CORPUS CHRISTI, Texas, Feb. 17, 2010 (GLOBE NEWSWIRE) -- Strategic American Oil Corporation (OTCBB:SGCA) (the "Company") is pleased to announce it has leased a 1,043 net acre (m/l) Frio Sand (gas) target in South Texas identified through its acquired 303 sq. mile 3D seismic database. The Company's exploration team believes the multiple Frio sands identified in the seismic profile could contain significant gas and condensate reserves and proposes to drill one to two wells to test the Frio zones.
Bob Bennett, the Company's contract seismic expert who has more than 20 economic oil and gas discoveries to his name, said of the prospect, "With more than 2 decades of experience exploring for oil and gas in South Texas with 3D seismic, I have never had the opportunity to discover or participate in a Frio structure such as this. These structures are usually cherry-picked by the major oil companies as drilling locations of choice. I believe this prospect has the potential to be a substantial new field discovery along this highly active trend."
Company President and CEO, Jeremy Driver, stated, "This leasing effort is a major development in the Company's ongoing exploration and development program. We have been working on this project for some time aided by the 3D seismic survey purchased last year. We believe this structure, in the prolific South Texas Frio Sand trend, has the potential to be a significant gas and condensate producer. Successfully developing prospects of this magnitude increases our ability to grow our revenue and core reserves. The Company will continue to review and evaluate its four additional 3D seismic databases with the goal of developing additional prospects."
The Frio formation, a sandstone interval, is one of the most prolific producers in South Texas. The Company's prospect lies directly on trend with many other major gas/condensate producing fields—according to Texas Railroad Commission records, many of them accumulating production exceeding 200BCF (200 million MCF) and 300MBO. In general, these fields possess numerous faults creating fractured "pools" of gas and oil. A desirable general characteristic of Frio zones is the relatively higher permeability and porosity leading to higher flow rates. Additionally, with the multiple zones to be encountered the Company expects to achieve these higher flow rates and significant oil and gas reserves.
3D seismic is a key tool in Strategic American Oil's exploration plans for discovering new oil and gas reserves along the gulf coast. 3D seismic surveys allow the company to better define prospective oil/gas structures and pinpoint drilling locations thus increasing chances for successful wells. 3D seismic has become an invaluable tool for developing drilling prospects and has become the prospecting tool of choice in today's oil and gas exploration industry. The technique is utilized by major oil and gas companies throughout the world.
About Strategic American Oil Corporation
Strategic American Oil Corporation (OTCBB:SGCA) is an exploration and development company with operations in Texas, Louisiana, and Illinois. The Company draws on an internationally recognized team of geologists, engineers and executives with extensive oil and gas exploration and production experience. The Company's objective is to find and acquire oil and gas projects of merit and develop those projects to their full potential.
The Strategic American Oil Corporation logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=6891
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Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of mineral resources, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labour disputes and other risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release.