Outstanding Share as of August 15, 2007, was 6,446,850
United Heritage Corporation Announces Blackwood Ventures LLC Acquires Major Stake for $5.017 Million September 27, 2007
United Heritage Corporation (Nasdaq: UHCP), a public company involved in the development of heavy oil assets, announced today that on September 26, 2007, Blackwood Ventures LLC (BVL), a limited liability company organized in the State of Delaware with Blackwood Capital Limited as its Managing Member, acquired all of the securities in United Heritage Corporation belonging to Walter G. Mize, which represents a majority of the Company's outstanding voting power. Mr. Mize, who prior to this transaction was the Company's largest shareholder and a member of the board of directors, currently plans to continue as a director of the Company.
Andrew Taylor-Kimmins, a principal of Blackwood Capital Limited, stated, "We have acquired the shares as an investment which we intend to actively manage. United Heritage Corporation has four leases covering 10,500 acres in the Wardlaw Field located in Edwards County, Texas. We believe that this acreage possesses immense potential and it is important to note that there has already been oil production from the field. We expect to complete a pilot project on this acreage during the first quarter of 2008."
In exchange for $5.017 million, BVL has secured 3,759,999 shares of Common Stock in United Heritage Corporation, a warrant to subscribe for 953,000 shares of Common Stock at $3.15 per share, a warrant to subscribe for 1,000,000 shares of Common Stock at $3.36 per share, and a third warrant to subscribe for 953,000 shares of Common Stock at $3.75 per share.
Until recently, UHCP was a southwest-focused, onshore oil and gas acquisition, development and exploration company headquartered in Midland, Texas. It has since streamlined its business to focus solely on the development of on-shore heavy oil assets, which UHCP believes offer greater upside potential at far less cost than its previous strategy. A substantial portion of world-wide heavy oil reserves are located in the US and Canada and are far less susceptible to political instability. The current high price environment also makes these projects more attractive than in the past.
Earlier engineering estimates suggest that there is a potential of 168,000,000 barrels of oil in place on the Wardlaw property. In addition, there exists the possibility of deep natural gas reserves. BVL believes that ultimate oil recoveries applying the production strategies under development may potentially be in the 40-70% range, with 20-30% estimated during the initial production phase.
Taylor-Kimmins concluded, "After a year of investigation, we believe we are investing in a project that will provide substantial economic returns to the shareholders of United Heritage Corporation over the course of the next several years.
As we develop this asset, UHCP will continue to evaluate other oil projects, heavy and light, sweet and sour."
United Heritage Corporation, founded in 1981 and based in Midland, TX, is focused on the development of on-shore oil and gas assets. The company has four leases covering 10,500 acres in the Wardlaw Field located in Edwards County, TX. A report received by the Company in 1984 estimated 168 million barrels of oil in place on the property. The oil is categorized as "medium crude," the deposits are in the light gravity range of heavy oil at 14-25 API gravity. The Company believes that ultimate recovery could be in the region of 40%. Management believes its acreage has always held great reserves, but the technology to properly extract the reserves is still being considered. Some oil production has already been established from the field, and the Company expects to implement a Pilot on this acreage during the second quarter of 2008.