Strategic American Oil has received its fiscal year end independent reserve report for the company's productive interests in Texas and Louisiana as of July 31, 2011, which was prior to the recent acquisition of SPE Navigation I, LLC.
The report, not including reserves from the acquired interests of SPE, estimates net proved reserves of 1.2 million barrels of oil and 12.5 Bcf (billion cubic feet) of natural gas which translates to approximately $97.3 million undiscounted or $58.9 million discounted at 10 percent in net proved reserves for Strategic American Oil.
If the SPE interests are included, the numbers increase to an estimated net proved reserves of 1.6 million barrels of oil and 16.6 Bcf (billion cubic feet) of natural gas which translates to approximately $128.2 million undiscounted or $77.7 million discounted at 10 percent in net proved reserves for Strategic American Oil.
Strategic's recently completed acquisition of SPE Navigation I, LLC brought with it additional working interest in Galveston Bay and one million shares of Hyperdynamics stock.
Strategic American Oil President and CEO, Jeremy G. Driver, stated, "The acquisition of Galveston Bay Energy has proven to be a valuable investment as evidenced by our increasing reserves, production and drilling opportunities. Our reserves have increased even further since our recent acquisition of SPE, which greatly enhances our revenues and cash flow."
The independent reserve report was prepared by Ralph E. Davis Associates, Inc., a Houston-based petroleum engineering consulting firm since 1924.
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