Dear Shareholders: Since the strategic spinoff from our parent company, Brenham has made progress on its objectives of acquiring lower risk domestic drilling opportunities coupled with higher risk international exploration in Africa. We would like to take a moment to outline the progress we have made and our vision moving forward. We also plan to communicate with our shareholders on a more frequent basis going forward regarding their investment in Brenham.
Bryant Mook, President of Brenham stated, "Brenham is pleased to announce the following achievements and progress toward its strategic objectives":
During the first quarter of 2013, Brenham acquired the 394 acre oil and gas lease which is part of the Gillock Oil Field based in Dickinson, Texas, three miles north of Texas City, Texas. An internal reserve study of the 394 acre lease conducted by our petroleum engineers concluded that the leased field had proved undeveloped (PUD) undiscounted revenues of $73,162,300 and discounted NPV of 10% valued at $33,441,000 and possible reserves (POSS) undiscounted valued at $195,848,900 and discounted NPV of 10% valued at $81,454,100, the 3P reserves discounted at NPV 10% valued at $114,895,200. In order to realize the lease's potential, the Company is preparing a development package that it intends to present to prospective industry and financial partners.
Brenham purchased 4 square miles of 3D seismic data for the purpose of completion of its drilling program in the Gillock Field in Galveston County Texas. A preliminary review of our reprocessed 3D seismic data shows numerous fault traps and amplitude bright spots normally associated with hydrocarbon production at both the Frio and deeper Vicksburg level. Additionally, structural rollover indicative of a hydrocarbon trap is also present in shallower horizons as well. As there are well over 20 pay zones in Gillock Field the possibility of shallower pay would not be a surprise and all of the aforementioned anomalies are being carefully investigated and evaluated by our experienced geophysical team. Brenham expects a final report on this in a few weeks at which time we will finalize our development plan for all anomalies. The 3D seismic data in conjunction with adjacent and nearby production will enable Brenham to pick precise drillable locations in the Frio as well as providing Brenham the opportunity to upgrade the reserve category of the Vicksburg Formation, thereby enhancing the value of the company.
Brenham has successfully acquired a 10% working interest in the Pierce Junction oil field located in Houston, Texas which has production of approximately 30 barrels per day. Presently, Brenham is seeking to acquire additional working interests in the Pierce Junction oil field from the other partners. The Company also is developing a plan to undertake a comprehensive work over program to increase production in the field to approximately 100 barrels per day.
In line with Brenham's corporate vision of petroleum exploration in Africa, in 2012 Brenham signed a 15% production sharing contract for Block Y with the Government of the Republic of Equatorial Guinea. Brenham is negotiating the sale of its subsidiary Brenham Oil and Gas International, LLC for purposes of focusing the Companies' efforts and resources on the Texas assets.
Brenham is continuing to pursue its $6.4 billion claim against ENI and TGS in connection with its "tortious interference" case, which transaction was previously negotiated in a "production sharing agreement" with the country of Togo, Africa. Brenham's claims are currently in the process of being appealed over matters primarily related to whether the Texas court was the appropriate venue for pursuing the claims.
Brenham's primary objective and current focus during the remainder of 2013 and through 2014 will be accessing capital to fund its drilling programs in Texas.
Brenham Oil & Gas Corp. is an independent oil and gas company engaged in the acquisition of petroleum resources. Brenham's team includes experienced professionals from major oil and gas companies.
For more information regarding Brenham please visit our website: http://www.brenhamoil.com/.
This press release may contain forward-looking statements, including information about management's view of the Company's future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the "Act"). All statements other than statements of historical information provided herein may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects" and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those that we may anticipate reflected by our subsidiaries' operations include without limitations, growth in the energy sector and in the oil and gas service industry, increased levels of competition, new products and technology changes, and the market for pipes, the rules of regulatory authorities and risks associated with any potential acquisitions. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.
Investor Relations: Rebekah Ruthstrom Tel: 281-334-9479 email: email@example.com