Archive for the ‘Strategic American Oil Corp SGCA’ Category

Projects Prove Success of Strategic American Oil Corp. (SGCA) Strategy

Tuesday, February 7th, 2012

The success of an oil and gas exploration and development strategy is best seen in the projects it generates. Strategic American Oil’s objectives of using 3D seismic data and other technologies to identify and acquire the best domestic oil and gas opportunities has led to the following projects.

• TEXAS:

Galveston Bay Energy – Acquired in February of 2011, Galveston Bay Energy represents multiple high-value drilling targets, with 4 fields: Trinity Bay, Fisher’s Reef, Red Fish Reef, and North Point Bolivar. The company’s careful target valuation strategy paid off, with the quick re-completion and production of the Fisher’s Reef G2-3A well. In addition, the company has now successfully reworked and increased production from its State Tract 343 No. 18 well in the North Point Bolivar Field of Galveston Bay, significantly increasing revenues.

Welder/barge Canal – Strategic currently produces from two Frio Sand wells located on the Welder Lease. A gas lift system is utilized to produce the wells. Gas not used in the gas lift system is sold. The lease also contains one salt water disposal well.

Janssen 1-A – Strategic owns a 3% working interest in the Janssen A-1 Well. The Janssen produces around 250 mcfgpd from the Roeder Sand (Wilcox) at a depth of 10,300 feet. PDNP Pettus sand (oil) is behind pipe at 4000’, and a possible gas sand was indicated on logs at 3060’.

• ILLINOIS:

Markham City North Field – Strategic has leased over 560 acres in the Markham City North field, which has already produced 1.6 million barrels of oil. The targeted land position is in a previously producing oil field with the potential of hosting significant in-place reserves through waterflood recovery.

Jefferson County Waterflood Prospect – The company leased a land position in a previously producing oil field that could host significant in-place reserves which Strategic seeks to produce using the Enhanced Oil Recovery method (waterflood). The field previously produced an aggregate of 1.5 million barrels of oil during the 1940s and 1950s.

• LOUISIANA:

South Delhi / Big Creek Field – Strategic has current production in Louisiana. The company’s Louisiana Holt wells are situated in the Delhi South Field, adjacent to Denbury Resources.

The bottom line results from developing the above projects were announced in December, with the release of fiscal first quarter results. Revenue for the quarter was up 1,400% over the same quarter a year prior, to $1.56 million. Assets grew in the first quarter by $7.86 million, without adding debt. Cash used in operations was reduced from $250,000 in the previous quarter to $83,710. The reported net loss of $4.2 million included non-cash acquisition charges of $4.37 million. Production, as of Nov. 30, 2011, was estimated at 445 gross barrels of oil per day (350 net). Management anticipates increasing the company’s production beyond 1,000 barrels of oil equivalent per day (boepd) by the end of this year.

For additional information, visit www.StrategicAmericanOil.com

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Strategic American Oil Corp. (SGCA) Has Knack for Finding and Developing the Best Deals

Tuesday, January 24th, 2012

Strategic American, a Texas-based domestic oil and gas production and exploration company, has been successful in following a multi-tier growth low-risk strategy, bringing together the financing and technology to do the following:

• Acquire currently producing oil and gas wells
• Develop proven undeveloped zones (behind pipe) in existing wells.
• Develop salable drilling prospects in-house retaining a carried interest to casing point
• Drill offset wells retaining a majority of the working interest
• Develop secondary recovery (waterflood) projects
• Increase production by re-working existing producing or previously producing wells
• Complete in-house 3D seismic projects and acquire 3D data where warranted/available

Although Strategic has a number of unique qualities going for it, such as its strong financial position, the company’s real strength is the ability of their management team to be ahead of the curve in identifying domestic opportunities, and applying the financial and technical leverage to take full advantage of them. In short, they are able to spot and capitalize on some very smart deals.

But it’s not just about shrewd acquisitions or taking over new wells. Strategic’s success has largely depended upon turning around existing projects or wells. Much like taking over a company and increasing its value by improving operations, Strategic is adept at increasing output and efficiencies.

The most recent example of this is their work at North Point Bolivar Field in Galveston Bay, Texas, where the company recently announced a successful rework that has more than doubled well production. The result has been an addition to monthly revenue of roughly $30,000. And Strategic has many more wells awaiting recompletion or rework. This is in addition to anticipated new output from drilling activities or new acquisitions.

Strategic targets known resources and existing wells, as well as strong exploration opportunities, with existing operations in Texas, Louisiana, and Illinois. The company actively acquires production, reserves, or other companies that will provide significant growth potential, and the company’s financial position has steadily improved.

For additional information, visit www.StrategicAmericanOil.com

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The Continued Growth of Strategic American Oil Corp. (SGCA) Benefits Our Country

Wednesday, January 18th, 2012

The fact that revenue figures for Strategic American Oil Corp. continue to rise clearly helps the company’s image in the financial marketplace, but Strategic, and companies like it, also play a role in redefining America’s position in the energy marketplace. Strategic American Oil is a growth oriented domestic oil and gas production and exploration company, with operations in the continental U.S. Over and above the company’s individual performance, which has been strong, Strategic’s focus on domestic resources is important for its contribution to the country’s long term energy security and overall economic health.

