Strategic American Oil Corporation Identifies New Offset Drilling Target In Illinois Basin
CORPUS CHRISTI, Texas, Oct. 27, 2010 (GLOBE NEWSWIRE) -- Strategic American Oil Corporation (OTCBB:SGCA) is pleased to announce that it has identified a new offset oil drilling target (the D1 Offset Prospect) in the Illinois Basin. The prospect target is located at depths above 3,500 feet. The Company plans to lease approximately 400 acres over the identified prospect and drill to evaluate the prospective subsurface geology. This prospect was identified in the Illinois Basin through the research of records from the Illinois State Geological Survey (ISGS).
The D1 Offset Prospect was identified and developed from the existence of an isolated well which had initially produced 40 BOPD, according to records shown in the ISGS, and zero water. This well is in the immediate vicinity of an oil field which produced over 14 million barrels of oil, according to records shown in the ISGS, from seven pay zones. The D1 Offset well needs to be offset and field development carried to its full extent. All pay zones are above 3,500 feet.
Company President and CEO, Jeremy Driver stated, "This offset opportunity is a prime example of the benefits we receive from our team's experience in the Illinois Basin. We understand that the oil business is a numbers game, and so we are researching our historic records in a timely fashion to identify as many projects as possible. We are also discussing operating partnerships with numerous groups in an effort to expedite drilling operations. We've seen success in finding a partner for development in our Kenedy lease and are now focusing on our Illinois Basin projects. The D1 Offset adds to that list, which we are now starting our leasing program on."The Strategic American Oil team in Illinois, led by Chief Geologist, Jim Thomas, who has over 35 years experience working in the Illinois Basin, is continuing to make progress in finding and leasing new attractive targets, furthering Strategic American Oil's business model of developing prospects in-house to build the Company's oil reserves and increase production. The Company will continue to review and evaluate data from the Illinois State Geological Survey to identify new drilling prospects with the goal of making new oil field discoveries.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts