The company and the current owner will jointly operate the oil field, with Brenham receiving 70% of the working interest income until it receives payback of its total investment, following which the company’s and the seller’s working interest income will be 50%-50%.
Brenham president Scott Gaille said the Permian Basin oil field fits Brenham’s business model of initially seeking to acquire oil development and production assets in the US.
"Brenham’s business strategy is to acquire a platform of oil development and production fields in the US to establish a production base and then complement those assets with a portfolio of international exploration prospects, with an initial focus on Africa," Gaille said.
The closing of this transaction is anticipated to occur in September 2011.
