HOUSTON and KEMAH, Texas, April 4, 2013 (GLOBE NEWSWIRE) -- Brenham Oil & Gas Corp., (OTCBB:BRHM) ("Brenham"), a subsidiary of American International Industries, Inc., (OTCBB:AMIN) ("American"), announced that it purchased a producing 394 acre oil and gas lease. Mr. Bryant Mook, President of Brenham, who holds a Master of Engineering degree in Petroleum Engineering from the Colorado School of Mines and a Bachelor of Science degree geology from Southern Methodist University, stated that the acquired acreage is located just west of Galveston Bay, Galveston County, 35 miles southeast of Houston and 15 miles northwest of Galveston. Moreover the acreage is adjacent to and one location away from the Gillock, East Segment Field operated by Alta Mesa Services, and about two miles west of the Eagle Bay Field operated by Sandridge Onshore, LLC and Transtexas Gas Corp.
Mr. Mook further stated that after studying the lease and its location, in addition to existing geological and engineering reports, came to the conclusion that the Dickinson-Gillock-Eagle Bay-South Gillock Fields are segments of a large, complexly faulted deep seated salt dome. Developments to date have shown the uplift to be about 8.3 miles in length and about 6.5 miles in width. The productive closure is about 2,100 feet and the productive area is more than 14,000 acres. Brenham is in the process of purchasing 3D seismic data over the area of its acreage. This data will be integrated into our future drilling and development of the area.
The conclusions of an internal reserve study of the 394 acre lease purchased by Brenham indicate proved undeveloped (PUD) undiscounted revenues of $82,724,800 and discounted NPV of 10% valued at $38,259,500. Possible reserves (POSS) undiscounted valued at $372,043,700 and discounted NPV of 10% valued at $160,050,500. The total of the proved undeveloped and probable reserves, discounted at NPV 10% for a total of $198,310,000.