Strategic American Oil to Acquire Texas Assets

Strategic American Oil is to acquire an unnamed private Texas oil and gas company, which owns and operates producing oil and natural gas properties and related facilities in Galveston Bay, Texas, US.

The Texas company’s production averaged 2.3 million cubic feet of natural gas equivalent per day, or 378 barrels of oil equivalent per day, for the five months ending December 2010.

The estimated net proved reserves as of 1 October 2010 is 3.6 million barrels of oil equivalent, or 21.9 billion cubic feet of natural gas equivalent, of which 27% is represented by proved developed producing and shut-in categories.

Natural gas represents 69% of the estimated total proved reserves.

The transaction is expected to be closed by the end of January 2011.