Exhibit 99.1

Corpus Christi, Texas -Strategic American Oil Corporation (OTCBB: SGCA; the "Company") is pleased to announce that the drilling contract has been executed and drilling preparations have begun for the Koliba No. 3 well, with expectations to commence drilling this month, depending on favorable weather conditions and rig availability.  The Company has retained a 12.5% working interest for the well.  The combined leased acreage (Koliba) consists of 79 acres covering an anticipated anticlinal structure (target) with offsetting production. The Koliba #3 is a direct offset to the Murphy Baxter, Koliba #1 well which produced from the 5,880 feet (target) zone. 

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 identified 3 Frio Sand target zones at 5880', 5350', and 4930' under the Koliba leases. The Company plans to drill a direct offset to the Murphy Baxter, Koliba #1 well which produced from the 5880' (target) zone. 

Company President and CEO, Jeremy Driver, stated, "This is an exciting time for Strategic American Oil as we currently have two projects in South Texas, the Koliba and Kenedy, with drilling operations underway.  Our expectations are that initial drilling results will be finalized for each of these projects in early 2011.  We look forward to seeing the results of these operations." 

Strategic American Oil Corporation (OTC BB: SGCA) is a growth stage oil and natural gas exploration and production company with operations in Texas, Louisiana, and Illinois.  The Company's team of geologists, engineers, and executives leverage 3D seismic data and other proven exploration and production technologies to locate and produce oil and natural gas in new and underexplored areas. The Company seeks accretive acquisitions of production, reserves, or other companies that will provide significant growth potential. Further information can be found on the Company's website at www.strategicamericanoil.com.

Investor Relations:

Investor Awareness, Inc.
Tony Schor or James Foy,
847-945-2222
www.InvestorAwareness.com

Except for the statements of historical fact contained herein, the information presented in this news release constitutes "forward-looking statements" as such term is used in applicable United States and Canadian laws.  These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management.  Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans, "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as "forward-looking statements". Such forward looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the actual results of exploration activities, variations in the underlying assumptions associated with the estimation or realization of mineral resources, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, accidents, labour disputes and other risks of the mining industry including, without limitation, those associated with the environment, delays in obtaining governmental approvals, permits or financing or in the completion of development or construction activities, title disputes or claims limitations on insurance coverage.  Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended.  There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements.  Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release.