When Strategic American Oil received its fiscal year-end independent reserve report, prepared by Ralph E. Davis Associates, a long-standing Houston petroleum engineering firm, the numbers were impressive, but did not include reserves that were part of the recent acquisition of SPE Navigation I. When the SPE figures are added to the report’s numbers, Strategic is seen to have estimated net proved reserves of 1.6 million barrels of oil and 16.6 billion cubic feet of natural gas. Together, it adds up to roughly $128.2 million undiscounted, $77.7 million discounted at 10%, in net proved reserves.
In addition to a big boost in reserves, the SPE acquisition included working interests equal to one third of the working interests owned in four producing oil and gas fields in Galveston Bay near Houston. The deal also gives Strategic one million shares of stock in Hyperdynamics Corporation (NYSE: HDY), a Houston based international oil and gas exploration company with major operations in the Republic of Guinea in west Africa.
Strategic is a growth stage oil and natural gas exploration and production company, focused on domestic resources. The increased price of oil in recent years has been a boon to domestic producers, significantly revitalizing the prospects for domestic production. Strategic has been ahead of the curve, locking up important resources in Texas, Louisiana, and Illinois, and growing the company’s revenues.
Strategic continues to seek accretive acquisitions of production, reserves, and other companies with substantial growth potential. The company leverages 3D seismic data and other advanced technologies to identify oil and gas opportunities, and is currently producing oil and gas. Strategic expects to continue leasing, drilling, and acquiring projects at different levels of development.
For additional information, visit www.StrategicAmericanOil.com
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