Source: Strategic American Oil Corporation
Strategic American Oil Corporation (OTCBB:SGCA) has identified a new Pinnacle Reef oil drilling target (the P4 Reef Prospect) in the Illinois Basin.
The prospect target is located at depths between 2,000 and 2,500 feet. The company plans to lease approximately 500-600 acres over the identified prospect and drill to evaluate the prospective subsurface geology. This prospect was identified in the Illinois Basin through the research of records from the Illinois State Geological Survey.
The P4 Reef Prospect is developed from coal exploration data and related information on record and available through the Illinois State Geologic Survey (ISGS). Coal drilling data shows a significant thinning of the number #6 coal at the P4 Reef Prospect. Historic oil drilling data associated with many oil productive pinnacle reefs in Illinois shows the existence of distinct thinning of the coal above the rigid reef structures.
Company President and CEO, Jeremy Driver, stated, "The identification of this drilling target adds to our development plans for the Illinois Basin. According to the ISGS, successfully developed pinnacle reefs in the region average about 2.5 million barrels of recoverable oil at depths of 2,000 to 3,000 feet. With prospects of this potential, we are very excited about our future development within the Illinois Basin."
"The Company is now at the point where it is not only focused on leasing but also drilling projects in our Illinois and Texas portfolios," Driver continued. "We have begun discussions with numerous parties interested in entering into a joint venture arrangement to expedite these drilling programs and we are seeing significant headway. This is a very exciting time for Strategic American Oil and its shareholders."
The Strategic American Oil team in Illinois, led by Chief Geologist Jim Thomas who has over 35 years experience working in the Illinois Basin, is continuing to make progress in finding and leasing new attractive targets, which furthers Strategic American Oil's business model of developing prospects in-house to build the Company's oil reserves and increase production. The Company will continue to review and evaluate data from the Illinois State Geological Survey to identify new drilling prospects with the goal of making new oil field discoveries.