In 2010, the U.S. consumed, on average, over 19 million barrels of petroleum products every day, with roughly half of it coming from outside countries. Such imports had less to do with a lack of domestic oil resources than with basic economics, specifically the fact that importing oil is often simply cheaper than producing it in the U.S. The numbers, of course, don’t take into consideration potential long term costs to the country, from a weakened balance of trade, to lost jobs, and inherent risks that come from depending upon outside sources for such a critical commodity.

But the numbers have been changing, as advanced detection, simulation, and production technologies have brought old wells back to life and have led to significant new domestic discoveries. As a result, and admittedly with help from a sluggish economy, net petroleum imports have actually been decreasing since 2005, and are now approaching levels not seen since the mid-1990s. With roughly a quarter of America’s trade deficit coming from oil imports, such improvements are noteworthy. Add to this the fact that it also represents more jobs, at many different levels of the economy, and the significance of rising domestic production becomes clear.

Strategic American Oil targets known resources and existing wells, as well as strong exploration opportunities, in Texas, Louisiana, and Illinois. The company actively acquires production, reserves, or other companies that are believed to provide significant growth potential, and the company’s financial position has steadily improved.

For additional information, visit www.StrategicAmericanOil.com

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Strategic American Oil Corp. (SGCA) Announces Increased Production at North Point Bolivar Field

Tuesday, January 10th, 2012

Strategic American Oil Corp. just announced that it has successfully reworked and increased production from its State Tract 343 No.18 well located in the North Point Bolivar Field in Galveston Bay, Texas.

Well production has more than doubled its original daily rate since the rework operation, resulting in additional monthly revenue of approximately $30,000 to the company. According to the press release, the company has many more wells awaiting recompletion or rework and is already executing its plan to bring on the latent production.

Management anticipates increasing the company’s production beyond 1,000 barrels of oil equivalent per day (boepd) by the end of this year. This is in addition to any potential production increases from drilling activities and new acquisitions, which alone could far surpass management’s goal.

“This is yet another example of the abundant low hanging fruit we have internally, apart from our larger drilling projects and acquisition opportunities. This operation, although relatively small, will pay for itself in a matter of weeks and is expected to produce for many years, underscoring our strategy of pursuing projects that have attractive returns on investment,” stated Jeremy G. Driver, President and Chief Executive Officer of Strategic American Oil Corporation.

Strategic American Oil told investors that it will continue to provide updates pertaining to its development programs as information becomes available.

For additional information, visit www.StrategicAmericanOil.com

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Strategic American Oil Corp. (SGCA) Positioned for Solid 2012 with Further Gains

Tuesday, December 27th, 2011

Last week, Strategic American Oil, a growth oriented oil and gas production and exploration company, announced its fiscal first quarter financial and operational results, reflecting significant gains in both areas.

• Revenue for the quarter was up 1,400% over the same quarter last year, to $1.56 million.
• Assets grew in the first quarter by $7.86 million, without adding any debt.
• Cash used in operations was reduced from $250,000 in the previous quarter to $83,710.
• The net loss of $4.2 million included non-cash acquisition charges of $4.37 million.
• Average reported production for the quarter was 290 gross barrels of oil per day (230 net).
• Current production, as of Nov. 30, 2011, was estimated at 445 gross barrels of oil per day (350 net).
• Strategic’s current leasehold position at approximately 20,099 net acres in Texas and Illinois.

In addition, the company reported a total cash balance of $4.74 million, which, together with their available bank line, the company considers more than sufficient to meet budgeted capital requirements for 2012, including plans for drilling, recompletion, and infrastructure improvements.

Strategic targets domestic oil and gas, focusing on known resources and existing wells, as well as strong exploration opportunities, in Texas, Louisiana, and Illinois. The company actively acquires production, reserves, or other companies that will provide significant growth potential.

Recent operational developments include:

• Initial preparations for a drilling program in Galveston Bay, with the first well expected the first quarter of 2012.
• Acquisition of SPE Navigation I, LLC, a private company with over $4 million in liquid assets, including 25% working interest and $18.8 million in net discounted proved reserves in Galveston Bay.
• Removal of “going concern” qualification from SEC filings, by independent auditors, due to strong and stable financial and operational performance, as well as significantly improved balance sheet.
• Proved Reserves of $77.7 million, as calculated by independent engineering firm.
• Initiation, through its partner, Core Energy, of a multi-well drilling program in Strategic’s Illinois project, with secondary recovery (waterflood) operations to commence soon.
• Initiation of multi-well recompletion program, with first well already adding approximately $22,000 in net monthly cash flow.

Upcoming operational developments include:

• Completion of initial secondary recovery (waterflood) pilot project in Illinois.
• Continuing capital infrastructure improvements and updates in Galveston Bay to increase production, decrease down-time, and improve safety and efficiency.
• Drilling first of Galveston Bay targets in first calendar quarter of 2012.
• Drilling several wells in South Texas to increase production and reserves.
• Continuing recompletion program to increase daily production from existing wells.

Strategic’s President and CEO, Jeremy Driver, summarized the company’s plan for 2012: “Our aim is to continue the rapid growth we have experienced over the last 12 months. We plan to accomplish this through proficient management and development of our existing assets, as well as making prudent acquisitions. We currently have years of projects that can multiply our production and revenues.”

