The company has retained a 16.33% carried working interest to casing point, 25% working interest after casing point. The combined leased acreage (Koliba-Linville) consists of 143 acres covering an anticipated anticlinal structure (target) offsetting production.
The Koliba prospect lies in the North McFaddin Field, which, according to Texas Railroad Commission maps and records, hosts 87 productive oil and gas zones. The company has found three potential target zones at 5,880ft, 5,350ft and 4,930ft under the Koliba lease.
The Koliba prospect was evaluated by means of surrounding well control and lowering risk to the geologic interpretation. A minimum of 50 surrounding well bores and their associated well logs were used in developing the geologic interpretation. The prospect interpretation is both a structural and stratigraphic trap that includes a four-way closure.
Jeremy Driver, president and CEO of Strategic American Oil, said: “The start of drilling of the Koliba prospect is a great milestone for the company. The Koliba is our first fully in-house developed prospect, which demonstrates we can execute our business plan of finding, acquiring and developing what we believe are low risk/high reward development projects utilizing a carried-interest model.”
