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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