For additional information, visit www.StrategicAmericanOil.com

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Strategic American Oil Corp. (SGCA) Announces 1,400% Increase in Revenues and Provides Operational Update

Wednesday, December 21st, 2011

Earlier this morning, Strategic American Oil Corp., an aggressive, growth oriented energy company, announced its fiscal first quarter financial and operational results.

Highlights Include:

• Revenue for the quarter totaled $1.56mm, a gain of 1,400% year-over-year.
• Assets increased by $7.86mm without the addition of any debt.
• Cash Used in Operations was $83,710 as compared to $250,000 in the previous quarter.
• Average reported production in the quarter of approximately 290 gross (230 net) Boe/d.
• As of Nov 30, 2011, production was estimated to be 445 gross (350 net) Boe/d.
• Current leasehold position of approximately 20,099 net acres in Texas and Illinois.

Budget and Liquidity Update

In its consolidated financial statements for the first quarter ended October 31, 2011, Strategic American Oil reported a total cash balance of $4.74mm. Coupled with the company’s available bank line, Strategic American Oil believes it has more than enough to meet the budgeted capital requirements for the next year, including the company’s planned drilling, recompletion, and infrastructure improvement programs.

Recent Developments

• Initiated preparations for drilling program in Galveston Bay; first well expected First Quarter 2012.
• Acquired SPE Navigation I, LLC, a private company with over $4mm in liquid assets, 25% working interest and $18.8mm in net discounted proved reserves in Galveston Bay.
• Independent auditors removed “going concern” qualification from SEC filings due to strong and stable financial and operational performance, as well as significantly improved balance sheet.
• Proved Reserves as calculated by independent engineering firm estimated at $77.7mm.
• Through its partner, Core Energy, Strategic recently began the multi-well drilling program in its Illinois project with secondary recovery (waterflood) operations to commence soon.
• Began multi-well recompletion program, with first well already adding approximately $22,000 in net monthly cash flow.

Growth Initiatives

• Continue capital infrastructure improvements and updates in Galveston Bay to increase production, decrease down-time, and improve safety and efficiency.
• Complete initial secondary recovery (waterflood) pilot project in Illinois.
• Drill first of Galveston Bay targets in first calendar quarter of 2012.
• Drill several wells in South Texas to increase production and reserves.
• Continue recompletion program to increase daily production from existing wells.

“Our aim is to continue the rapid growth we have experienced over the last 12 months. We plan to accomplish this through proficient management and development of our existing assets, as well as making prudent acquisitions. We currently have years of projects that can multiply our production and revenues,” stated Jeremy G. Driver, President and Chief Executive Officer of Strategic American Oil Corporation.

For additional information, visit www.StrategicAmericanOil.com

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Strategic American Oil Corp. (SGCA) Announces Completion of New Zone in Welder Ranch Well

Tuesday, December 13th, 2011

Shortly before the opening bell today, Strategic American Oil Corp. announced that it has successfully recompleted a “behind pipe” zone in its Welder #5 well located on the Welder Ranch in Calhoun County South Texas.

According to the press release, the Welder #5 was marginally profitable before the recompletion, but now it is flowing more than 310 Mcf of gas and 2 barrels of condensate per day without the aid of artificial lift. This well alone now contributes an estimated $22,000 in additional net monthly income to the company at current commodity prices.

“This recompletion is one of numerous projects we are undertaking to increase production and exploit our known oil and gas reserves, as well as increase our revenues and cash flow,” stated Steven Carter, Executive Vice President of Strategic American Oil Corporation.

The Company has a backlog of more than 15 existing wells for recompletion or rework to increase production, cash flow, and income. Strategic American Oil assured investors it will provide updates as information becomes available.

For additional information, visit www.StrategicAmericanOil.com

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Strategic American Oil Corp. (SGCA) Maintains Growth along Proven Path

Friday, December 9th, 2011

When Strategic American Oil received its fiscal year-end independent reserve report, prepared by Ralph E. Davis Associates, a long-standing Houston petroleum engineering firm, the numbers were impressive, but did not include reserves that were part of the recent acquisition of SPE Navigation I. When the SPE figures are added to the report’s numbers, Strategic is seen to have estimated net proved reserves of 1.6 million barrels of oil and 16.6 billion cubic feet of natural gas. Together, it adds up to roughly $128.2 million undiscounted, $77.7 million discounted at 10%, in net proved reserves.

In addition to a big boost in reserves, the SPE acquisition included working interests equal to one third of the working interests owned in four producing oil and gas fields in Galveston Bay near Houston. The deal also gives Strategic one million shares of stock in Hyperdynamics Corporation (NYSE: HDY), a Houston based international oil and gas exploration company with major operations in the Republic of Guinea in west Africa.

Strategic is a growth stage oil and natural gas exploration and production company, focused on domestic resources. The increased price of oil in recent years has been a boon to domestic producers, significantly revitalizing the prospects for domestic production. Strategic has been ahead of the curve, locking up important resources in Texas, Louisiana, and Illinois, and growing the company’s revenues.

Strategic continues to seek accretive acquisitions of production, reserves, and other companies with substantial growth potential. The company leverages 3D seismic data and other advanced technologies to identify oil and gas opportunities, and is currently producing oil and gas. Strategic expects to continue leasing, drilling, and acquiring projects at different levels of development.

