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Strategic American Oil Corp. (SGCA) Recent Acquisition Positions Company for Substantial Growth

Strategic American Oil Corp. recently announced that it entered an agreement to acquire SPE Navigation I, LLC (“SPE”), which owns certain oil and gas working interests equal to one third the working interests owned by Strategic American Oil in four producing oil and gas fields located in Galveston Bay, Texas, in addition to one million shares of Hyperdynamics Corp. (NYSE: HDY).

SPE was owned by various members of the CEO’s family who founded and developed Hyperdynamics Corp., which saw its price per share rise from $0.22 (April 2009) to $7.78 (January 2011) in less than two years. In exchange for SPE and its assets, Strategic American Oil agreed to issue an aggregate of 95 million restricted common shares, effectively granting a major stake in the company to these individuals.

In addition to holding a great deal of valuable cash-producing assets, SPE also has a $10 million dollar working capital bank line, of which less than $1 million has been drawn. Outside of this bank line, the company had no other debt. To date, owners have provided more than 70% of the company’s capital for acquisitions and are committed to long term shareholder value.

Upon completing the acquisition of SPE, Jeremy G. Driver, Strategic American Oil CEO, stated, “With the consummation of this transaction, both our cash flow and balance sheet are greatly improved. This puts us in an excellent position for substantial growth. We have multiple opportunities that can now be pursued, allowing us the opportunity to increase production and further enhance shareholder value.”

For the current half of 2011, Strategic American Oil is primarily focused on increasing Galveston Bay production through well workovers, recompletions, and infrastructure improvements. The acquisitions completed this year have improved the company’s financial position considerably. Strategic American Oil’s aggressive growth strategy going forward includes further acquisitions, increased production from existing fields, new waterflood projects, and a more extensive drilling program.

When the company announced its third quarter 2011 financial results, which included enormous gains in revenues and production volumes, Mr. Driver stated, “My family and I have made significant investments into Strategic American Oil with a strong belief in the opportunity for continued growth. We are committed to helping the company achieve its objectives and deliver stellar returns for all shareholders.”

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