Strategic American Oil Corporation Announces Acquisition of Ensley Lease Furthering Land Position in Its Koliba Prospect



    CORPUS CHRISTI, Texas, June 9 /CNW/ -- Strategic American Oil Corporation
(OTC Bulletin Board:   SGCA) is pleased to announce it has acquired an
assignment from Ensley Properties, Inc. covering a number of oil and gas
leases on a 64 acre tract adjacent to the Company's 79 acre Koliba lease in
Victoria Co., Texas.  The Ensley lease assignments conveyed an 86.93% working
interest in the 64 acre tract  The combined leased acreage (Ensley-Koliba)
gives the Company a total of 143 acres over an anticlinal structure (target)
that underlies portions of both tracts.

    The Koliba Prospect lies in the North McFaddin Field, which, according to
Texas Railroad Commission maps and 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.

    Company V.P. of Operations, Steven Carter, who has over 25 years
engineering experience in oil and gas exploration, production operations,
reservoir management and drilling, will operate the well through Carter E&P,
LLC, a licensed and bonded operator in the State of Texas.

    Company President and CEO, Randall Reneau, stated, "Acquisition of the
Ensley leases in combination with the previously leased Koliba tract secures
the Company's interest in the Koliba anticlinal structure.  The Koliba
Prospect offers a relatively low risk offset development well in an area we
have experience due to our production on the nearby Welder (Barge Canal)
lease."
    

    About Strategic American Oil Corporation

    
    Strategic American Oil Corporation (OTCBB: SGCA - News) is an 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, 1-800-643-5815 Web Site:
http://www.strategicamericanoil.com

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STRATEGIC AMERICAN OIL CORPORATION

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