For additional information, visit www.StrategicAmericanOil.com

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

Monday, December 5th, 2011

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 www.StrategicAmericanOil.com

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Strategic American Oil Corp. (SGCA) Strategy Combines Technology and Domestic Reserves

Wednesday, November 30th, 2011

Houston based oil and gas exploration and production company Strategic American Oil leverages 3D seismic data and other technologies to locate and produce oil in new and underexplored domestic locations. But the key to their strategy is the focus on known domestic reserves, including projects in Texas, Louisiana, and Illinois, potential that has become viable over the past several years due to the rise in oil prices. Strategic seeks accretive acquisitions of production, reserves, or other oil/gas companies that have the highest potential.

The company’s multi-tier growth plan includes the following:

• In-house development of salable drilling prospects retaining a carried interest to casing point
• Drilling of offset wells retaining a majority of the working interest
• Development of secondary recovery (waterflood) projects
• Increase production by re-working currently producing or previously producing wells
• Development of proven undeveloped zones (behind pipe) in existing wells.
• Acquiring currently producing oil and gas wells
• Completion of in-house 3D seismic projects and acquisition of 3D data where warranted and available

Strategic plans to continue leasing, drilling, and acquiring projects at various stages of development to increase revenue and grow its core reserves. The company is currently producing oil and gas, plus has proven reserves in Texas and Louisiana.

They recently announced the acquisition of Galveston Bay Energy, generating a significant increase in cash and oil production. An Engineering Report from Ralph E. Davis Associates, Inc. estimates net proved reserves of 979,000 barrels of oil and 13 Bcf (billion cubic feet) of natural gas, which translates to approximately $75.3 million undiscounted, or $54.6 million discounted at 10 percent, in net Proved Reserves.

The company has also leased land positions hosting previously producing wells with the goal of utilizing proven technologies, including Waterflood Recovery, to restart production. Targets have been identified through the use of various databases, including 3D seismic surveys, the Texas Railroad Commission database, and the Illinois Geological Survey.

For additional information, visit www.StrategicAmericanOil.com

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Insiders Keep Buying Strategic American Oil Corporation (SGCA)

Friday, November 25th, 2011

When it comes to trading shares of a company, an “insider” doesn’t necessarily have to be an officer or director, someone who could be expected to have access to inside information. It can be anyone who owns more than 10% of a publicly traded company. Whether officer or major shareholder, or both, these are people who have a lot of themselves wrapped up in the company, and their continued purchases suggest a growing commitment to and faith in the company’s future. As Peter Lynch famously said: “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise”.

Below is a record of recent insider transactions associated with Strategic American Oil, a domestic oil and gas exploration and production company based in Houston, Texas, a company that feels the price of oil supports the targeting of known reserves.

[11/8/11 – 11/11/11] – Jeremy Driver (President, CEO, Director) – Purchased 199,940 shares
[11/8/11 – 11/11/11] – KW Navigation Inc. (10% owner) – Purchased 170,000 shares
[11/8/11 – 11/11/11] – CW Navigation Inc. (10% owner) – Purchased 170,000 shares
[10/24/11 – 10/26/11] – Jeremy Driver (President, CEO, Director) – Purchased 100,000 shares
[10/18/11] – CW Navigation Inc. (10% owner) – Purchased 100,000 shares
[10/18/11 – 10/26/11] – KW Navigation Inc. (10% owner) – Purchased 105,000 shares
[10/14/11] – KW Navigation Inc. (10% owner) – Sold 5,000 shares
[10//12/11 – 10/17/11] – Jeremy Driver (President, CEO, Director) – Purchased 550,060 shares
[10/12/11 – 10/17/11] – KW Navigation Inc. (10% owner) – Purchased 555,000 shares
[10/12/11 – 10/14/11] – CW Navigation Inc. (10% owner) – Purchased 555,000 shares
[9/26/11] – KW Navigation Inc. (10% owner) – Purchased 31,666,666 shares
[9/26/11] – CW Navigation Inc. (10% owner) – Purchased 31,666,667 shares
[9/26/11] – Jeremy Driver (President, CEO, Director) – Purchased 31,666,667 shares

For additional information, visit www.StrategicAmericanOil.com

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Strategic American Oil Corp. (SGCA) Reports Positive Income from Operations; Anticipates Continued Increases in Production, Cash Flow and Assets

Thursday, November 17th, 2011

Strategic American Oil Corp. today reported its financial results for the fiscal fourth quarter ended July 31, 2011. Revenues totaled $1.92 million as compared to $1.49 million for the previous three quarters combined. Income from Operations for Q4 was a positive $3,118 as compared to a loss of $8.8 million in the three previous quarters combined.

The company also told investors that the “going concern” note has been removed from its audit opinion contained in its recently filed Form 10-K for the year ended July 31, 2011. The annual filing confirms that the Company has increased revenues, cash flow, assets, and cash reserves in 2011 compared to the previous year, as well as quarter over quarter improvement.

Jeremy G. Driver, President and Chief Executive Officer of Strategic American Oil, commented, “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,” noted. “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.”

The 10Q for the company’s fiscal first quarter ended October 31, 2011 should be filed within the coming weeks.

