Brenham Oil & Gas Corp. Acquires a Producing 394 Acre Oil & Gas Lease in the Gillock, Dickinson and Eagle Bay Field, Galveston
April 04 2013 - 9:38AM
Brenham Oil & Gas Corp., (OTCBB:BRHM) ("Brenham"), a subsidiary
of American International Industries, Inc., (OTCBB:AMIN)
("American"), announced that it purchased a producing 394 acre oil
and gas lease. Mr. Bryant Mook, President of Brenham, who holds a
Master of Engineering degree in Petroleum Engineering from the
Colorado School of Mines and a Bachelor of Science degree geology
from Southern Methodist University, stated that the acquired
acreage is located just west of Galveston Bay, Galveston County, 35
miles southeast of Houston and 15 miles northwest of
Galveston. Moreover the acreage is adjacent to and one
location away from the Gillock, East Segment Field operated by Alta
Mesa Services, and about two miles west of the Eagle Bay Field
operated by Sandridge Onshore, LLC and Transtexas Gas Corp.
Mr. Mook further stated that after studying the lease and its
location, in addition to existing geological and engineering
reports, came to the conclusion that the Dickinson-Gillock-Eagle
Bay-South Gillock Fields are segments of a large, complexly faulted
deep seated salt dome. Developments to date have shown the
uplift to be about 8.3 miles in length and about 6.5 miles in
width. The productive closure is about 2,100 feet and the
productive area is more than 14,000 acres. Brenham is in the
process of purchasing 3D seismic data over the area of its
acreage. This data will be integrated into our future drilling
and development of the area.
The conclusions of an internal reserve study of the 394 acre
lease purchased by Brenham indicate proved undeveloped (PUD)
undiscounted revenues of $82,724,800 and discounted NPV of 10%
valued at $38,259,500. Possible reserves (POSS) undiscounted
valued at $372,043,700 and discounted NPV of 10% valued at
$160,050,500. The total of the proved undeveloped and probable
reserves, discounted at NPV 10% for a total of $198,310,000.
The greater Gillock Field has produced more than 116,000,000
Barrels of Oil since its discovery in the 1930's and more than
281,226,688 MCF Gas since 1963, and Dickinson Field has produced
more than 22,200,000 Barrels of Oil and 78,289,956 MCF Gas since
1956 to date from numerous continuous and semi-continuous mostly
Frio age sandstone reservoirs. Additional reserves from the
Vicksburg formation are also present and have produced in nearby
wells. Drilling and drainage will be on standard 40 acre
spacing currently present in the field except for the Vicksburg
which may be 160 acres or more.
For information regarding risk factors associated with Brenham,
please see our 2012 10-K filing.
For more information regarding Brenham please visit our website:
http://www.brenhamoil.com/
Brenham Oil & Gas Corp. is an independent oil and gas
company engaged in the acquisition of petroleum resources. The
Company's focus is on coupling United States development/production
assets with international exploration in locations such as
Sub-Saharan Africa. Brenham's management team includes
experienced professionals from major oil and gas companies.
Forward-Looking Statements:
This press release may contain forward-looking statements,
including information about management's view of the Company's
future expectations, plans and prospects, within the safe harbor
provisions under The Private Securities Litigation Reform Act of
1995 (the "Act"). All statements other than statements of
historical information provided herein may be deemed to be
forward-looking statements. Without limiting the foregoing, the
words "believes", "anticipates", "plans", "expects" and similar
expressions are intended to identify forward-looking statements.
Factors that could cause actual results to differ materially from
those that we may anticipate reflected by our subsidiaries'
operations include without limitations, growth in the energy sector
and in the oil and gas service industry, increased levels of
competition, new products and technology changes, and the market
for pipes, the rules of regulatory authorities and risks associated
with any potential acquisitions. Readers are cautioned not to place
undue reliance on these forward-looking statements, which reflect
management's analysis, judgment, belief or expectation only as of
the date hereof. Finally, the Company undertakes no obligation
to update these statements after the date of this release, except
as required by law, and also takes no obligation to update or
correct information prepared by third parties that are not paid for
by the Company.
CONTACT: Investor Relations:
Rebekah Ruthstrom
Tel: 281-334-9479
email: amin@americanii.com
American International I... (CE) (USOTC:AMIN)
Historical Stock Chart
From Nov 2024 to Dec 2024
American International I... (CE) (USOTC:AMIN)
Historical Stock Chart
From Dec 2023 to Dec 2024