SALT LAKE CITY--(BUSINESS WIRE)--Feb. 9, 2006--Universal Property Development and Acquisition Corporation (OTCBB:UPDA - News) subsidiary, West Oil & Gas, Inc., has entered into negotiations with Homeland Gas and Oil, Inc. of Roosevelt, Utah for a well recompletion venture which is slated to be undertaken in Uintah County, Utah.
This project will be similar to other successful efforts in the same township and will include running new casing, well site refurbishment, logging, frac type stimulation and setting of a new Rotoflex Pumping Unit on the well known as the Ute 1-16 A1E.
Homeland Gas and Oil, Inc. (HGO) has numerous opportunities for both recompletions and step out drilling in the Bluebell/Altamont area. Homeland's "Stock in Trade" is solid prospective properties that have been under utilized. As prices for oil and gas have continued to rise, these properties have become more and more attractive and desirable. As indicated by Bob Ballou, Homeland Geologist, "this is an outstanding prospect with tremendous upside potential."
A mutually acceptable agreement for the venture will be entered into by all of the participants, including HGO and Landmark 4 LLC. An Area of Mutual Interest (AMI) will be established and the venture will be managed and operated by HGO.
Once the agreement is signed by all of the participants, the project will be funded for the estimated total cost amount of $863,310.00 and the funds put in escrow. HGO will draw on AFE funds for actual costs associated with the project. HGO management duties will include the following:
Preparation of a detailed chronological prognosis and task list.
Preparation of all sundry notices and notification to all State, Tribal and Federal entities.
Coordination of and preparation for the actual work being preformed.
Setting up a COPAS approved accounting system for the project as determined by the operating agreement, and determining a mutually agreed to notification system to inform all partners of every facet of the daily work, subsequent production and day to day LOE costs.
Baring any unforeseen weather problems, following the signing of the agreement preparations for the project should conclude within three weeks time. Actual time from start of workover to establishing production is anticipated to be 3-4 weeks in duration.
AI
