Strategic American Oil has identified a second potential waterflood target in the Illinois Basin. The targeted land position is in a previously producing oil field that could host significant in-place reserves through Waterflood Recovery. By researching the Illinois State Geological Survey, the Company has discovered the oil field previously produced an aggregate of approximately 1.8 million barrels of oil. Nearby waterflood operations in the same zones have yielded recovery rates of 80% of primary production.
Additionally, the Company has been able to expand its 500-acre estimate for the initial Waterflood Target in Illinois to 1,325 acres. SGCA has currently leased a total of 550 acres of this previously producing field. Company Chief Geologist, Jim Thomas, who has approximately 30 years of experience in the Illinois Basin, and a BS and MS from South Illinois University, is heading up the Company's Illinois operations and will review engineering and development plans with Barger Engineering, of Evansville, Indiana. Barger has engineered a number of waterflood projects in Illinois with a long history of success.
Company President and CEO, Jeremy Driver, stated, "This second waterflood project offers the Company another potential low risk long-term production project in a proven waterflood area. The Company is currently evaluating and performing feasibility analysis on this target. Meanwhile, we are designing a pilot waterflood operation for the initial Waterflood Project, which, if proven, would be expanded into commercial operations."
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