CORPUS CHRISTI, Texas, Dec. 23, 2010 (GLOBE NEWSWIRE) -- Strategic American Oil Corporation (OTCBB:SGCA) looks forward to 2011 with great anticipation as numerous projects are now moving forward towards development.
The Kenedy prospect was discovered through the interpretation of our 3D seismic data. We have partnered with Chinn Exploration, who is drilling and will operate the well. The target depth of the well is approximately 14,000 feet. We should have news on the success of this well in the first two weeks of January 2011.
The Koliba #3 prospect is an offset well to the Koliba #1 which was operating in the 1980s before it was prematurely shut down due to the low price of oil. The targeted zone is at a depth of 5,800 feet. The Company has commenced drilling and, like the Kenedy, looks forward to seeing results within the first two weeks of January 2011.
In the Illinois Basin, SGCA has been in negotiations with numerous oil and gas companies interested in a joint venture to develop our first waterflood prospect, which we believe has the potential for more than a million barrels of oil. The Company expects to have a favorable deal finalized in the coming weeks with operations to commence shortly thereafter. Additionally, we have identified and are leasing a second and third waterflood prospects, two pinnacle reef prospects, and several additional offset drilling targets.
Strategic American Oil is also in late-stage negotiations now on a very attractive acquisition opportunity that could bring significant value to the Company, both through assets and cash-flow.We will continue to drill, we will continue to explore, and we will continue to seek acquisitions. We will continue to build Strategic American Oil into a strong and self-sustaining company with profits and cash flow. We will continue to move toward a major stock exchange listing in the very near future.