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UPDA Subsidiaries Acquire Additional Revenue Generating Properties Including Further Barnett Shale Prospect and Pipeline Thursday May 11, 8:53 am ET
GRAHAM, Texas--(BUSINESS WIRE)--May 11, 2006--Texas Energy Inc., a subsidiary of Universal Property Development and Acquisition Corporation (OTCBB:UPDA - News) continues to acquire revenue generating assets and has recently entered into a letter of intent to purchase several properties in the state of Texas from L&R Energy Corp. and Chance Oil Co. Inc. ADVERTISEMENT
Through this transaction, subsidiaries of UPDA will acquire a gas pipeline of approximately 18 miles, an 80 mile gas gathering system, 6 producing wells currently generating 250 MCFG/D, mineral rights to 588 Acres containing prospects for production from the Barnett Shale and associated deep drilling rights for that acreage.
The 5 leases acquired are known as the Conway, the Mayberry, the Moody, the Crawford, and the Caroway. In these transactions, the UPDA subsidiaries will acquire a 77% NRI on all of the oil and gas leases and a 100% WI.
UPDA intends to divide this acquisition between its Texas Energy and its Texas Energy Pipeline and Gathering subsidiaries whereby both entities will immediately increase their revenues and expand their asset bases. Consistent with the UPDA business model, the acquisition will provide immediate income for both entities from established production and agreements and present the potential to substantially increase revenues through a drilling program into the Barnett Shale, a workover and enhancement program on the existing wells and the opportunity to expand the collection and transportation of gas generated by neighboring producers through the extension of the Texas Energy Pipeline and Gathering System initiated by the purchase of the Catlin Field.
"This acquisition is a manifest demonstration of our business objective," said Chris McCauley, UPDA Vice President. "Our strategy is to pursue properties that will generate an immediate stream of revenue while presenting a legitimate probability of significant production expansion and the opportunity to vertically integrate UPDA's operations within the oil and gas industry. We believe that the oil and gas production, prospects and reserves we have acquired in the past 10 months together with the staff and infrastructure we have enlisted to exploit those assets uniquely position UPDA to prosper. As the production from the existing wells is maximized and the untapped potential of the properties is developed, we foresee an expanding revenue stream providing for the long term growth of shareholder value as intended."
Universal Property Development and Acquisition Corporation (OTCBB:UPDA - News) 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.
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