Holloman Energy Corporation has completed a definitive farm-out agreement with Terra Nova Minerals Inc. on the exploration of its Australian Cooper Basin holdings (the "Farm-Out"). The Farm-Out, which was made effective May 11, 2012, set out terms by which Terra Nova may earn a 55% working interest in Holloman's PEL 112 and PEL 444 concessions by funding seismic acquisition and a six (6) well drilling program on the properties.
"The execution of the Terra Nova Farm-Out significantly enhances our exploration capacity," stated Mark Stevenson, Holloman CEO. "We have been informed that the first AUD$4,700,000 payable under the Farm-Out has already been transferred to escrow. We have also been advised that Terra Nova intends to undertake seismic acquisition on PEL 112 and PEL 444 at the first possible opportunity."