On Wednesday August 17, 2011, Strategic American Oil Corporation (OTC:SGCA), a budding oil and natural gas exploration and production company, based in Texas, Louisiana, and Illinois, announced its assignation of a non-binding letter of intent (LOI) in order to acquire SPE Navigation I, LLC, a private Texas based oil and gas company.
As per the predetermined terms and conditions of the LOI, approved by the Company’s independent Board members, which is subject to diverse conditions to closing, the company has agreed to issue to the shareholders of SPE an aggregate of 95 million restricted common shares of the Company in connection to the accomplishment of the said acquisition.
With the respective acquisition, the existing material assets of SPE will be inherited by the company, which comprises of certain oil and gas working interest, summing up to one third of the working interest of the Company and four producing oil and gas fields located in Galveston Bay, Texas, along with one million shares of Hyper dynamics Corporation.
Jeremy G. Driver, CEO, acknowledged that with the acquisition of SPE, which is currently managed by his father-in-law, Michael E. Watts, the company’s balance sheet will be boosted up with the addition of valuable cash-producing assets, thereby enhancing the company’s growth. He further stated that the transaction taking place within the family will be exhibiting to the shareholders and investors, his and his family’s dedication towards the progress of Strategic American Oil.
The Acquisition is expected to be completed within the next 30 days; it is subject to the negotiation and execution of a definitive purchase agreement, as well as customary closing conditions, to be delivered by an independent expert.
Shares of SGCA climbed 8% to $0.135 with over 762K shares exchanged hands.
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