The agreement requires Core to begin the development work of the field on or before 30 June 2011.
Strategic American Oil has retained certain carried working interest in the field which, after development activities have commenced, will eventually increase to at least 25%.
The primary target at this time is the McClosky formation, which has been successfully water-flooded in several other Illinois Basin fields.
This field originally produced approximately 1.6 million barrels of oil and it is estimated that there could be as much or more oil remaining to be recovered.
Strategic American Oil is an oil and natural gas exploration and production company with primary operations in Texas, as well as Louisiana, and Illinois.
