Strategic American Oil Corporation has a strong interest in developing oil from primary and secondary recovery in the Illinois Basin for numerous reasons, including:

  • Low lease costs at $10-25/acre
  • Low royalty rate at 12.5 percent
  • Shallow target zones of 2,000 – 4,000 feet

The Illinois Basin is a mature oil producing environment with a production history covering over 100 years. This development history has generated a large database including records for more than 180,000 wells.  Strategic American Oil has identified and acquired working interests in several projects in Illinois and further projects have been identified through these records. The company is currently developing working relationships with well-established oil and gas companies and firmly believes this will reduce its risk and exploration costs, and increase the company’s exposure to new projects, bringing a unique advantage to the company and its shareholders. 

According to ISGS, oil and gas have been commercially produced in Illinois for over 100 years. Existing commercial production comes from more than 52 named pay horizons.  Over 3.2 billion barrels of oil have been produced in Illinois during its production history.  Recent calculations suggest that remaining mobile resources in the Illinois Basin may be as much as 4.1 billion barrels. Thus, large quantities of oil, potentially recoverable using current technology, remain in Illinois oil fields despite a century of development. To date, Strategic American Oil has leased more than 3,500 acres covering numerous prospects in Illinois.  Opportunities for increased production may have been missed due to complex development histories, multiple stacked pays, and commingled production.

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.


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