Strategic American Oil Corporation Acquires Significant Lease Position in Former Producing Field in Illinois Basin

    CORPUS CHRISTI, Texas, June 3 /CNW/ -- Strategic American Oil Corporation
(OTC Bulletin Board:   SGCA; the "Company"), is pleased to announce it has
leased an Illinois land position in a previously producing oil field that
could host significant in-place reserves through Enhanced Oil Recovery.  By
researching the Illinois State Geological Survey, the Company has discovered
the oil field previously produced an aggregate of 1.5 million barrels of oil
during the 1940s and 50s.  Nearby waterflood operations in the same zones have
yielded a 1:1 recovery.  The Company has leased approximately 372 acres of the
oil field.  The Company plans to use existing injection wells while drilling
new recovery wells to 4,000 feet.

    Company Chief Geologist, Jim Thomas, who has approximately 30 years of
experience in the Illinois basin, and a BS and MS from South Illinois
University, is heading up the Company's Illinois operations and will review
engineering and development plans with Barger Engineering, of Evansville,
Indiana.   Barger has engineered a number of waterfloods in Illinois with a
long history of success.

    Company President, Randall Reneau, stated, "This project offers the
Company low risk long-term production potential in a proven waterflood area. 
The Company plans to design a pilot waterflood operation for the project,
which, if proven, would be expanded into commercial operations."

    The Illinois Basin is a mature oil producing environment with a
production history covering over 100 years. This development history has
generated a large database including records for more than 180,000 wells. 
Strategic American Oil is working to grow the Company's reserves, and
accessing and analyzing these historic records minimizes cost while
identifying exploration and historical production targets to meet that growth.
 To date the Company has leased over 2000 acres in Illinois through utilizing
these records.  Finding and leasing this waterflood project demonstrates the
value of these historic records and the Company's expertise in managing those

    "Waterflood" or "enhanced oil recovery" is an oil extraction method where
water is pumped into an injection well displacing the reservoir formation and
forcing the oil into a recovery well.  This method is used to recover 
additional oil in place following primary production methods.

    About Strategic American Oil Corporation

    Strategic American Oil Corporation (OTCBB: SGCA) is an exploration and
production 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.

    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  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

    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


For further information:

For further information: Corporate Office, Investor Relations,
1-800-643-5815 Web Site:

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