HOUSTON, April 20, 2011 (GLOBE NEWSWIRE) -- Holloman Energy Corporation (OTCBB:HENC) updates its shareholders and other interested parties on the status of exploration undertaken on neighboring oil and gas license PEL 92. Both PEL 92 and Holloman's PEL 112 are located in the Western Flank Oil Play in Australia's Cooper/Eromanga basin. Holloman's management believes both licenses share similar oil migration mechanics and is encouraged by the drilling results on the neighboring license.
During February 2011, Beach Energy announced commencement of an 11 well drill program on PEL 92 which directly abuts the border of Holloman's PEL 112 on the north-easternmost corner of its north-western panhandle. During the period from February 23, 2011 to April 13, 2011 Beach drilled 3 wells (Parsons-3, Parsons-4 and Butlers-2) on PEL 92, all of which were successful. The wells encountered oil columns ranging from 9 to 5 meters (29.5 to 16.4 feet) in the Namur sandstone. The Parsons-3 well flowed at a rate of more than 5,000 barrels/day of oil during cleanup with no water. Beach expects the additional production from the Parsons-3 and Parsons-4 wells will increase its daily production from PEL 92 to around 6,000 barrels/day (gross). In addition, the large step-out on the Butlers-2 well is expected to result in an upgrade of recoverable oil reserves from the Butlers Field of approximately 1.5 million barrels (gross).
"Beach's drilling results on PEL 92 support our confidence in PEL 112", stated Mark Stevenson, Holloman CEO. "We will continue to closely monitor the results of their efforts while we pursue our upcoming seismic acquisitions."
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