Strategic American Oil Corporation Enters Into Drilling Contract For Koliba #3 Well
CORPUS CHRISTI, Texas, Dec. 14, 2010 (GLOBE NEWSWIRE) -- Strategic American Oil Corporation (OTCBB:SGCA) (the "Company") is pleased to announce that the drilling contract has been executed and drilling preparations have begun for the Koliba No. 3 well, with expectations to commence drilling this month, depending on favorable weather conditions and rig availability. The Company has retained a 12.5% working interest for the well. The combined leased acreage (Koliba) consists of 79 acres covering an anticipated anticlinal structure (target) with offsetting production. The Koliba #3 is a direct offset to the Murphy Baxter, Koliba #1 well which 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. The Company has identified 3 Frio Sand target zones at 5880', 5350', and 4930' under the Koliba leases. The Company plans to drill a direct offset to the Murphy Baxter, Koliba #1 well which produced 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, thereby 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, "This is an exciting time for Strategic American Oil as we currently have two projects in South Texas, the Koliba and Kenedy, with drilling operations underway. Our expectations are that initial drilling results will be finalized for each of these projects in early 2011. We look forward to seeing the results of these operations."
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 + 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