Brenham Buys Producing Acreage In Galveston County

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Description

Purchased a producing 394-acre oil and gas lease in Galveston County.

Brenham Oil & Gas Corp. (OTCBB: BRHM) purchased a producing 394 acre oil and gas lease in Galveston County, Texas.

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.

Based on existing geological and engineering reports, 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 its future drilling and development of the area, said Bryant Mook, Brenham president, in the release.

The conclusions of an internal reserve study of the 394 acre lease purchased by Brenham indicate proved undeveloped undiscounted revenues of some US $83 million and discounted NPV of 10% valued at some US $38 million. Possible reserves undiscounted valued at some US $372 million and discounted NPV of 10% valued at some US $160 million. The total of the proved undeveloped and probable reserves, discounted at NPV 10% for a total of some US $198 million.

Brenham Oil & Gas Corp. is an independent oil and gas company engaged in the acquisition of petroleum resources. The company is based in Kemah, Texas, and is a subsidiary of American International Industries Inc. (OTC: AMIN).