Holloman Energy Corporation reported that the company and its Joint Venture partners plan to continue to explore Petroleum Exploration Licenses (PEL) 112 and 444 in Cooper Basin, South Australia. PEL 112 is in its third year of its five year renewal program ending in 2018 and a recently approved 5 year renewal program ending in 2020 for PEL 444. The obligations in both of these programs require additional geological and geophysical studies with one well to be drilled in the final year of each of the programs.
Due to the termination of the Farm-In agreement with Terra Nova, HENC ultimately incurred 74.1667 percent of the cost to drill the Baikal-1 well. HENC had the backing of a large subsidiary of Holloman Corporation, its major shareholder, to meet its drilling obligations and future exploration efforts.
The overall prospectivity of the licenses remains largely unchanged by the recent drilling of Baikal-1. The Wingman 3D seismic study detailed several prospects, and although the Baikal-1 well did not encounter any hydrocarbons, drilling in the adjacent areas with similar formations as shown on the Wingman 3D seismic have been successful. Further assessment and interpretation of the seismic data to rank the potential targets that have been identified and an increased involvement in operational activities will help reduce uncertainty and will enable us to be prepared when the oil markets become more favorable.
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