Strategic American Preps for Koliba No. 3 Well

Strategic American Oil is pleased to announce that the drilling contract has been executed and drilling preparations have begun for the Koliba No. 3 well, with expectations to commence drilling this month, depending on favorable weather conditions and rig availability. The Company has retained a 12.5% working interest for the well. The combined leased acreage (Koliba) consists of 79 acres covering an anticipated anticlinal structure (target) with offsetting production. The Koliba #3 is a direct offset to the Murphy Baxter, Koliba #1 well which produced from the 5,880 feet (target) zone.

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 Frio Sand target zones at 5880', 5350', and 4930' under the Koliba leases. The Company plans to drill a direct offset to the Murphy Baxter, Koliba #1 well which produced from the 5880' (target) zone.

The Company completed drilling the Koliba #2 prospect in Victoria County, Texas earlier this year to 6,880 feet to evaluate three Frio sand objectives and found the well to be slightly downdip structurally but still productive. Rather than completing the #2 well, the Company decided to drill the #3 well and get updip to the #1 well, thereby making better use of investment capital.

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, Jeremy Driver, stated, "This is an exciting time for Strategic American Oil as we currently have two projects in South Texas, the Koliba and Kenedy, with drilling operations underway. Our expectations are that initial drilling results will be finalized for each of these projects in early 2011. We look forward to seeing the results of these operations."

About Strategic American Oil Corporation

Strategic American Oil Corporation (OTCBB:SGCA - News) is a growth stage oil and natural gas exploration and production company with operations in Texas, Louisiana, and Illinois. The Company's team of geologists, engineers, and executives leverage 3D seismic data and other proven exploration and production technologies to locate and produce oil and natural gas in new and underexplored areas. The Company seeks accretive acquisitions of production, reserves, or other companies that will provide significant growth potential. Further information can be found on the Company's website at


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