CORPUS CHRISTI, Texas, Sept. 22, 2010 (GLOBE NEWSWIRE) -- Strategic American Oil Corporation (OTCBB:SGCA) (the "Company) is focusing its efforts on growing and developing its portfolio of oil projects in Illinois. Highlighted by the Waterflood #1 (WF1) prospect, the Company has recently leased over 2,900 acres in the Illinois Basin. New projects are being identified and leasing programs are in effect to acquire these prospects.
Identifying and leasing in the Basin is a part of a broader effort by the Company to institute a drilling program with prospects of mixed risk profiles, ranging from waterflood opportunities, direct offsets, step-out wells, and pinnacle reef prospects. This portfolio of prospects will provide Strategic American Oil a relatively low-cost/high-reward portfolio of drilling locations in the heart of the oil-rich Illinois Basin. Updates will be given as key leasing and operational milestones occur.
The Illinois Basin, which the Illinois State Geological Survey (ISGS) estimates has over 4.1 billion barrels of oil remaining to be produced, is a key area for development by the Company due to numerous factors, including:
- Lease Costs at $25.00 – 30.00/acre
- Royalty Rate at 12.5 – 15%
- Shallow Target Zones 2,000 – 4,000 feet