HOUSTON, Feb. 19, 2008 (PRIME NEWSWIRE) -- Holloman Energy Corporation (OTCBB:HENC) (the "Company" or "Holloman") announces the strategic divestiture of its wholly-owned subsidiary, Endeavor Canada Corporation ("Endeavor"). In a move set to focus the Company's attention on its Australian oil investments, Holloman has determined to divest of its Canadian-based oil and gas properties.
Effective February 15, 2008, Holloman exercised its rights under an option agreement with its former Chief Executive Officer, Cameron King, to exchange King's preferred shares in the Company and one of its subsidiaries for 100% of the outstanding common shares of Endeavor.
"We believe the divestiture of our Canadian assets focuses our resources on our highest value holdings," stated Mark Stevenson, Chairman of Holloman's Board of Directors. "We think it's the best available approach to streamlining costs, promoting efficiency and maximizing returns from our drilling efforts."
Forward-Looking Statements:
This press release includes forward-looking statements as determined by the U.S. Securities and Exchange Commission (the "SEC"). All statements, other than statements of historical facts, included in this press release that address activities, events, or developments that the Company believes or anticipates will or may occur in the future are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which the Company has little or no control. The Company does not intend (and is not obligated) to update publicly any forward-looking statements. The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the Company's recent filings with the SEC.
ON BEHALF OF THE BOARD OF DIRECTORS Holloman Energy Corporation