Strategic American Oil Corporation Completes Placement Of Working Interest In South Texas Koliba #3 Prospect
CORPUS CHRISTI, Texas, Nov. 18, 2010 (GLOBE NEWSWIRE) -- Strategic American Oil Corporation (OTCBB:SGCA) (the "Company") is pleased to announce it has completed the placement of all available working interest in the Company's Victoria Co., Texas "Koliba #3" prospect and plans to commence drilling operations as soon as possible, possibly before year end. The Company will retain a 12.5% working interest. The leased acreage (Koliba) gives the Company a total of 79 acres covering a known anticlinal structure (target) with offsetting production.
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. The Company has identified 3 Frio Sand target zones at 5880', 5350', and 4930' under the Koliba lease. The Company plans to drill a direct offset to the Murphy Baxter, Koliba #1 well which produced 11,581 BO from the 5880' (target) zone.
The Company completed drilling the Koliba #2 prospect in Victoria County, Texas earlier this year to 6,880 feet to evaluate three Frio sand objectives and found the well to be slightly downdip structurally but still productive. Rather than completing the #2 well, the Company decided to drill the #3 well and get updip to the #1 well, therefore making better use of investment capital.Company V.P. of Operations, Steven Carter, who has over 25 years 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. Company President and CEO, Jeremy Driver, stated, "Progressing the Koliba #3 towards the drilling stage is an exciting step for Strategic American Oil. After reviewing the information from the Koliba #2, we see the Koliba #3 as an attractive prospect with greater potential than the initial drilling location."
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