The exploration licences PEL 112 of 2,196 km2 and PEL 444 of 2,358 km2 are located on the western flank of the Cooper Basin.

Australian-Canadian Oil Royalties and a US based resident Eli Sakhai each holding 16.6665% interest in the two licences were made parties of the definitive agreement by Terra Nova.

Canada based investment firm Macquarie Private Wealth has acted as a commercially reasonable efforts agency basis for the company and has closed private placement of C$10.6m ($10.4m).

The company is expecting to close the first part of the financing after signing of the definitive agreement.

Holloman Energy is an oil and gas exploration company.