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Strategic American Oil Corp. (SGCA) Takes Advantage of New Oil Dynamic

Monday, November 14th, 2011

In all of your life, do you ever remember a time when experts weren’t warning that the world is rapidly running out of oil? It was an easy call, since oil, like any non-renewable resource, is finite, while oil usage continues to grow with industrialization. The fact is that oil has yet to be economically replaced, and, government programs aside, money still tends to rule. The idea that we’ll wake up one day and all of the oil will be gone fails to consider that critical dynamic. Oil doesn’t run out, it just gets tougher and tougher to find and extract, making it more expensive.

Look at the historic price of oil, adjusted for inflation. For years, much of the world’s oil came from the U.S., and the price was largely influenced by controls on production or price. In the early 1970s the price exploded, fueled by the Arab oil embargo, but the 1980s saw the inflation adjusted price of oil fall back down to the $20-$30 per barrel range (in current dollars).

Then, around the turn of the millennium, the world began to change. The fall of communism in the 1990s, and the turn toward capitalism and free markets, together with the rise of the Internet and globalization, created a relentless upward push in industrialization, and the real price of oil began a climb never before experienced. Only during the oil embargo of the 70s has the real price of oil been so high. With oil now in the $90s, the entire petroleum industry is changing. Wells long abandoned are suddenly viewed as liquid gold mines, and even the most intense environmental pressures have failed to stem the growing global demand for fossil fuels, still seen as the cheapest source of energy, especially for developing countries.

Strategic American Oil has been one of the most successful small companies in taking advantage of this massive shift in oil sourcing and demand. Carefully avoiding the many risks involved in speculative exploration, the company has followed a steady path of targeting existing production and reserves in secure domestic locations, quickly locking up projects and opportunities in Texas, Louisiana, and Illinois. By being smart enough to recognize this new source of low-hanging fruit, Strategic has already been independently assessed as having net proved reserves of roughly $77 million (discounted at 10%), and continues to grow.

For additional information, visit www.StrategicAmericanOil.com

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

Friday, November 11th, 2011

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 www.StrategicAmericanOil.com

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The Inside Track on Strategic American Oil Corp. (SGCA)

Monday, November 7th, 2011

When company executives purchase shares of their own company, it’s sometimes taken as a signal that positive things are in the wind. After all, who would have a better sense of a company’s future than the management team, and a willingness to put their own money on the table would seem to underline their confidence. In reality, of course, executives are only human, with a crystal ball that is often no clearer than anyone else’s. Moreover, insiders are legally restricted from making trades based upon anything other than publicly available information. Nevertheless, there is one thing that nobody can dispute about insider buying. It clearly puts insiders on the same side of the fence as investors, forging a commitment to success that is far more personal.

In the case of domestic oil/gas exploration and production company Strategic American Oil, insider commitment is best represented by the fact that the company’s CEO and Director, Jeremy Driver, has been a regular buyer of the company’s shares, as evidenced by transactions over just the past month (source – Yahoo Finance):

• 10/26/11 – 75,000 shares
• 10/24/11 – 3,250 shares
• 10/17/11 – 110,600 shares
• 10/14/11 – 40,000 shares
• 10/13/11 – 199,460 shares
• 10/12/11 – 200,000 shares

For Driver and other company officers, optimism is no doubt partly supported by the ongoing and well known boom in the domestic oil market, a rising sea that is lifting many ships. But Strategic’s position is considered especially strong, with a portfolio of already producing wells and cash flow, an example of the company’s strategy to grow through low risk development and workover projects. They have a solid inventory of diversified projects in Texas, Louisiana, and Illinois, with the money and technology for continued development and expansion. It’s a powerful combination that is not lost on the people closest to the action.

For additional information, visit www.StrategicAmericanOil.com

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Strategic American Oil Corp. (SGCA) Sees Opportunity in the Land of Lincoln

Tuesday, November 1st, 2011

The increase in the price of oil has reinvigorated the search for domestic resources, including those in states that the average American doesn’t normally associate with oil production. A prime example is Illinois. Far from the parched prairies of Oklahoma and Texas, Illinois is a state more associated with Chicago and agriculture than fossil fuels, and yet oil and gas have been commercially produced in Illinois for over a century. During this time, the state has produced well over 3 billion barrels of oil. Even more surprising is that there is an estimated 4 billion barrels still in the ground in the Illinois Basin, a huge geological structure covering most of Illinois.

Strategic American Oil, a growth stage domestic oil and gas exploration and production company, is growing its portfolio of oil projects in the Illinois Basin, in addition to the company’s operations in Texas and Louisiana. Strategic has leased over 2,900 acres in the Basin, with new projects being identified.

• Waterflood #1 – Strategic has been working on the WF1 Prospect for many months, and is now finalizing designs for the pilot program. An independent engineering report has identified potential reserves, indicating production can be achieved through primary and secondary recovery. In addition, there are other zones not fully exploited that may hold significant reserves.
• DST Prospect – Covering roughly 1,000 acres, the DST Prospect offsets fields that have produced from 764,000 barrels to over 3,500,000 barrels of oil. Strategic is now working to secure additional working interest partners to perform initial drilling of an offset well.
• Oakdale NE Prospect – There are numerous productive fields around the Oakdale NE area, with the original Oakdale North Field producing 761,000 barrels of oil.

