HOUSTON, Aug. 12, 2010 (GLOBE NEWSWIRE) -- Holloman Energy Corporation (OTCBB:HENC) updates its shareholders on the continued progress of its Cooper Basin exploration efforts. Despite the negative impact of a rare 100 year flood event, Holloman's Cooper Basin neighbors have announced aggressive drilling plans. During June and July 2010, Victoria Petroleum N.L. and Drillsearch Energy Ltd. announced their intention to drill up to 15 new wells on the Cooper Basin's western margin oil permits. Holloman also continues to make significant progress in its Cooper Basin exploration, including the pursuit of possible opportunistic acquisitions in the area.
Heavy rains beginning in February 2010 created wide scale flooding in the Cooper Basin. The inaccessibility of roads and facilities has resulted in a partial curtailment of Cooper Basin oil production and a general contraction of exploration activities. Flood waters have begun to recede, but exploration within substantial areas of the basin remains temporarily impractical. Holloman believes the results and timing of its current joint venture negotiations have been affected by the magnitude of the flooding.
Consistent with its 2010 exploration plan, Holloman has completed processing more than 666 km (414 miles) of 2D seismic data. This data covers a significant portion of Holloman's PEL 112 and PEL 444 licenses. The Company understands that the receding of the flood waters will likely result in access to PEL112 occurring before access to PEL 444. Holloman continues the necessary steps to obtain "Work Area Clearances" and acquire additional targeted 3D and 2D seismic data on these concessions.
"Our positive assessment of the Cooper Basin remains unchanged," stated Mark Stevenson, CEO of Holloman Energy. "While flood delays have temporarily dampened potential joint venture enthusiasm, the underlying asset value of our 1.125 million acres remains high. We are seeking the right partner under the right terms. In fact, under the current circumstances, we are motivated to pursue the acquisition of additional Cooper Basin acreage."
As reported earlier, studies conducted by ISIS Petroleum Consultants Pty. Ltd. ("Isis") of Australia, an independent and internationally recognized petroleum geological, geophysical and engineering firm, identified 38 leads on PEL 112 alone. Five of the leads were targeted for evaluation and were determined to have mean unrisked in-place prospective resources ranging from 56 MMbbl to 70 MMbbl for a 100% working interest. The mean unrisked recoverable prospective resource potential for the five leads range from 19 MMbbl to 24 MMbbl and the total mean unrisked recoverable prospective resource potential for the five leads is greater than 100 MMbbl.
For more about the impact of flooding in the Cooper Basin follow this link http://www.google.com/search?q=cooper+basin+flooding&rls=com. microsoft:en-us&ie=UTF-8&oe=UTF-8&startIndex=&startPage=1)
About Holloman Energy
Holloman Energy Corporation is focused on exploring and producing oil in Australia's Cooper Basin. Holloman's Cooper Basin leases include interests in PEL 112 and PEL 444 which comprise 4,544 Sq km (1.125 million acres) in the southwest and northwest sectors of Australia's prolific Cooper – Eromanga Basin.
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 publically update 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.
Cautionary Note to U.S. Investors: The United States Securities and Exchange Commission (the "SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "mean unrisked in-place prospective resource" and "mean unrisked recoverable prospective resource", that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosures in our Form 10K/A, Form 10Q and other filings with the SEC available from us at 333 North Sam Houston Parkway East, Suite 600, Houston, Texas 77060. You can also obtain this information from the SEC on-line at www.sec.gov or by calling 1-800-SEC-0330.
ON BEHALF OF THE BOARD OF DIRECTORS
Holloman Energy Corporation