Strategic American Oil Corporation Accepts Purchase Offer for Louisiana Leases



    CORPUS CHRISTI, Texas, June 23 /CNW/ -- Strategic American Oil
Corporation (OTC Bulletin Board:   SGCA; the "Company") is pleased to announce
it has accepted an unsolicited offer to acquire all of the company's interest
in leases and production in Franklin and Richland Parish, Louisiana from
Frazier Resources Company, Houston, Texas.  Under the terms of the offer, the
Company would receive 75% of a $775,000.00 cash payment, or $581,250 for the
Company's 75% interest in the Holt, Strahan and Dixon leases.  The Company
originally acquired the producing leases in the 4th quarter of 2006 for
$250,000.  Frazier Resources is currently engaged in a review of the Company's
leases, assignments, lease operating expenses, and related documents.  Upon
successful completion of Frazier's due diligence review, the parties will
execute a "Letter of Intent" outlining the final sales terms and subsequently
close the transaction.

    Company President and CEO, Randall Reneau, stated, "Although acquiring
properties, both developed and undeveloped, is the core of our current growth
model, the Company could not turn down such an attractive offer that will give
the Company a strong return on its original investment while increasing our
cash position without diluting our share capital.  The sale of these leases
will allow us to focus on larger reserve plays, including a 3D seismic target
in S. Texas and an enhanced oil recovery project in Jefferson County,
Illinois, both of which have potential significant reserves."
    

    About Strategic American Oil Corporation

    
    Strategic American Oil Corporation (OTCBB: SGCA)is an Oil and Gas
exploration and development company with operations in Texas, Oklahoma,
Louisiana, and Illinois.  The Company draws on the experience of 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.
    

    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 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.
    




    




For further information:

For further information: Investor Relations of Strategic American Oil
Corporation, 1-800-643-5815 Web Site: http://www.strategicamericanoil.com

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STRATEGIC AMERICAN OIL CORPORATION

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