Holloman Energy Corporation announced the March 2, 2008 commencement of drilling on its first well in the South Australian, Cooper/Eromanga Basin.
Holloman's Pecos-1 well is located on Petroleum Exploration Lease 112 (PEL 112), on the C-26 structure covering approximately 3,459 acres with approximately 338 foot of closure. The Pecos-1 will be drilled to approximately 6,000 feet and is expected to take approximately 12-14 days to reach total depth. The primary payzone of the Pecos-1 well is the Hutton Sandstone, but the company believes five additional payzones may occur in the Cadna Owie, Namur, Birkhead, Murta and Poolawana sandstones.
"In light of the significant oil discoveries that adjoin PEL 112 to the North and to the East," stated Holloman Chairman Mark Stevenson, "We are thinking positively about the prospects for Pecos-1."
The company began drilling the Pecos-1 under the terms of a recently announced farm in agreement with Holloman Oil & Gas Limited (HOG). Under that agreement, the company will receive a 2% overriding royalty on gross revenues generated by HOG's interest in that well. In addition, the Company enjoys the right to participate in all future drilling on PEL 112 up to a maximum of 50% of HOG's working interest.
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