Strategic American Oil Corporation (OTC:SGCA) hit the gain at last. After a few days of losses, yesterday the stock jumped up 
12.50% and its traded volume substantially increased.
In fact, during the past days SGCA released some positive news on its business, though it failed to cut off the loss. While yesterday the gain became reality at no particular reason.
Strategic American Oil Corp. is a growth stage oil and natural gas exploration and production company with operations in Texas, Louisiana, and Illinois. The last announcement by the company came up on Feb 13, when SGCA announced that water injection has commenced in its Markham City North Water Flood Project located in Jefferson and Wayne Counties Illinois.
As part of the agreement, Strategic retained a 10% carried working interest and will back-in for an additional 15% upon cost recovery by Core of its initial investment. Nevertheless, the revenues are only projections yet.
Lately, SGCA has been quite positive about its operations, however, its latest 10-Q did not look that optimistic. As of October 31, 2011 the company’s cash and cash equivalents have jumped up, though its liabilities remained uncovered. At the same time, both the net loss and the accumulated deficit of Strategic also flew up.[BANNER]
The company’s management believes that their working capital is sufficient to enable them to pursue their lease operating costs, to pay their general and administrative expenses, and to pursue their plan of operations over the next 12 months.
Though, various conditions outside of the team’s control may detract from their ability to raise the capital needed to execute their plan of operations, including the price of oil as well as the overall market conditions in the international and local economies.
Any of these conditions could have a material impact on the company’s ability to raise financing and, as a result, upon its short-term or long-term liquidity.
