CORPUS CHRISTI, Texas, July 21 /PRNewswire-FirstCall/ -- Strategic American Oil Corporation (OTC Bulletin Board: SGCA);( the "Company") is pleased to announce that it has identified 2 Devonian-Silurian aged Pinnacle Reef (oil) prospects in the Illinois Basin through the research of records from the Illinois State Geological Survey. The prospects are located in Fayette and Macon Counties at depths of between 2000' and 3500' The Company plans to lease approximately 600 acres over the identified prospects and proposes to drill and/or generate 3D seismic to evaluate the prospective subsurface geology. The Company's exploration team believes the targets identified could contain significant oil reserves (detailed geologic information will be released upon completion of leasing).

Company President and CEO, Randall Reneau, stated, "The identification of these prospects furthers our exploration plans for Illinois. Our team in Illinois, lead by Chief Geologist Jim Thomas who has over 35 years experience working in the Illinois Basin, is continuing to make progress in finding and leasing new attractive targets, furthering our business model of developing prospects in-house to build the Company's oil reserves and increase production. The Company will continue to review and evaluate data from the Illinois State Geological Survey to identify new drilling prospects with the goal of making new oil field discoveries."

Pinnacle Reefs are isolated biohermal structures. These reefs are relatively shallow in Illinois, averaging between 2,000 to 3,500 feet in depth, allowing for low cost drilling programs. The Company's geologists have made extensive use of Illinois State historical coal drilling records; these records show coal seams overlaying pinnacle reefs that are marked as thinning and/or are structurally higher than expected making historic coal drilling logs extremely valuable in the search for pinnacle reefs. Due to the shallow depths of these structures, the Company will rely heavily on subsurface structural mapping to delineate possible reef targets. Targets below 3000' may be cost effective to utilize 3D seismic surveys prior to drilling. Each reef prospect will be evaluated as to the most cost effective exploration program as targets below 3000' may be cost effective to utilize 3D seismic surveys prior to drilling. According to the Illinois Geological Survey, successfully drilled and producing pinnacle reefs in the Basin produced an average of 3,200,000 barrels of oil. With today's advances in subsurface mapping and advanced 3D techniques, Pinnacle Reefs have become a prospective target for new oil field discoveries in the Illinois Basin.