Strategic’s CEO, Jeremy Driver, emphasizes the importance of the company’s Illinois prospects: “Allocating significant resources to the Illinois Basin is an integral part of the future growth for Strategic American Oil,” said President and CEO, Jeremy Driver. “We believe strongly that our development of these projects will reap great economic rewards for the company and its shareholders.”

For additional information, visit www.StrategicAmericanOil.com

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Strategic American Oil Corp. (SGCA) Continues to Grow Production at Galveston Bay

Tuesday, October 25th, 2011

In February, 2011, Strategic American Oil completed what CEO Jeremy Drive termed “a seminal event” for the company, the acquisition of Galveston Bay Energy, a Texas based owner and operator of oil and natural gas properties in Galveston Bay, southeast of Houston. The $9.9 million acquisition, funded with proceeds from a private placement, was immediately accretive to cash flow, production, and reserves, important to the company’s goal of growing production and cash flow through low risk development and workover projects. An independent engineering report from last year estimated net proved reserves of 3.6 million barrels of oil equivalent, together with important exploration opportunities for undiscovered deeper pools. The move gives Strategic American a multi-year inventory of diversified projects in a key producing hydrocarbon basin.

The recent acquisition included 4 fields:

• Trinity Bay
• Fisher’s Reef
• Red Fish Reef
• North Point Bolivar

Since completion of the Galveston Bay acquisition, Strategic American has been working to improve existing production infrastructure. As a result, gross production has steadily increased to over 260 barrels of oil per day and 420 Mcf of gas per day. The increased production is generating additional cash, which positions the company for continued growth.

With more than 120 wells, and only 20-30 wells currently producing, there is much room for low risk and low capital expansion, all in the shallow waters of Galveston Bay. Strategic American has already placed into production its initial post-acquisition well of Galveston Bay, the Fisher’s Reef G2-3A. The well is producing approximately 120 barrels of oil per day, plus 200 Mcf per day of natural gas. The PV-10 value of the acquisition was estimated at over $54 million for proved reserves alone. Multiple high-value targets have also been identified in Galveston Bay, and a full field study is underway to finalize a corresponding operational plan.

In addition, in September, Strategic American completed the acquisition of SPE Navigation I, which included certain oil and gas working interests equal to one third the working interests owned in the four producing oil and gas fields in Galveston Bay, further strengthening the company’s cash producing assets and balance sheet.

For additional information, visit www.StrategicAmericanOil.com

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Strategic American Oil Corp. (SGCA) Blends Experience with Latest Recovery Technology

Wednesday, October 19th, 2011

Strategic American Oil is a Houston based oil and natural gas exploration and production company acquiring oil and gas properties and companies with significant development potential. The company already has operations in Texas, Louisiana, and Illinois. Although supporters point most prominently to Strategic’s growing portfolio and unusually strong financial position, the company’s success to this point rests entirely on a leadership team that was essentially born and raised in the oil and energy industry.

• Jeremy Driver (CEO, Director), a long-time oil and gas operations and financial professional, has held various leadership positions throughout the industry. Among his achievements was the successful operational turnaround of HYD Resources, a subsidiary of publicly traded Hyperdynamics Corp. (NYSE: HDY), bringing the company to profitability. His critical eye for financials is supported by an MBA and MS in Accounting.

• Steven Carter (VP of Operations, Director) is a registered professional engineer with 25 years in oil and gas exploration, production, and management, including founding his own independent oil and gas company. He has a B.S. in Petroleum Engineering, and has been with Strategic since 2006.

• Sarah Berel-Harrop (CFO) has an MBA and 14 years of financial accounting experience. She was CFO for Hyperdynamics Corp., and operated an independent accounting firm in Texas prior to joining Strategic.

• Leonard Garcia (Land Manager, Director) is an Independent Petroleum Landman with over 30 years of oil and gas experience, including work with Uranium Energy Corp., Sun Oil, Oryx Energy, Texaco, and Kerr McGee, and as CEO of Texas corporations.

• Jim Thomas (Chief Geologist) has many years of exploration and production experience, including work with Everest Exploration, Atlantic Richfield, and Penasco Petroleum, and holds an MS in Geology.

• John Deleon (Geologist) has extensive experience in drilling operations, environmental inspection, prospect generation, and 3D seismic data analysis, and holds a BS in Geology.

Strategic American Oil’s team of geologists, engineers, and executives have demonstrated their ability to successfully leverage 3D seismic data and other exploration and production technologies, locating and producing oil and natural gas in new and underexplored areas. The company has stated its goal to continue seeking accretive acquisitions in the oil and gas industry.

For additional information, visit www.StrategicAmericanOil.com

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Strategic American Oil Corp. (SGCA) Proves Advantages Of Home Grown Resources

Friday, October 14th, 2011

Strategic American Oil Corp., a Houston based oil and natural gas exploration and production company, exemplifies a rising view in the energy industry that domestic oil and gas offers an expanding number of advantages over offshore and foreign operations. Much of this is due to a wealth of new technologies plus economic factors that have developed over the past 10-20 years, making previously untenable extractions economically viable.

