Strategic American Oil Corporation Leases Additional Acreage in Illinois Basin


    CORPUS CHRISTI, Texas, Aug. 6 /CNW/ -- Strategic American Oil Corporation
(OTC Bulletin Board:   SGCA) (the "Company") is pleased to announce it has
leased additional acreage in the Illinois Basin.  The Illinois State
Geological Survey (ISGS) has estimated the Illinois Basin has the potential to
recover approximately 4 billion barrels of oil.  To date, the Company has
leased 2757.9 acres covering several prospects in Jefferson County.  The
Company also leased an additional 213.84 acres in Hamilton County which has
been "farmed out" to Admiral Exploration Company (Strategic retained a 5% ORRI
and a 10% back-in after payout). Total acres leased to date, including farmed
out leases, is approximately 2971.74 acres. These leases cover multiple zone
targets, to 4000 feet, as well as a potential waterflood prospect.

    The Company's Oakdale Northeast, DST, and the Waterflood Prospect
(Jefferson County) are on trend with and offset fields that, according to the
ISGS, have produced 764,600 to 3,570,500 barrels of oil from depths of 3,000
to 4,000 feet. These prospects were identified from geologic and historic well
information provided by the state of Illinois State Geological Survey.

    Jim Thomas, Company Chief Geologist with over 35 years of experience in
the Basin, has identified through the research of the ISGS records that the
Waterflood Prospect, a historic oil field the Company is currently leasing
(461 ac. Leased to date), originally produced over 1.5 million barrels of oil.
 ISGS records also indicate that waterflood recovery methods produce an
approximate 1:1 recovery rate.

    "By utilizing the ISGS database to review current and historic oil fields
with similar geologic characteristics to the Company's current leases,
Strategic is able to compare the potential of our conventional as well as
secondary recovery (waterflood) prospects in the Basin," said Company
President, Randy Reneau. "These shallow oil trends offer the possibility of
near term production and significant cash flow."

    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 on 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:
    Suite 2015, 600 Leopard Street
    Corpus Christi, Texas,  78473
    Phone: (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: Strategic American Oil Corporation,
1-800-643-5815 Web Site:

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