Brenham Oil & Gas has acquired an oil field, which consists of 20 oil wells, and is located on around 700 A land in the Texas-located Permian Basin next to Abilene.
The President of Brenham has commented that the company is expecting to finalize the oil well lease assignments at the earliest and to start the development process prior to the end of 2011, having an aim of utilizing the field for production in 2012.
The Vice President of the company has stated that the Abilene field has around 1.4 M barrels of oil as calculated probable reserves. The net current value of this oil field purchase is around $20 M.
Also, the President has said that the acquisition of this Permian Basin oil field is the first acquisition that the company has completed. This purchase forms a section of their business model that involves first buying oil development and production assets portfolio in the U.S. and then extending the portfolio by purchasing international exploration assets, having a primary focus on Africa. Formerly, the company has declared about signing a deal to acquire a Permian oil field of 5,000 acre near Midland in Texas and the process of due diligence on the huge acquisition is ongoing.
Source: http://www.brenhamoil.com/