Holloman Energy Corporation
OTC Bulletin Board : HENC

Holloman Energy Corporation

October 17, 2007 09:44 ET

Holloman Announces Spud Date for Cooper "Block 112"

CALGARY, ALBERTA--(Marketwire - Oct. 17, 2007) - Holloman Energy Corporation ("Holloman") (OTCBB:HENC) has scheduled Hunt Oil's "Hunt 3" drill rig for an anticipated spud date of November 15th, 2007.

Holloman Energy Corporation retains the oil & gas exploration permits PEL's 108, 109, & 112, located in South Australia in the prolific Cooper/Eromanga Basin. Holloman Energy Corporation (the Operator) has agreed to drill and complete three exploratory wells in the northern section of PEL 112. Site locations have been predetermined and road access is now completed. PEL 112 covers approximately 818,904 gross acres, and has never been drilled. All the wells are approximately 6,000 feet deep and cost around $1.5 million dollars each to drill and complete. The Company's is relying on its recent $2 million seismic shoot and subsequent interpretation for oil well location.

The new seismic survey and interpretation on PL 112 has discovered two large seismograph highs as well as 24 smaller ones. The 2 large seismograph highs are called C-23 & C-26, which cover a combined area of approx. 5,534 acres with excellent closure.

Holloman's participation in the Cooper Basin began in 2003 with the acquisition of PEL 108, 109 and 112 with a combined gross acreage of 1,325,715.

Recent drilling activity in the area has intensified; seven new wells adjoining PEL 112 to the North and East have been completed with an 86% success ratio. The latest successful well north of Holloman's PEL 112 is the Sellicks-3. The Sellicks-3 encountered 2 zones of oil shows in the lowermost sand of the Patchawarra Formation over the interval 2,153 meters to 2,155 meters. DST #2 Recovered 85 Bbls oil over a 90-minute flow period or approximately 1,365 bopd in the upper zone. To the east of PEL 112, the Tantanna Oil Field, has produced approximately 7,340,646 barrels of oil from twelve (12) wells, at today's crude prices that equals approximately $513 Million or $42 Million per well. The Seismic line 84-XAB shows a possible look-alike structure on Holloman's PEL 112 similar to the Tantana Oil Field.

ABOUT HOLLOMAN ENERGY CORPORATION

Holloman Energy Corporation is a leading independent oil and gas exploration and production company. Holloman operations are focused primarily in Australia and Canada. Holloman's three major oil and gas properties in Australia are: Gippsland Basin, Cooper Basin, and Barrow Sub Basin. In Canada, Holloman has accumulated an impressive 1.2 million acres in the prolific oil and gas region of Alberta - Saskatchewan basin for development. The area is prone to both oil and gas in multiple zones.

Holloman has spent over three years in researching and performing geophysical acquisition over the Australian concessions. Each of these basins include several major discoveries in various stages of development since the late 1960's, and have yielded billions of barrels of production. Several of the world's largest oil and gas companies are producing, developing and exploring adjacent to Holloman's oil and gas concessions.

Holloman is partnering with industry leaders, to develop prospective reserves in the Canadian prairies proving our expertise and growth model.

This press release contains statements, which may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Holloman Energy Corporation, and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

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