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Strategic American Oil Corp. (SGCA) Reserves Report Confirms Company’s Strategy

The stated strategy of Strategic American Oil, a growth stage oil and gas exploration and production company, is to avoid risking money on new exploration when the current and anticipated price of oil and gas supports the much safer approach of going after known reserves. Another important part of the company’s strategy is to avoid the risks and costs of foreign sites, by going after the large number of domestic oil and gas opportunities where the infrastructure and ease of access provide additional long term benefits. In the case of Strategic, the company seeks accretive acquisitions of production, reserves, or other companies with growth potential. Their current focus is on proven reserves in Texas, Louisiana, and Illinois, where the company has successfully acquired and developed key projects.

The soundness of Strategic’s approach was recently demonstrated when it received a fiscal year end reserve report for the company’s productive interests in Texas and Louisiana. The report was put together by Ralph E. Davis Associates, a long-established independent Houston-based petroleum engineering consulting firm. The report estimates net proved reserves of 1.2 million barrels of oil, and 12.5 billion cubic feet of natural gas, all of which translates into over $97 million undiscounted (nearly $59 million discounted at 10%).

In addition, the report was released just prior to Strategic’s acquisition of SPE Navigation I, LLC, a Texas based oil and gas exploration company. The acquisition included oil and gas working interests equal to one third of the working interests owned in four producing oil and gas fields in Galveston Bay near Houston. If the SPE interests are added in, reserve numbers increase to an estimated net proved reserves of 1.6 million barrels of oil and 16.6 billion cubic feet of natural gas. This translates into over $128 million undiscounted, or over $77 million discounted at 10%.

For additional information, visit StrategicAmericanOil.com

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