Many people don’t realize that, although U.S. oil production peaked in 1973, the United States still has over half of the world’s active wells with the average U.S. well turning out about 10 barrels per day. More importantly, around 60%-80% of the original oil is still in place, remaining to be produced. In the case of Texas, no other region in the entire world has been as heavily explored or drilled, and yet there are still roughly 150,000 active oil wells and 60,000 gas wells in the state, producing over 1 billion barrels of oil/gas every year.The bottom line is that there are still tremendous amounts of energy yet to be extracted, over and above shale resources, and new technologies continue to build the potential. In the case of Strategic American, the intention is to look at decisions made forty plus years ago in the light of new technology and current economics to see what value can be extracted from that remaining 60% – 80% of untapped American oil.

Add to this the fact that the U.S., as the birthplace of the modern oil industry, still has the best oil and gas infrastructure and industry-experienced work force in the world. It’s the kind of environment that allows Strategic American to bring domestic oil to market in weeks or even days after a discovery is made, representing a huge advantage over offshore and foreign projects where political and timing issues often mean years of capital intensive development to generate a return. The result is that the risk-reward ratio turns toward domestic projects.

Strategic American currently has operations in Texas, Illinois, and Louisiana, and is in a financial position to aggressively seek accretive acquisition of additional properties and companies offering the required return on investment. The company has already established a land portfolio of 5,236 developed and undeveloped acres in Texas and Illinois alone. Strategic American has leased land positions hosting previously producing wells with the goal of utilizing proven technologies, such as water flood recovery, to enhance or reestablish production.

Texas – Strategic recently acquired Galveston Bay Energy, LLC, adding significantly to the company’s production and associated cash flow. Galveston net proved reserve estimates, based on a recent report from Ralph E. Davis Associates, Inc., are 12.9 million barrels of oil and 12.56 billion cubic feet of natural gas, translating into $97.4 million (undiscounted) or $59 million (discounted at 10%). Multiple high-value drilling targets have already been identified. This is all in addition to Strategic American’s production from two wells totaling 30 BOPD and 100 MCFGPD at the company’s Welder Lease project, plus working interest in the Janssen A-1 Well that produces 250 MCFGPD.

Illinois – So far, Strategic American has leased over 2,900 acres in the oil-rich Illinois Basin, including the Waterflood #1 prospect, along with the DST, and Oakdale NE. Moreover, the company has developed an enhanced recovery project in Markham City North field in Illinois, which has cumulatively produced 1.6 million barrels of oil. The goal is to provide Strategic American a relatively low-cost/high-reward portfolio of drilling locations in the heart of the Illinois Basin. The Illinois State Geological Survey (ISGS) estimates the Basin has over 4.1 billion barrels of oil remaining to be produced.

Louisiana - Strategic American also has production in Louisiana, holding a 6.25% overriding royalty on approximately 136 acres in Franklin Parish (the “Holt Lease”) and approximately 40 acres in Richland Parish (the “Strahan Lease”). The company’s Louisiana Holt wells are situated in the Delhi South Field, adjacent to Denbury Resources (NYSE: DNR). Denbury plans a secondary/tertiary recovery project using CO2 injection.

Financially, Strategic American is in a relatively strong position to pursue its growth strategy. In September of 2011, the company acquired SPE Navigation I, LLC, a private Texas based oil and gas company, which brought with it over $4 million in liquid assets. In addition to significant cash-producing assets, SPE also has a $10 million dollar working capital bank line, of which less than $1 million has been drawn, and holds no other debt. 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 in exchange for SPE. The net result is a substantial improvement in Strategic’s cash flow and balance sheet.

It’s important to note that SPE was owned by family members of Strategic’s CEO, Jeremy Driver, the same group that founded and developed Hyperdynamics Corporation (NYSE: HDY), a Houston based international oil and gas exploration company. The family has a history of emphasizing shareholder value, with the financial resources to follow through, as pointed to by the fact that Hyperdynamics saw its share price jump from $0.22 to over $7.00 in less than two years.

Strategic American has established and continues to follow an ambitious policy of acquisition, exploration, and development, with the goal of growing to become a mid-tier U.S. oil and gas developer. The company is currently negotiating to acquire additional oil and gas production, 3D seismic data, and independent companies.

Although Saudi Arabia and the Arab League, along with Russia, continue to be the world’s biggest oil producers, it should not be forgotten that the United State is next, with many U.S. and North American resources yet to be tapped or even fully explored. American oil production has actually increased since 2008, in spite of a sluggish economy. A domestic oil production renaissance stands to improve not only the nation’s trade balance but also its energy security. As technology continues to open the door to formerly out-of-reach resources, companies like Strategic American can be expected to play bigger roles in the nation’s energy future.

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Strategic American Oil Corp. (SGCA) Announces Estimated Net Proved Reserves at 1.6 Million Barrels of Oil with 16.6 Billion Cubic Feet of Natural Gas

Tuesday, October 11th, 2011

Today shortly before the opening bell, Strategic American Oil announced that it has received its fiscal year end independent reserve report for the company’s productive interests in Texas and Louisiana as of July 31, 2011. Investors should note that this reserve report does not include the recent acquisition of SPE Navigation I, LLC.

The report estimates net proved reserves of 1.2 million barrels of oil and 12.5 Bcf (billion cubic feet) of natural gas. According to the press release, this translates to approximately $97.3 million undiscounted, or $58.9 million discounted at 10 percent, in net proved reserves for Strategic American Oil.

