UPDA-Universal Property Development and Acquisition
Corporation subsidiary, Texas Energy, Inc., has executed
an agreement to purchase over 30 leases, covering approximately 2700
acres in Jack County, Texas. The property, known as the Catlin Oil and
Gas Field, contains 64 wells, 12 miles of pipeline and a 70 mile
gathering system. In addition, Texas Energy will acquire several
pieces of much needed well service equipment including rigs, dozers
and graders. This equipment has been internally valued in excess of
$1,000,000.00.
"This acquisition establishes UPDA as a solid presence in North
Texas and provides the service equipment we have been seeking so that
we can perform our own workovers," said Chris McCauley, UPDA Vice
President. In addition, the pipeline and gathering system will allow
us to provide the neighboring producers with transportation services
so that they can get their product to market. This acquisition has
great promise."
In conjunction with this acquisition, UPDA will establish two
additional subsidiaries - one to perform all drilling, workover and
well maintenance services for UPDA properties in the area and another
to market the pipeline and gathering capabilities to neighboring
producers. These new subsidiaries will be funded by UPDA and utilize
the equipment and pipelines acquired in this transaction.
"Despite the fact that these wells have been substantially ignored
since Mr. Catlin passed away three years ago, they still generated in
excess of $1,000,000.00 in revenue last year," continued UPDA's
McCauley. "As soon as this deal is closed, we will commence a workover
program that we expect will greatly enhance the production from the
existing wells. After that, we will start a drilling program of
relatively shallow wells similar to the 64 existing. At the same time,
we will explore deeper drilling in order to exploit the Barnett Shale
prospect of the property. If the property does produce from the
Barnett Shale as we expect it will, Texas Energy will establish itself
as force in North Texas oil and gas.""
An independent reserve analysis performed by Randy Moseley,
Certified Petroleum Engineer, in November 2005, estimated that the
property, from current production zones, contains reserves of
approximately 2,500,000 mcfg and 400,000 barrels of oil. This analysis
did not consider the production potential of the Barnett Shale
prospect or other multiple pay zones of the property.
In addition to the lease rights, pipeline, gathering system and
equipment, Texas Energy also acquired approximately 50 acres of
surface rights, 35 of those acres attached to a house on the property
and 15 acres involving the shop and equipment field. The total
purchase price, including all brokers' commissions and due diligence
consultants is $2,300,000.00 and the acquisition is scheduled to close
on or before May 23, 2006.
The production from these wells will be reported by UPDA as it
continues to update its website at:
www.universalpropertydevelopment.com.
About UPDA
Universal Property Development and Acquisition Corporation
(OTCBB:UPDA) focuses on the acquisition and development of proven oil
and natural gas reserves and other energy opportunities through the
creation of joint ventures with under-funded owners of mineral leases
and cutting-edge technologies.
Statements contained in this press release that are not based upon
current or historical fact are forward-looking in nature. Such
forward-looking statements reflect the current views of management
with respect to future events and are subject to certain risks,
uncertainties, and assumptions. Should one or more of these risks or
uncertainties materialize or should underlying assumptions prove
incorrect, actual results may vary materially from those described
herein as anticipated, believed, estimated, expected, or described
pursuant to similar expressions.
KEYWORD: NORTH AMERICA FLORIDA TEXAS UNITED STATES
INDUSTRY KEYWORD: ENERGY OIL/GAS NATURAL RESOURCES MINING/MINERALS MERGER/ACQUISITION
SOURCE: Universal Property Development and Acquisition Corporation
CONTACT INFORMATION:
Universal Property Development
and Acquisition Corporation
Bradford Moore, 561-630-2977 (Investor Relations)
info@updac.com
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