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Strategic American Oil Corp. (SGCA) Continues to Improve Financials

When Strategic American Oil announced in November that the “going concern” note has been officially removed from its audit opinion, contained in its recently filed Form 10-K for the year ended July 31, 2011, it was the latest confirmation of the company’s growing financial position. The annual filing confirmed that Strategic increased revenues, cash flow, assets, and cash reserves in 2011 compared to 2010. The report also showed quarter over quarter improvement.

Q4 revenues were $1.92 million, versus $1.49 million for the previous combined three quarters. In addition, Q4 operational income passed into positive territory, compared to a loss of $8.8 million in the three previous quarters combined. And the company’s net, which was a negative $9.95 million for the previous three quarters combined, closed in at only a negative $340,000.

Strategic’s President and CEO, Jeremy Driver, emphasized the importance of the results: “For the first time since the formation of the company almost 6 years ago, the going concern opinion has been lifted by our independent auditors, reflecting the progress we have made in executing our strategy. The annual 10-K just filed should indicate to any discerning investor the vast improvements both operationally and financially to the company. Strategic American Oil will continue to increase production, revenues, cash flow, assets, and income. We fully expect our first quarter results will continue this positive trend.”

Strategic American Oil is a domestically-oriented growth stage oil and natural gas exploration and production company with operations in Texas, Louisiana, and Illinois. Their team of geologists, engineers, and executives leverage 3D seismic data and other proven exploration and production technologies to locate and produce oil and gas in new and underexplored areas. The company seeks accretive acquisitions of production, reserves, or other companies that will provide significant growth potential.

For additional information, visit StrategicAmericanOil.com

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