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  • Strategic American Oil Corp. (SGCA) Executes LOI to Increase Interest in Galveston Bay Production 0 comments
    Sep 20, 2011 3:37 PM | about stocks: HDY

    Strategic American Oil Corp. recently announced that it has signed a letter of intent ("LOI") to acquire SPE Navigation I, LLC ("SPE"). In exchange for SPE, Strategic American Oil has agreed to issue to the shareholders of the company an aggregate of 95 million restricted common shares upon the completion of the acquisition.

    The material assets of SPE include certain oil and gas working interest equal to one third the working interest of the company in and to four producing oil and gas fields located in Galveston Bay, Texas, as well as one million shares of Hyperdynamics Corporation (NYSE:HDY). SPE is currently managed by Michael E. Watts, the father-in-law of Jeremy G. Driver, the CEO of Strategic American Oil, and the owners of SPE are the children of Mr. Watts which include the wife of Mr. Driver.

    Jeremy G. Driver, CEO, commented, "This acquisition strengthens the Company's balance sheet tremendously and provides the Company with a great deal of valuable cash-producing assets to help facilitate our growth. This transaction should convey to every shareholder and potential investor that my family and I are entirely committed to seeing the value of Strategic American Oil move higher."

    Texas produces more than one billion barrels of oil/gas each year. Recognizing the state’s impressive history of oil/gas production and myriad of opportunities for further exploration and development, Strategic American Oil is focused on leveraging 3D seismic data and other proven exploration and production technologies to locate and produce oil and natural gas in new and underexplored areas.

    The proposed acquisition has been approved by Strategic American Oil’s independent Board members. Although it is still subject to the negotiation and execution of a definitive purchase agreement, as well as customary closing conditions, adjustments and an acceptable fairness opinion to be rendered by an independent expert, the company anticipates that the proposed acquisition may close before the end of next month.

    Please see disclaimer on the QualityStocks website:

    Themes: oil, gas, spe navigation, hyperdynamics Stocks: HDY
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