This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
CORPUS CHRISTI, Texas, June 2, 2010 (GLOBE NEWSWIRE) -- Strategic American Oil Corporation (OTCBB:SGCA) (the "Company") is pleased to announce it has completed leasing the DST prospect in the Illinois Basin. The project covers approximately 1,000 acres and according to the Illinois State Geological Survey (ISGS) is on trend with and offsets fields that have produced from 764,600 to 3,570,500 barrels of oil from depths of 3,000 to 4,000 feet. The Company will now work to secure additional working interest partners in an effort to drill an offset well on the DST acreage. This prospect was identified from geologic and historic well information provided by the ISGS
The DST prospect is a part of broader effort by the Company to create a package of drilling prospects ranging from lower risk offsets to higher risk step-out wells. This portfolio of prospects will provide SGCA and its working interest partners a relatively low risk/high reward portfolio of drilling locations in the heart of the Illinois Basin where, according to the ISGS, recent calculations suggest that remaining mobile resources in the Illinois Basin may be as much as 4.1 billion barrels.
The Illinois Basin
Strategic American Oil Corporation has a strong interest in developing oil from primary and secondary recovery in the Illinois Basin for numerous reasons, including:
Low lease costs at $10-25/acre
Low royalty rate at 12.5 percent
Shallow target zones of 2,000 – 4,000 feet
According to ISGS, oil and gas have been commercially produced in Illinois for over 100 years. Existing commercial production comes from more than 52 named pay horizons. Recent calculations suggest that remaining mobile resources in the Illinois Basin may be as much as 4.1 billion barrels. Thus, large quantities of oil, potentially recoverable using current technology, remain in Illinois oil fields despite a century of development. To date, Strategic American Oil has leased more than 3,500 acres covering numerous prospects in Illinois.