Brenham Finalizes Acquisition of Tx. Dyess Field
Brenham has completed its acquisition and received full assignment of the leases of the Dyess Oil Field near Abilene, Texas. The Dyess Oil Field leases covering approximately 700 acres with probable reserves of 1.4 million barrels of oil, is delineated by more than two dozen existing wells. Brenham's operating subsidiary, Brenham Operating LLC, will operate the Dyess Oil Field. Brenham Operating LLC received preliminary authorization to operate in Texas from the Railroad Commission of Texas upon the acceptance of its Form P-5 application on September 19, 2011.
Brenham granted the owners of the Dyess Oil Field leases an overriding royalty interest and issued them 2 million shares of Brenham's common stock having a present value of approximately $500,000 in consideration for the acquisition.
Scott Gaille, Brenham's President, stated, "Brenham intends to restart production from selected Dyess wells and undertake water flood pilot programs in early 2012. The Dyess Oil Field acquisition reflects Brenham's continuing strategy of acquiring United States oil development and production as a foundation to be followed by acquisition of exploration rights to oil producing properties internationally, with an initial focus on Africa."