PRZOOM - /newswire/ -
Winston-Salem, NC, United States, 2010/05/03 - SmallCapReview a leading site for news and information on small caps, penny stocks and microcaps is adding Strategic American Oil (OTCBB: SGCA) to its list of stocks "On the Radar".
Strategic American Oil (SGCA) is an exploration and production company with operations in Texas, Louisiana and Illinois. The company draws on an internationally recognized team of geologists, engineers, and executives with extensive oil and gas exploration and production experience combined with corporate and financial expertise. SGCA has developed and implemented a multi-tier growth program:
• Develop salable drilling prospects in-house retaining a carried interest to casing point.
• Drilling of 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.
• Develop proven undeveloped zones (behind pipe) in existing wells.
• Acquire currently producing oil and gas wells.
• Complete in-house 3D seismic projects and acquire 3D data where warranted/available.
SGCA Investor Highlights
Announced it has completed the purchase of the remaining 10% working interest in the Company's Calhoun Co., Texas "Welder" lease. The Company now owns 100% of the working interest in the producing 81-acre lease.Announced it has completed reworking of the Dixon No. 1 well on the Company's 160-acre Dixon lease located in Franklin Parish, La and is achieving initial oil production.
The Company also plans to rework the Dixon No. 2 well as soon as weather and ground conditions allow. The Dixon salt water disposal well has also been reworked, including upgrading of pump, flow lines, and state inspection. In addition to the Dixon No. 1 and 2 wells, there are two possible offset drilling locations and potential for deeper targets.
Company President and CEO, Jeremy Driver, stated, "The Welder Lease has been very profitable for the Company as we reached payout in a 24-month span. Production continues at a generous and healthy rate, and because of this we see it as in the best interest of the Company to lease the remaining 10% Working Interest in the producing wells. We are always ready to make investments when we believe the economics are in our favor. The Welder working interest lease makes good sense for our company and our shareholders."
Denbury Resources (NYSE) acquired the Delhi Field ($50 million acquisition) adjacent to Strategic American Oil's leases. Denbury is developing a secondary/tertiary recovery project using CO2 injection and has completed a ~300-mile CO2 pipeline from Mississippi to the Delhi Field and has begun injection and oil recovery (~200 BOPD) from a portion of the Delhi Field.
Announced that the drilling contract for the Company's Victoria Co., Texas "Koliba" Prospect has been executed with expectations to commence drilling operations this month, depending on favorable weather conditions and rig availability. The Company will retain a 16.33% carried working interest to casing point, 25% working interest after casing point, putting the Company in a low risk/high reward scenario. The combined leased acreage (Koliba-Linville) consists of 143 acres covering an anticipated anticlinal structure (target) with offsetting production. The Company plans to drill a direct offset to the Murphy Baxter, Koliba #1 well which produced from the 5,880 feet (target) zone.
The Koliba Prospect lies in the North McFaddin Field, which, according to Texas Railroad Commission maps and records, hosts 87 productive oil and gas zones.
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