HOUSTON and KEMAH, Texas, April 4, 2013 (GLOBE NEWSWIRE) -- 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.
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: firstname.lastname@example.orgSource:Brenham Oil & Gas Corp.