HOUSTON, May 16, 2008 (PRIME NEWSWIRE) -- Holloman Energy Corporation (OTCBB:HENC) ("HENC") filed first quarter 2008 financial results today. Although HENC did not generate any revenues during the three months ended March 31, 2008, HENC reported a one-time gain of $784,000 on the divestiture of its Canadian assets, resulting in net income of $557,000 ($0.01 per share).
"With the Canadian divesture complete," stated HENC Chairman Mark Stevenson, "we can concentrate on maximizing activity on the 2.3 million acres of concessions we hold in Australia's Cooper/Eromanga, Barrow and Gippsland basins. We are currently engaged in discussions with several companies entertaining drilling participations." Stevenson continued, "With the steep increase in oil price, we expect interest to escalate."
As of March 31, 2008, HENC had total assets of $23.691 million and stockholders equity of $15.574 million. During first quarter 2008, HENC continued to focus it efforts on asset acquisitions and the identification of joint venture relationships. HENC's results are available in detail in its Form 10-Q filed with the U.S. Securities and Exchange Commission on May 15, 2008.
HENC Chief Executive, Grant Petersen stated: "There is always a risk we may not be successful in forming drilling ventures or if formed, those ventures may not result in commercially viable production. I feel however, that our risk is mitigated by the quality of our geophysical and engineering staff and consultants. In each of our lease areas, wells immediately offsetting our acreage have been successfully completed and tested at significant flows. major production has brought in by some of the worlds most notable exploration companies."
About Holloman Energy
HENC is an emerging international oil and gas exploration and development company. Its principal shareholder is Houston-based Holloman Corp. (www.hollomancorp.com). HENC currently holds concessions in excess of 2.3 million acres in Australia. HENC's management believes Australia is a politically stable environment that is pro-hydrocarbon development. Industry estimates set proven reserves of Australian oil at 4 billion bbls though only a small fraction of known potential has been exploited. HENC believes the Australian environment provides the enviable combination of low-risk and strong potential return.
Forward-Looking Statements:
This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which the Company has little or no control. The Company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the Company's recent filings with the SEC.
ON BEHALF OF THE BOARD OF DIRECTORS
Holloman Energy Corporation