Holloman updated on the continued progress of its Cooper Basin exploration efforts. Despite the negative impact of a rare 100 year flood event, Holloman's Cooper Basin neighbors have announced aggressive drilling plans. During June and July 2010, Victoria Petroleum N.L. and Drillsearch Energy Ltd. announced their intention to drill up to 15 new wells on the Cooper Basin's western margin oil permits. Holloman also continues to make significant progress in its Cooper Basin exploration, including the pursuit of possible opportunistic acquisitions in the area.
Heavy rains beginning in February 2010 created wide scale flooding in the Cooper Basin. The inaccessibility of roads and facilities has resulted in a partial curtailment of Cooper Basin oil production and a general contraction of exploration activities. Flood waters have begun to recede, but exploration within substantial areas of the basin remains temporarily impractical. Holloman believes the results and timing of its current joint venture negotiations have been affected by the magnitude of the flooding.
Consistent with its 2010 exploration plan, Holloman has completed processing more than 666 km (414 miles) of 2D seismic data. This data covers a significant portion of Holloman's PEL 112 and PEL 444 licenses. The Company understands that the receding of the flood waters will likely result in access to PEL112 occurring before access to PEL 444. Holloman continues the necessary steps to obtain "Work Area Clearances" and acquire additional targeted 3D and 2D seismic data on these concessions.
"Our positive assessment of the Cooper Basin remains unchanged," stated Mark Stevenson, CEO of Holloman Energy. "While flood delays have temporarily dampened potential joint venture enthusiasm, the underlying asset value of our 1.125 million acres remains high. We are seeking the right partner under the right terms. In fact, under the current circumstances, we are motivated to pursue the acquisition of additional Cooper Basin acreage."
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