HOUSTON, March 5, 2008 (PRIME NEWSWIRE) -- Holloman Energy Corporation (OTCBB:HENC) (the "Company" or "Holloman") is pleased to announce the March 2, 2008 commencement of drilling on its first well in the South Australian, Cooper/Eromanga Basin.
Holloman's "Pecos-1" well is located on Petroleum Exploration Lease 112 ("PEL 112"), on the C-26 structure covering approximately 3,459 acres with approximately 338 foot of closure. The Pecos-1 will be drilled to approximately 6,000 feet and is expected to take approximately 12-14 days to reach total depth. The primary payzone of the Pecos-1 well is the Hutton Sandstone, but the Company believes five (5) additional payzones may occur in the Cadna Owie, Namur, Birkhead, Murta and Poolawana sandstones.
"In light of the significant oil discoveries that adjoin PEL 112 to the North and to the East," stated Holloman Chairman Mark Stevenson, "we are thinking positively about the prospects for Pecos-1."
The Company began drilling the Pecos-1 under the terms of a recently announced farm in agreement with Holloman Oil & Gas Limited ("HOG"). Under that agreement, the Company will receive a 2% overriding royalty on gross revenues generated by HOG's interest in that well. In addition, the Company enjoys the right to participate in all future drilling on PEL 112 up to a maximum of 50% of HOG's working interest.
Forward-Looking Statements:
This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the Company believes or anticipates will or may occur in the future are 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 factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which the Company has little or no control. The Company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the Company's recent filings with the SEC.
ON BEHALF OF THE BOARD OF DIRECTORS Holloman Energy Corporation