Holloman Energy has signed a Memorandum of Understanding (MoU) to acquire additional Australian-based exploration rights and other assets.
As per the agreement, Holloman Energy may acquire application rights in up to seven exploration permits targeting 1.65 million acres with coal-seam gas potential, together with certain drilling rigs and associated drilling equipment from an affiliated company.
The Queensland-based exploration permits under application target Permian and Jurassic coals that cover more than 1,783 sub-blocks (6,666sq km / 1,647,070 acres) largely in the Adavale Basin area.
If the acquisition is finalized, the company will undertake additional studies to determine whether economics support its pursuit of an authority To prospect for coal-seam gas resources.
The inventory of drilling assets includes three drill rigs, a vehicle fleet and certain camp support equipment.