CORPUS CHRISTI, Texas, July 16 /PRNewswire-FirstCall/ -- Strategic American Oil Corporation (OTC:SGCA) (BULLETIN BOARD: SGCA) (the "Company") is an exploration and production company focusing on developing oil and gas resources in the United States. The Company is currently producing oil and gas and has proven reserves in both Texas and Louisiana. Led by President and CEO Randy Reneau, Strategic American Oil has a management team with more than 130 years combined oil and gas industry experience. The Company plans to lease and develop projects to build its core reserves and enhance its production portfolio. To date, Strategic American Oil has established a land portfolio with an aggregate net 3,284 developed and undeveloped acres in Louisiana, Texas, and Illinois. The Company has acquired producing wells and identified exploration targets. The Company has also leased land positions hosting previously producing wells with the goal of utilizing new technologies, including Enhanced Oil Recovery, to restart production. These targets have been identified through the use of various databases, including 3D seismic surveys, the Texas Railroad Commission database, and the Illinois Geological Survey. The Company has access to research databases and has acquired a significant land portfolio upon which to develop ongoing growth, with most recent developments including the following: 5 3D Seismic Surveys The Company entered into an agreement with Echo Geophysical giving the company access to five 3D seismic surveys. Through analysis of the first survey the Company has identified a significant Frio Sand (gas) target in South Texas. The target is an anticlinal structure with 4-way closure covering portions of six sections. The Company plans to lease approximately 1,000 acres over the identified structure and proposes to drill one to two wells to test the Frio sand zones. The Company has received the second and third 3D surveys and is preparing to analyze the data. The Company will receive the fourth and fifth databases shortly. Waterflood Through researching the Illinois State Geological Survey the Company has identified and leased 372 acres of an oil field that previously produced an aggregate of 1.5 million barrels of oil during the 1940s and 50s (as stated in the Illinois Geological Survey). Nearby waterflood operations in the same zones have yielded a 1:1 recovery. The Company plans to use existing onsite wells for injection while drilling new recovery wells to 4,000 feet. Koliba/Ensley The Koliba/Ensley Prospect lies in the North McFaddin Field, Texas, which, according to the Texas Railroad Commission's records, hosts 87 productive oil and gas zones. The Company has identified 3 target zones at 5880', 5350', and 4930' under the Koliba/Ensley lease. Texas Railroad Commission records state 7 wells from these 3 target zones produced 390,426 barrels of oil and 2,472,481 MCF (thousand cubic feet) of gas between 1962 to 1989. The Company plans to drill a direct offset to the abandoned Koliba #1 well to 6880 feet. Oakdale To date, Strategic American Oil has leased over 1800 acres in the Oakdale and DST prospect areas. The Company plans to shoot several 2-D seismic lines on currently held leases in conjunction with seismic option agreements in order to confirm subsurface structures. Confirmation of structures will be followed by drilling. Targets range in depth from 2,000' to 4,000'. Leases acquired to date are primarily 87.5% Net Return Interest. Barge Canal The Company currently produces from two Frio Sand wells (5800') located on the Barge Canal (Welder) Lease. The wells produce 30 BOPD along with 100 mcfgpd. A gas lift system is utilized to produce the wells. Gas not used in the gas lift system is sold. The lease also contains one salt water disposal well (SWD). About Strategic American Oil Corporation Strategic American Oil Corporation (OTCBB: SGCA) is an exploration and production company with operations in Texas, Louisiana, and Illinois. The company draws 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. http://www.strategicamericanoil.com/ For further information please contact: Corporate Office Suite 2015, 600 Leopard Street Corpus Christi, Texas, 78473 Investor Relations (800) 643-5815 Safe Harbor Statements Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect," "is expected," "anticipates" or "does not anticipate," "plans," "estimates" or "intends," or stating that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements." Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of oil or gas resources, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labour disputes and other risks of the oil and gas industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date the statements are made and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change, except as required by applicable law. Such forward-looking statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, including, the risks and uncertainties outlined in our most recent financial statements and reports and registration statement filed with the United States Securities and Exchange Commission (the "SEC") (available at http://www.sec.gov/). Such risks and uncertainties may include, but are not limited to, the risks and uncertainties set forth in the Company's filings with the SEC, such as the ability to obtain additional financing, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's periodic reports filed from time-to-time with the SEC. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. DATASOURCE: Strategic American Oil Corporation CONTACT: Investor Relations, 1-800-643-5815, for Strategic American Oil Corporation Web Site: http://www.strategicamericanoil.com/

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