Press Release Source: Universal Property Development and Acquisition Corporation (UPDA)
UPDA Projects 4th Quarter Revenue Of Subsidiaries - Should Approach Or Exceed $5 Million Per Month(a) Tuesday October 25, 8:23 am ET
JUNO BEACH, Fla.--(BUSINESS WIRE)--Oct. 25, 2005--The management of Universal Property Development and Acquisition Corporation (OTCBB:UPDA - News) has completed the refinement of its business model in order to focus on oil and natural gas development and finalized its strategic planning and revenue forecasting for Canyon Creek Oil and Gas, Inc., its Texas subsidiary, and West Oil and Gas, Inc., its subsidiary in Utah.
ADVERTISEMENT [-69696] After meeting with the management of those subsidiaries over the course of the past month, UPDA is prepared to project the subsidiaries will generate gross revenues approaching or exceeding $5 million per month by the end of the 4th Quarter of 2005(a).
Since July, Canyon Creek, a joint venture with USProduction and Exploration, LLC. (USPX), has acquired seven oil and gas fields totalling over 3200 acres. It is performing a revitalization project in 5 of the fields and will have wells in each field in production this quarter. Conservative production estimates for the wells that will be brought on line this quarter indicate that Canyon Creek will produce approximately 100,000 mcf of natural gas(a) and more than 4250 barrels of oil per month(a).
Conservatively assuming gas prices of $10.00/mcf and oil prices of $60.00/barrel, Canyon Creek will be generating nearly $1.4 million per month of gross revenue(a). UPDA has recently agreed to increase its stake in Canyon Creek to 65%.
In October, UPDA entered into a joint venture with Dark Horse Exploration, Inc. and Masaood Group, USA and established West Oil & Gas, Inc. in order to develop the 4000 acre Dirty Devil Gas Field in Uintah County, Utah. Two wells are presently generating about 4500 mcfg per day. Three additional wells will be brought on line during this quarter, increasing conservative production estimates to nearly 320,000 mcfg per month(a). Should natural gas prices continue to increase as anticipated, West will generate as much as $3.5 million per month or more by the end of the 4th quarter(a). UPDA owns 60% of West.
The chart below details these production estimates.
CANYON CREEK OIL & GAS, INC.
Lease Acreage Wells Producing Oil Natural Gas In 4th Quarter Production(a) Production(a)
Coleman (Hagler) 915 12 900bopm 1,800mcfgm
Archer County 960 14 1,200
Palo Pinto 614 10 360 1,500
Inez 243 1 1,950 78,000
Fayette (Giddings) 80 1 300 9,000
Prideaux 40 1 60 6,000
Boyle Field 369 4 450
WEST OIL & GAS, INC.
DD 11-29 45,000
DD 1-18 90,000
DD 23-20 90,000
DD 23-17 90,000
DD 41-19 1,800
The Dirty Devil Wells will generate nominal amounts of oil which have not been projected.
(a) Based on partial production and/or historical results.
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