HOUSTON, Jan. 27, 2011 (GLOBE NEWSWIRE) -- Holloman Energy Corporation (OTCBB:HENC) updates its shareholders and other interested parties regarding its operations and the recent extraordinary rain and flooding in Australia. Although recent flooding has been largely focused east of Holloman's South Australian holdings, locally heavy rains continued to hit the Cooper Basin during the second half of 2010. As a result, road closings and access limitations continue to hamper progress on many fronts. There is some likelihood that additional rains and flooding could recur in February 2011.
Despite the rains, Holloman joins other Cooper Basin explorers in aggressive action to regain access to their properties. In news released in late December 2010, Beach Energy announced it has completed construction of upgraded roads and a bridge to provide vehicle access to field and exploration operations on Cooper's Western Flank. The 30 meter bridge spans the main Cooper channel between the Christies and Callawonga oil fields. Together with upgraded and rerouted roads, the bridge will provide access for drilling rigs to PEL 92 which directly abuts the border of Holloman's PEL 112 on the north-easternmost corner of its north-western panhandle. Holloman intends to pursue negotiations to piggyback PEL 112 work area clearance and seismic acquisition on Beach's upcoming activity.
"Beach's recent announcement of an 11 well drill program on PEL 92 is very good news," stated Mark Stevenson, Holloman's CEO. "We understand that certain of those wells are designed to target structures further to the west, away from the Permian kitchen. If successful, this should result in real value enhancement for our PEL 112 holdings. Regardless, the start-up in their activity provides the first real opportunity to pursue our seismic program since flooding began in February 2010."
Victoria Petroleum, Holloman's neighbor on PEL 444 has also announced aggressive plans to restart its operations. Contingent upon government approvals, Victoria Petroleum intends to build a road to its successful Growler oilfields beginning January 2011. The location and design of this access road should enable a rapid return to operations following any future inundation. Natural water bodies in area of PEL 444, however, are expected to delay access for seismic acquisition for some time. Holloman is pursuing further studies, including satellite reconnaissance, to determine its best strategy to regain land access to PEL 444 at the first opportunity.
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 publicly 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.
ON BEHALF OF THE BOARD OF DIRECTORS
Holloman Energy Corporation
CONTACT: Holloman Energy Corporation Grant Petersen (778) 999-9740