Stock price of Strategic American Oil Corporation (OTC:SGCA) has been quite unstable over the past days. After a number of 
hesitations, yesterday SGCA jumped up again by soaring 4.59%, on a traded volume exceeding 974 thousand shares.
However, this time the climb has a reasonable explanation and it is the latest news by the company. Just yesterday, SAC reported that it has increased its proved reserves of oil and natural gas to approximately $77.7 million discounted at 10 percent in net proved reserves for the company.
According to Jeremy G. Driver, President and CEO of SAC, due to the recent acquisition of Galveston Bay Energy the company’s revenues and cash flow have substantially increased.
Being published, the positive statements have immediately pumped up SGCA stock price. Though, it is still not certain how long the up move will resist.[BANNER]
Strategic American Oil Corp. is a growth stage oil and natural gas exploration and production company with operations in Texas, Louisiana, and Illinois. Regarding the company’s latest 10-Q report, things look rather complicated.
As of April 30, SAC had more assets than liabilities in its balance, though its accumulated deficit got over $21 million. Revenues have notably increased, however, net loss exceeded $8 million. As a result, the company’s ability to continue as a going concern is dependent on raising additional capital to fund ongoing activities and ultimately on generating future profitable operations.
Apparently, the positive press releases don’t give a real idea of what is happening with SAC. In the meantime, the company makes new acquisitions, but is unable to cover the losses.
