President and CEO Jeremy Driver stated, “We have had a great year to date at Strategic American Oil, where we have seen developments on all fronts and we have only just begun. We are ready to begin drilling the Koliba (our first in-house generated prospect), we have purchased current production at the Barge Canal (at great value to the Company) and we have reworked the first Dixon well to the point of production.”