Strategic American Oil Corporation Commences Drilling Operations On South Texas Koliba Prospect
CORPUS CHRISTI, Texas, June 29, 2010 (GLOBE NEWSWIRE) -- Strategic American Oil Corporation (OTCBB:SGCA) (the "Company") is pleased to announce that drilling operations have commenced on its Koliba prospect in Victoria County, Texas. The Company has retained a 16.33% carried working interest to casing point, 25% working interest after casing point. The combined leased acreage (Koliba-Linville) consists of 143 acres covering an anticipated anticlinal structure (target) offsetting production. The new well is a direct offset to the Murphy Baxter, Koliba #1 well which previously produced from the 5,880 feet (target) zone.
The Koliba prospect lies in the North McFaddin Field, which, according to Texas Railroad Commission maps and records, hosts 87 productive oil and gas zones. There are numerous key points that make the Koliba prospect particularly attractive to SGCA, including:
Multi-Pay ZonesThe Company has identified three potential target zones at 5,880 feet, 5,350 feet and 4,930 feet under the Koliba lease. Historic Production Texas Railroad Commission records indicate seven wells from these three target zones produced 390,426 barrels of oil and 2,472,481 MCF (thousand cubic feet) of gas. Strong Well Control The Koliba prospect was evaluated by means of surrounding well control, adding confidence and lowering risk to the geologic interpretation. A minimum of 50 surrounding well bores and their associated well logs were used in developing the geologic interpretation. The prospect interpretation is both a structural and stratigraphic trap that includes a four-way closure. Strategic American Oil Vice President of Operations Steven Carter, who has over 25 years of engineering experience in oil and gas exploration, production operations, reservoir management, and drilling, will operate the well through Carter E&P, LLC, a licensed and bonded operator in the State of Texas. Strategic American Oil President and CEO Jeremy Driver said, "The start of drilling of the Koliba prospect is a great milestone for the Company. The Koliba is our first fully in-house developed prospect, which demonstrates we can execute our business plan of finding, acquiring and developing what we believe are low risk/high reward development projects utilizing a carried-interest model. Our goal is to increase production, cash-flow, and reserves. When we successfully execute this strategy and strengthen the fundamentals of the Company, the stock valuation will follow."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV