Fact Sheet

Strategic American Oil Corporation fact sheet:

Now is an exciting time to track the developments of Strategic American Oil Corporation (OTCBB:SGCA).

Here's why:

• DST Project leased with drilling programed being developed
• Koliba drilling program to commence in next 10 days pending weather
• Frio target leased with 3D targeted bright spot indicating 4 way closure
• 2 secondary Waterflood recovery projects leased with primary production over 3 million barrels
• Current revenue through production in Texas and Louisiana

Experienced and Proven Management Team:

• Randy Reneau, Chairman, 30 Years Experience as a geologist (domestic and foreign), ex-President of REDCO, Inc. in Texas
   
• Jeremy Driver (BSc and MBA) President and CEO, former President of AMEX listed oil/gas subsidiary, served in the US army as an intelligence specialist
   
• Steven Carter, VP of Operations, 13 years with T-C Oil in Texas, 30 years of Gulf Coast oil and gas engineering experience
   
• Bob Bennett, well known Texas geologist, 22 discoveries in South Texas – all 10 BCF or greater (4 in Kennedy County), in-house proprietary 3-D seismic model identifies overlooked oil and gas fields- best in class historical track record in the state of Texas

SGCA is having success meeting its goal of increasing production while building its reserve bank.  All operations within the friendly confines of the U.S. give SGCA unequivocal security of its assets.  Due to low oil prices last year, there were acquisition bargains available and the Company took full advantage by aggressively leasing land positions in Illinois, Louisiana, and Texas. 

Recent Development: SGCA re-engineered its first of two wells on its Dixon property.  This first well is now producing oil and will build upon the company’s revenue and reserves.  The Company is now re-engineering the second well and expects to gain the same results.  The Dixon project also offers two possible offset drilling locations and a salt water disposal well (“SWSDW”)

Recent Transaction: SGCA Leased a 1,200 acres field in oil/gas rich Kenedy County.  The Company has 3D seismic data on the property that indicates a “Bright spot with a 4 way closure.”  Strategic American is currently working up the geological study/engineering report to prepare for drilling operations.  

Recent Transaction: SGCA leased additional acreage in the Illinois Basin.  The Illinois State Geological Survey (ISGS) has estimated the Illinois Basin has the potential to recover approximately 4 billion barrels of oil.  To date, the Company has leased 2780 acres covering several prospects in Jefferson County.  The Company also leased an additional 213.84 acres in Hamilton County which has been “farmed out” to Admiral Exploration Company (Strategic retained a 5% ORRI and a 10% back-in after payout). Total acres leased to date, including farmed out leases, is approximately 3,028 acres. These leases cover multiple zone targets, to 4000 feet, as well as a potential waterflood prospect and pinnacle reef prospects.

Outlook for Oil and Gas:

• Oil prices have seen a strong rebound from the recent lows of $35 to $72/barrel
   
• Top analyst Jeff Rubin states, “By the fourth quarter of this year, oil prices will be back in triple-digit range, and by next year oil prices will rise to record highs, taking out the high-water mark of $147 per barrel…”
  http://www.theglobeandmail.com/report-on-business/commentary/jeff-rubins-smaller-world/expect-a-new-peak-for-oil-next-year/article1517154/
   
• SGCA aims to capitalize on this price by leasing, drilling, and acquiring and re-engineering projects at various stages of development

With oil rebounding, key leases tied up in attractive states SGCA has entered 2010 with all the pieces in place to move forward with its ambitious growth plans. We appreciate your interest in Strategic American Oil Corporation.

About Strategic American Oil Corporation

Strategic American Oil (OTCBB: 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. The Company's objective is to find and acquire oil and gas projects of merit and develop those projects to their full potential.

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