Strategic American Oil, Core to Develop Recovery Proj. in Illinois
Strategic American Oil has executed Farmout and Joint Operating Agreements with Core to develop the Company's initial waterflood project in Markham City North, Illinois.
The Agreement requires Core to commence development of the field on or before June 30, 2011. Strategic American Oil has retained certain carried working interest in the field which, after development activities have commenced, will eventually increase to at least 25 percent. The primary target at this time is the McClosky formation, which has been successfully waterflooded in several other Illinois Basin fields. This field originally produced approximately 1.6 million barrels of oil and it is estimated that there could be as much or more oil remaining to be recovered.