Energy Independence

The Natural Gas Solution

Strategic American Oil Corporation understands the need for the U.S. to develop its domestic energy resources for its own energy needs.  The future development of natural gas is a significant part of this “energy independence” initiative.  T. Boone Pickens recently stated, “We (the United States) have more gas than any other country in the world.”  This leads to the obvious question, “Why does the United States continue to rely on foreign oil when its own resources can fulfill its energy needs?”  The Gulf spill has changed and will likely continue to change the way the public looks at the risks and consequences of offshore drilling.  This paradigm-shifting event has people questioning the U.S.’s energy policies much the same way the attacks on 9-11 had people questioning the U.S.’s security policies.  Mr. Pickens further stated, “No energy plan will be complete unless it focuses on transportation, which is 70% of our foreign oil problem.  I’m for American resources, and natural gas [used] in heavy duty fleet applications leads the way using a clean, abundant, and domestic resource to replace dirty foreign oil.” 

Strategic American Oil is committed to developing natural gas resources within U.S. borders and is working to take the next step by developing its large Kenedy 3D Seismic prospect.  The Kenedy prospect is a 1,043 acres (m/l) Frio Sand (gas) target in South Texas identified through its acquired 303 sq. mile 3D seismic database.  The Company’s exploration team believes the multiple Frio sands identified in the seismic profile could contain significant gas and condensate reserves and proposes to drill one to two wells to test the Frio zones. 

Bob Bennett, the Company's contract seismic expert who has more than 20 economic oil and gas discoveries to his name, said of the prospect, "With more than 2 decades of experience exploring for oil and gas in South Texas with 3D seismic, I have never had the opportunity to discover or participate in a Frio structure such as this. These structures are usually cherry-picked by the major oil companies as drilling locations of choice. I believe this prospect has the potential to be a substantial new field discovery along this highly active trend."

The Frio formation, a sandstone interval, is one of the most prolific oil/gas producers in South Texas.  The Company’s prospect lies directly on trend with many other major gas/condensate producing fields—according to Texas Railroad Commission records, many of them accumulating production exceeding 200BCF (200 million MCF) and 300MBO. In general, these fields possess numerous faults creating fractured “pools” of gas and oil.  A desirable general characteristic of Frio zones is the relatively higher permeability and porosity leading to higher flow rates. Additionally, with the multiple zones to be encountered the Company expects to achieve these higher flow rates and significant oil and gas reserves.