When including the SPE interests, the number increases significantly to an estimated net proved reserves of 1.6 million barrels of oil and 16.6 Bcf (billion cubic feet) of natural gas, which translates to approximately $128.2 million undiscounted, or $77.7 million discounted at 10 percent, in net proved reserves for Strategic American Oil. This compares to the company’s current market cap of approximately $18.5 million.

In the press release, Strategic American Oil President and CEO, Jeremy G. Driver, commented, “The acquisition of Galveston Bay Energy has proven to be a valuable investment as evidenced by our increasing reserves, production and drilling opportunities. Our reserves have increased even further since our recent acquisition of SPE, which greatly enhances our revenues and cash flow.”

The independent reserve report was prepared by Ralph E. Davis Associates, Inc., a Houston-based petroleum engineering consulting firm since 1924.

The company also told investors that an updated corporate fact sheet is now available from its website, which can be found under “Investor Info.” Shareholders may also wish to view a recently completed interview with CEO Jeremy Driver who provides an overview of Strategic American Oil’s focus at the following link: http://youtu.be/T31Oo6cZWPg.

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Strategic American Oil Corp. (SGCA) Video Chart for Wednesday, October 5, 2011

Wednesday, October 5th, 2011

SGCA is holding a higher low since hitting $0.055 in June and looks ready to possibly bounce again after a recent slide. Equally important, a bounce in the near term will strengthen the possibility that the new higher lows are going to hold and the chart could be going through an overall trend shift towards bullishness.

To view the video chart, visit the following link: http://www.qualitystocks.net/videocharts

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

Wednesday, October 5th, 2011

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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Strategic American Oil Corp. (SGCA) is “One to Watch”

Friday, September 30th, 2011

Strategic American Oil Corp. is an oil and natural gas exploration and production company with operations in Texas, Louisiana, and Illinois. Leveraging its technical expertise, promising portfolio and strong financial condition, the company is in an advantageous position to experience remarkable growth in the near term future by aggressively leasing, drilling, and acquiring projects at various stages of development.

To date, Strategic American Oil has established a land portfolio with an aggregate gross 5,236 developed and undeveloped acres in Texas and Illinois alone. With this acreage, the company has identified new exploration targets and is applying advanced technology to maximize production. The company has also leased land positions hosting previously producing wells with the goal of enhancing or reestablishing production.

In September 2011, Strategic American acquired SPE Navigation I, LLC, which included over $4 million in liquid assets and a $10 million working capital bank line, in exchange for shares in the company. The previous owners, who founded and developed Hyperdynamics Corp. (NYSE: HDY), now own an even greater stake in Strategic American Oil as a result of this acquisition. To date, these owners have provided more than 70% of the company’s capital for acquisitions and are committed to long term shareholder value.

Over the last twelve months, Strategic American Oil has significantly expanded its oil and gas production. Revenues are also increasing at a rapid rate, putting the company well on its way to becoming a mid-tier U.S. oil and gas developer. In addition to expanding its current projects, Strategic American Oil continues to seek accretive acquisitions of production, reserves and other companies with promising hydrocarbon prospects.

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Strategic American Oil Corp. (SGCA) Executes LOI to Increase Interest in Galveston Bay Production

Tuesday, September 20th, 2011

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.

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Strategic American Oil Corp. (SGCA) Closes Galveston Bay Energy Acquisition, Average Production Rate of 378 boepd

Wednesday, February 16th, 2011

Strategic American Oil, www.strategicamericanoil.com – a growth stage oil and gas firm with working interests in a variety of projects throughout Texas, Illinois and Louisiana, reported closing of the Galveston Bay Energy, LLC (GBE) purchase today.

CEO of SGCA, Jeremy G. Driver, called it a seminal event for the Company, which will provide a solid financial and operational foundation for growth and cash flow targets.

The Texas Gulf Coast is home to the GBE properties, which consist of five rich fields spanning roughly 24.6k gross acres (23k net). GBE handles 100% of the production operations and maintains roughly an 85% working interest in essentially all of its producing properties.

An excellent move by SGCA as the $9.9M cash purchase price works out to an imputed cost of proved producing reserves to $0.46 per Mcfe (1k cubic feet equivalent), or just $2.75 per barrel of oil equivalent (BOE).

Production output at GBE averaged 378 BOE per day (2.3M cubic feet of gas equivalent per day) for the five-month period ending Dec. 31, 2010

Driver highlighted the winning characteristics of the transaction, explaining that it would be immediately accretive to cash flow, production and reserves on a per share basis.

Shareholders can look forward to steadily accruing value growth as the Company now has an extremely well developed portfolio of projects in centered around one of North America’s key producing hydrocarbon basins.

This all comes at a time when the future of energy, especially oil and natural gas, looks incredibly positive; global demand is skyrocketing while new discoveries and reserves dwindle, amid a mounting commodities market that puts further strains on energy consumption throughout the entire structure of the economy.

A planned program for 2011, devised by the Company, will focus on low risk development projects with abundant potential and workover projects. In addition SGCA will be tackling the promising subject of further exploration opportunities aimed at discovery of even deeper pools than what is identified in extant engineering data.

It looks like 2011 is shaping up to be a productive year for SGCA and this is also good news for domestic energy concerns/consumers, as the Company stands to deliver handsomely on its reputation for having one of the best geology, engineering and executive teams in the industry who are expert at employing proven exploration methods like 3d seismic analysis and others.

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