2010-01-07-2009-10-28-2009-10-28

Acquired 160-acre Dixon lease in Delhi South Field in Franklin Parish, LA.

Strategic American Oil Corp., Corpus Christi, Texas, (OTCBB: SGCA) has completed leasing of more than 93% of the mineral interest in the 160-acre Dixon Lease in Delhi South Field in Franklin Parish, Louisiana, from undisclosed sellers for an undisclosed price. The Dixon lease contains two temporarily abandoned oil wells at approximately 3,400 feet along with two possible offset drilling locations and a saltwater disposal well. The company and its operating partner, Tradestar Energy Inc., plan to re-work and re-equip the existing wells and re-work and re-permit the saltwater disposal well. Tradestar can earn a 50% working interest in the leasehold by funding the cost of re-working and re-equipping the two existing wells along with the saltwater disposal well. The Dixon lease was acquired by Strategic subsidiary Penasco Petroleum Inc.