Everything's Bigger in Texas, Including SGCA's
Revenue Potential from Oil and Natural Gas!!
Texas produces over a Billion Barrels of oil each year and has the largest natural gas reserves of any state in the US and Strategic American is staking its claim.
You read above how the company is already generating cash flows from one of its Texas holdings but that's barely even the beginning of what SGCA believes it can produce in the Lone Star State! Strategic American has already found abandoned wells worth reclaiming and new high-potential, low-risk exploration targets in Texas.
But Strategic Oil's MOST EXCITING prospect in Texas is a potentially HUGE NATURAL GAS WELL that could generate the Company MILLIONS OF DOLLARS in annual revenue!
Frio Sand Natural Gas Target -
$8.5 Million in Potential Annual Revenue
Successful gas wells in the area of SGCA's 850 acre Frio Sand (gas) target have contained reserves of between 10 billion and 300 billion cu ft of gas while a modest well containing 20 billion cubic feet would be a highly profitable project for Strategic American.
Not only that, Frio Sand also produces a condensate by-product of natural gas that sells for the same price as crude oil. With very conservative estimates of gas and concentrate production levels as well as crude oil prices, SGCA would follow its usual low-risk practice of retaining a 25% working interest (after recovering the development costs) and make almost $2.5 Million in Annual Revenues. How's that for a downside?
Now if the well produces as much gas and condensate as the Company believes it can, then they would naturally keep a 90% stake in the claim, which could generate annual revenues of $8.5 Million!!!
SGCA has also acquired a 146 acre parcel known as the Koliba Lease in North McFadden Field, Victoria County, a region proven to be very productive for oil and gas and has new plans to drill an offset of an old defunct well and use its profit-generating "1/3 for 1/4 arrangement" to finance its development and potentially generate over
Half a Million dollars in annual revenue with almost no risk or capital requirements by the Company!
SGCA's Louisiana Holding Could See Huge
Production Increases without Investing a Dime!!
We all know that sometimes in life, luck can make a huge difference in our fortunes and there is a great chance that SGCA is about to see its fortunes go way up!!
Listen to how one of the Company's wise investments in Louisiana will very likely be rewarded with a
HUGE INCREASE in Oil Production with absolutely no investment or extra work by the Company.
Denbury Resources, a publicly traded company, has spent $50 million to acquire substantial acreage adjacent to Strategic American's properties. They are planning to use a CO2 Flooding process that would substantially increase oil production success rates by up to 40%!!
That could result in considerably higher production from these properties - adding to Strategic American's cash flow without requiring any additional investment!
Recognizing the huge potential, Strategic American plans to continue leasing properties in the Delhi South Field area and bringing more abandoned wells back into production - a process which could greatly increase its revenues over the next few years.
Talk about being in the right place at the right time!! SGCA plans to be, make sure you are too!!
Call your Broker or go online and Claim Your Stake Today!!!
Oil in Illinois! Surprised? Strategic American Oil Isn't
Just Two of its Abandoned Fields Could Yield
$14 - $16 Million per Year!!!
Illinois may not be the first name you associate with oil, but over the past 100 years more than 3.2 billion barrels have been produced in the state and according to the Illinois State Geological Survey, there's another 4.1 billion recoverable barrels left!
At present, Strategic American has leased over 2,700 acres in Jefferson County, Illinois, which can be divided into three different types of projects.
Waterflooding Techniques
In 2010, Strategic American will be putting special emphasis on two abandoned oil-producing areas in Illinois that could generate $14-16 million a year with the use of a secondary oil recovery technique called waterflooding.
Waterflooding is a simple enough process where water is injected into an oil reservoir through a series of shafts. In this case, the Strategic American can use a number of abandoned wells on the property as injection wells. The pressure from this flooding will then force more oil to the new wells the company plans to drill.
Successful waterflood techniques in these areas have produce a 1:1 ratio from primary to secondary recovery.
In fact, the risk/reward ratio on this project looks to promising the company is considering maintaining a 100% working interest. Development costs could be recovered within 12 months from the start of production, and the project from then on could generate $7.7 million in annual net revenue.
As if their Waterflooding Well Prospects aren't exciting enough, Strategic American believes it has identified 10 possible pinnacle reefs on properties it is currently leasing for the low cost of $25/acre. Pinnacle Reefs are isolated, underground, biothermal formations that contain oil and are often especially profitable because they are found at very shallow depths, making them very inexpensive to drill compared to most oil deposits.
So far in Illinois, 30 productive reefs have been discovered containing an average of 3.8 million barrels of oil each. In coming months, SGCA will finalize the leasing of these projects and either obtain or shoot 2D or 3D seismic surveys to spud dry hole tests.
As reefs and non-reef deposits with high profit potential are confirmed, the company will bring in working partners on a "1/3 for 1/4" basis and begin drilling.
Oil is About to Enter a Long Term Bull Market
Pushing SGCA's Margins Through the Roof!!!
How could there be so many Abandoned Oil Fields in America for SGCA to drill and profit from? The answer is Economics. From the 1970s to the early 1980s, oil prices skyrocketed from under $5 a barrel to nearly $40, encouraging companies to bring many new oilfields into production. But then, oil prices fell drastically from 1986 to 2000, averaging less than $20 a barrel, and many fields became no longer profitable.
The result was that 1,000s of perfectly good fields containing millions of barrels of oil and billions of cubic feet of natural gas were shut down and abandoned, while other promising deposits were never developed in the first place.
Since the late 1990s, oil prices have climbed more than 4X and with oil currently selling at over $70, these abandoned and overlooked fields have become virtual treasure troves. The oil and gas they contain is worth millions of dollars a year to the company that can restore them to production.
What's more, there is every reason to believe that oil prices will only go higher in the future as worldwide demand for oil continues to increase, especially in developing nations such as China and oil production outside of OPEC countries enters a permanent decline in 2010 as the International Energy Agency predicts.
This will make the U.S. and the rest of the world increasingly dependent on oil from the Middle East - which remains as politically unstable as ever. That imbalance between supply and demand will likely result in oil prices being locked into a permanent bull market.
What's the Bottom line? Any oil produced in the U.S. is set to become more and more valuable over the next few years. And an oil company that can bring America's forgotten oil fields online could reward investors with an explosion in share prices!!
SGCA is Positioning Itself for Aggressive Growth!!
With a proven team that includes technical expertise in oil/gas operations, business management and financing, the company is in a strategic position to find and acquire projects of significant merit and develop these projects to their full potential.
The Company plans to leverage its expertise is 3D seismic and historic data evaluation to continue to identify new targets of exploration and opportunities of redeveloping past producing wells. Strategic American Oil is aggressive in its growth seeking projects that will turn a development stage oil and gas exploration company into a mid-tier US oil and gas developer.
The Texas, Louisiana Oklahoma and Illinois projects are the foundation of an exciting exploration and development program. The prospects reviewed are a sample of the opportunities that are being developed by the Strategic American Oil team. SGCA is currently negotiating to acquire additional oil and gas production, leases, and 3D seismic data. Continued success and investor support will provide the Company with the means to acquire and capitalize on prospects that are consistent with its strategy.
Long-term economic forecasts view the energy sector following an upward trend. Acquisitions of energy resources and energy resource companies, especially those with oil and gas assets, are accelerating. Strategic American Oil Corporation's technical expertise and current operations in Texas, Louisiana, Oklahoma and Illinois, place the Company in advantageous position to experience vertical growth in the near future. |