Brenham Oil & Gas Corp.
OTCBB and OTCQB:"BRHM"
601 CIEN STREET, SUITE 235, KEMAH, TX 77565-3077
Tel: (281) 334-9479 Fax: (281) 334-9508
www.brenhamoil.com email: email@example.com
BRENHAM OIL & GAS CORP. to acquire Permian basin
oil and gas properties
Houston & Kemah, Texas Ė July 7, 2011, Brenham Oil & Gas Corp., OTCBB: BRHM ("Brenham"), a 54% owned subsidiary of American International Industries, Inc., OTCBB: AMIN ("American"), announced today that it has signed a letter of intent ("LOI") to purchase an operating oil field including approximately 200 existing oil wells situated on 5,000 acres of the Permian Basin located in Midland, Texas for $6,000,000. Scott Gaille, Brenhamís President, stated that "as part of the contemplated transaction, Brenham would commit to an additional $6,000,000 development program for the purpose of substantially increasing the current production of the oil field and evaluating unconventional shale potential."
The LOI provides that Brenham and the current owner would jointly operate the oil field, with Brenham receiving 70% of the working interest income until Brenham receives payback of its total investment, following which Brenhamís and the sellerís working interest income would be 50%-50%. Pursuant to the LOI, Brenhamís technical team would have a 60 day due diligence period in order to evaluate the existing reserve reports, historical statistics, as well as the projected costs for further development operations to enhance production. The closing of this transaction is also subject to Brenham evaluating the terms of financing for this project. The closing is anticipated to occur in September 2011, provided that Brenhamís management satisfactorily concludes its due diligence.
Scott Gaille further stated, "The Permian Basin oil field fits our business model of initially seeking to acquire oil development and production assets in the U.S. Brenhamís business strategy is to acquire a platform of oil development and production fields in the U.S. to establish a production base and then complement those assets with a portfolio of international exploration prospects, with an initial focus on Africa."
For more information regarding Brenham please visit their website: http://www.brenhamoil.com/
This press release may contain forward-looking statements, including information about managementís view of the Companyís future expectations, plans and prospects, within the safe harbor provisions under The Private Securities Litigation Reform Act of 1995 (the "Act"). All statements other than statements of historical information provided herein may be deemed to be forward-looking statements. Without limiting the foregoing, the words "believes", "anticipates", "plans", "expects" and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those that we may anticipate reflected by our subsidiaries' operations include without limitations, growth in the energy sector and in the oil and gas service industry, increased levels of competition, new products and technology changes, and the market for pipes, the rules of regulatory authorities and risks associated with any potential acquisitions. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis, judgment, belief or expectation only as of the date hereof. Finally, the Company undertakes no obligation to update these statements after the date of this release, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.
Investor Relations: Rebekah Ruthstrom Tel: 281-334-9479 email: firstname.lastname@example.org