Strategic American Oil Corporation has completed the placement of all available working interest in the Company's Victoria Co., Texas "Koliba" prospect and plans to commence drilling operations in the early part of 2010. The Company, through its wholly owned subsidiary, Penasco Petroleum, Inc., will retain a 25% carried interest to casing point. The combined leased acreage (Koliba-Linville) gives the Company a total of 143 acres covering a known anticlinal structure (target) with offsetting production.
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-Linville leases. The Company plans to drill a direct offset to the Murphy Baxter, Koliba #1 well from the 5880' (target) zone. The Company plans to drill the offset well to a total depth of 6880 feet.
Company Vice President 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, "Progressing the Koliba into the drilling stage as our first in-house developed prospect is an exciting step for Strategic American Oil. It demonstrates we can execute our business model of finding, acquiring, and bringing in working interest partners to what we believe are low risk/high reward development projects. As our Chairman, Mr. Reneau, has previously stated, the Koliba Prospect offers a relatively low risk offset development well in an area we have experience in with our nearby producing Welder (Barge Canal) lease."
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