October 19, 2009 (FinancialWire) — Strategic American Oil Corp. (OTCBB: SGCA) (Current Market Cap: $10.82 Mil.) has completed a private placement financing involving the sale of 12.5 million units of the company to 30 purchasers at a subscription price of $0.20 per unit, for gross proceeds of $2.5 million.

The company sold 10.89 million units for cash, yielding $2.178 million, and 1.61 million units were sold in settlement of debt in the aggregate amount of $322,000.

Strategic will see net cash proceeds of $2,040,250, which it plans to use for working capital purposes.

Each unit is comprised of one common share and one transferable common stock purchase warrant, with each such warrant being exercisable for one additional common share of the company at an exercise price of $0.35 per warrant share for a period of five years from the closing, or until October 15, 2014.

Corpus Christie, Texas-based Strategic American Oil is an exploration and production company with operations in Texas, Oklahoma, Louisiana and Illinois.

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