QualityStocks would like to highlight Strategic American Oil Corp. (OTCBB: SGCA). Strategic American Oil is a growth stage oil and natural gas exploration and production company with operations in Texas, Louisiana, and Illinois. The Company's team of geologists, engineers, and executives leverage 3D seismic data and other proven exploration and production technologies to locate and produce oil and natural gas in new and underexplored areas.
In the company’s news yesterday,
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 numbers increase 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.
About QualityStocks:
QualityStocks, based in Scottsdale, Arizona, is a free service that collects data from hundreds of Small-Cap and Micro-Cap online Investment Newsletters into one Daily Newsletter Report. QualityStocks is dedicated to assisting emerging public companies with their investor communication efforts and connecting subscribers with companies that have huge potential to succeed in the short and long-term future.
To sign up for “The QualityStocks Daily Newsletter” please visit www.QualityStocks.net
Please see disclaimer on QualityStocks website: http://Disclaimer.QualityStocks.net
Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
