Strategic American Oil Corporation Signs Joint Agreement to Develop Its Initial Waterflood Recovery Project in Markham City North, Illinois

Corpus Christi, Texas (Globe Newswire) – Strategic American Oil Corporation (OTCBB) announced today that it has executed Farmout and Joint Operating Agreements with Core Minerals Operating Co., Inc. (“Core”) to develop the Company’s initial waterflood project in Markham City North, Illinois.

The Agreement requires Core to commence development of the field on or before June 30, 2011. Strategic American Oil has retained certain carried working interest in the field which, after development activities have commenced, will eventually increase to at least 25 percent. The primary target at this time is the McClosky formation, which has been successfully waterflooded in several other Illinois Basin fields. This field originally produced approximately 1.6 million barrels of oil and it is estimated that there could be as much or more oil remaining to be recovered.

About Core Minerals Operating Co., Inc.
Core Minerals, based in Evansville, IN, is an Exploration and Production Company focused on optimizing active and inactive producing oil properties in the Illinois Basin and other analogous areas. Further information on Core Minerals may be found on the Company’s website at

About Strategic American Oil
Strategic American Oil Corporation (OTCBB:SGCA – News) is a rapidly growing oil and natural gas exploration and production company with primary operations in Texas, as well as Louisiana, and Illinois. The Company utilizes advanced 3D imaging data and other proven technologies to locate and exploit oil and natural gas within its core area of operations, as well as the exploration of deeper pools. The Company seeks accretive acquisitions of production, reserves and other opportunities which will provide significant growth potential. Further information can be found on the Company’s website at

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