Brenham Oil & Gas Corp. is an independent oil and gas company engaged in acquiring hydrocarbon properties. The company’s focus is on two areas – the United States and internationally in locations such as sub-Saharan Africa.
The company announced today that it has signed a letter of intent to purchase for $6 million an operating oil field including approximately 200 existing oil wells situated on 5,000 acres of the Permian Basin located in Midland, Texas. As part of the transaction, Brenham will also commit another $6 million to a development program for the purpose of substantially increasing the current production of the oil field and evaluating the unconventional shale potential.
The letter of intent states that Brenham and the current owner will jointly operate the oil field, with Brenham receiving 70 percent of the working interest income until it receives payback of its total investment. Following that, Brenham and the seller’s working interest income would be split 50% each. The closing of the deal is anticipated to be in September of this year.
Brenham is excited about its move into the Permian Basin which is enjoying a renaissance. The area began producing oil in the 1920s, but a new oil rush is underway there thanks to the new technology the oil industry is using which makes previously unattainable oil economically feasible to obtain.
For additional information on Brenham Oil & Gas, please visit its website at www.brenhamoil.com