Holloman Energy announces results of oil reserve study

Holloman Energy Corporation reports the results of an independent petroleum study which increases its probable (P90) reserves in Australia's Cooper Basin by 600%. The study, received by the Company on June 12th, analyzed 10 of 45 drilling leads and concluded undeveloped P90 and mean risked reserves related to those leads were 25.3 MMbbl and 31.6 MMbbl, respectively.

Recent drilling successes by Beach Petroleum, Cooper Energy, and Victoria Petroleum on adjoining leases prompted Holloman Energy's management to undertake a re-examination of its Cooper Basin reserves. The probabilistic reserve study was conducted by ISIS Petroleum Consultants Pty. Ltd. of Australia. The reported increase in reserves results, in largest part, from the likely migration of oil past the Cooper Basin's Permian zero edge resulting in the recognition of the Namur Sandstone as the Company's primary reservoir.

Holloman Energy holds interests in PEL 112 and PEL 444 which comprise 4,544 sq. km (1.125 million acres) in the southwest and northwest sectors of Australia's prolific Cooper - Eromanga Basin. The Company anticipates that seismic acquisition and a 5-well drilling program to begin exploration of the leases will require expenditures in excess of $11,000,000.