UPDA Continues Aggressive Plan to Return All Wells to Production by the End of the Year Nov 30, 2006 6:29:00 AM Copyright Business Wire 2006 DALLAS--(BUSINESS WIRE)--
Universal Property Development and Acquisition Corporation's (OTCBB:UPDA) subsidiaries Canyon Creek Oil and Gas, Inc. and Catlin Oil and Gas, Inc., together with its operating subsidiary, UPDA Operators, Inc. and its service subsidiary, Ambient Wells Services, Inc. remain on target in their aggressive plans to return all of UPDA's oil and gas wells to production by the end of the year.
Ambient and its subcontractors continue to work on Canyon Creek's Prideaux Field and UPDA Operators has received a new contract from Targa North Texas, LP to purchase all of the natural gas expected to be produced from this field.
In Palo Pinto County, Ambient and the Texas Rail Road Commission are scheduled to conduct an H5 test of the injection wells that, when completed, will allow UPDA Operators to turn an additional 25 wells to production to supplement the more than 20 wells Canyon Creek is already producing in Coleman and Archer Counties.
Catlin Oil and Gas reports that all of the north side of its field in Jack County has been readied for production while Ambient completes the workover of its south side wells. UPDA Operators is negotiating a new contract with Conoco-Phillips (NYSE:COP) for the purchase of all of the crude oil produced by the 65 wells in the Catlin Field.
"We continue to work at a feverish pace," reports Gaby Damary, COO of Ambient. "We have rigs working 12-16 hour days and roustabout crews working 70 hour weeks to complete this ambitious project. We fully expect all of the wells to be in production before Christmas."
For timely updates of this progress, visit UPDA's website at: www.universalpropertydevelopment.com which will report production from all of the wells as improvements to the site and the wells continue.
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.
Source: Universal Property Development and Acquisition Corporation
---------------------------------------------- Universal Property Development and Acquisition Corporation Jack Baker 561-630-2977 (Investor Relations) info*updac.com
Posts: 83 | From: NJ | Registered: Oct 2006
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I'm only in for 15,000 shares, but if it goes big like it did the last energy spike, I may make a little pocket change.
Posts: 1220 | From: Denver, CO | Registered: Jun 2005
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I would greatly appreciate if anyone could translate this news for me into either good news, ok news, bad news or really bad news as it pertains to the PPS. I cant think of anyone but the the seasoned experienced menbers of this forum. I appreciare in advance you looking at the (UPDA) news following:
Completion of Acquisition or Disposition of Ass
Item 2.01 Completion of Acquisition or Disposition of Assets. I. Texas Energy Unwinding Transaction
Background
On March 7, 2006, Universal Property Development and Acquisition Corporation (the "Registrant"), a Nevada corporation, Ty McDermett and Andrew McDermett, Jr. (collectively the "McDermetts") and Sundial Resources, Inc. ("SRI"), a private Texas corporation, entered into a Memorandum of Understanding (the "MOU") pursuant to which they agreed to terms for the formation and operation of Texas Energy, Inc. ("Texas Energy"), as a joint venture entity. The Registrant owns seventy-five (75) percent of the capital stock of Texas Energy and the McDermetts collectively own twenty-five (25) percent of the capital stock of Texas Energy.
Under the terms of the MOU, and as consideration for their respective shares of the capital stock of Texas Energy, the Registrant provided funds to Texas Energy to finance the operations of the joint venture and the McDermetts and SRI assigned five (5) oil and gas leases (the "Leases") to Texas Energy. The Leases covered approximately three hundred and twenty acres in the oil and gas fields known as Thresher, Medlen, Nantz and Wechman, in Young County, Texas, and the wells and equipment thereon. The MOU had a term of five (5) years. The parties operated Texas Energy under the terms of the MOU pending the completion of a definitive Joint Venture Agreement.
On June 2, 2006, Texas Energy, completed the acquisition of certain additional assets pursuant to the terms and conditions of a Purchase Agreement dated April 12, 2006 (the "PA") by and between Texas Energy as the purchaser and the Catlin Oil Company ("COC"), Virginia Catlin, Randy Catlin and the Estate of Carl Catlin (collectively the "Catlins") as the sellers. The aggregate purchase price of the assets purchased by Texas Energy pursuant to the PA was $1,700,000 in cash.
Under the terms and conditions of the PA, Texas Energy purchased and COC and the Catlins sold all of the rights, title and interest of the Sellers in certain assets collectively defined as the "Jack County Property" in the PA. The Jack County Property consists of: (i) approximately forty-seven (47) acres of real property located in Jack County, Texas, (ii) approximately thirty-six (36) oil and gas Leases on properties located in Jack County, Texas, (iii) certain equipment including, but not limited to, oil and gas wells, wellhead equipment, injection facilities and other equipment used in connection with oil and gas exploration, development and production operations, (iv) certain tangible property including, but not limited to, elevators, trucks, trailers and other vehicles, and (v) certain transferable permits, franchises, approvals, and authorizations used in connection with the Leases.
Agreement to Unwind Texas Energy
The Registrant, the McDermetts and SRI have mutually agreed to unwind the operations of Texas Energy, their joint venture operation, on the following terms:
1. The assets acquired by Texas Energy from the Catlins under the terms of the PA, as described above, shall be transferred by Texas Energy to Catlin Oil & Gas, Inc. ("COGI), a Nevada corporation. COGI is currently a wholly owned subsidiary of the Registrant. The assets assigned by Texas Energy to COGI include all of the Jack County Property described above.
2. The assets transferred by the McDermetts and SRI to Texas Energy under the terms of the MOU described above, shall be transferred by Texas Energy back to the McDermetts and SRI.
3. Upon the finalization of the unwinding transactions described in paragraphs 1. and 2. above, the Registrant shall pay $200,000 in cash to the McDermetts and SRI as compensation for the release by the McDermetts and SRI of all claims to a pro-rata ownership interest in the assets of Texas Energy which are to be transferred to COGI.
4. The shares of capital stock representing 25% of the equity of Texas Energy owned by the McDermetts and SRI shall be returned to Texas Energy and be shall be cancelled. Thereafter, Texas Energy shall be wholly-owned by the Registrant.
Upon the finalization of the unwinding transactions described above, Texas Energy shall have no assets or operations and shall be an inactive subsidiary of the Registrant.
II. Agreement for the Sale of Certain Assets
On or about October 1, 2006, the Registrant and its subsidiaries agreed to sell and Benka Partners, Ltd., Joan Partners, Ltd., Eleben Partners, Ltd. and Anjos Partners, Ltd. agreed to buy certain assets of the Registrant. The aggregate purchase price for the assets to be sold is Two Million Dollars ($2,000,000.00) in cash. The assets to be sold are listed below:
1. Ten Percent (10%) of the outstanding stock of Catlin Oil & Gas, Inc. ("COGI"), a subsidiary of the Registrant); 2. Five Percent (5%) of the outstanding stock of Canyon Creek Oil & Gas, Inc., a subsidiary of the Registrant); 3. Ten Percent (10%) of the outstanding stock of Texas Energy Pipeline & Gathering Systems, Inc., a subsidiary of the Registrant; 4. Ten Percent (10%) overriding royalty on the leases currently owned by COGI; and 5. Ten Percent (10%) overriding royalty on the leases currently owned by Canyon Creek Oil & Gas, Inc.
The final details of the above asset sales are currently being worked out between the parties, but the terms of the sale have been agreed to and the Registrant has received an initial payment of Five Hundred Thousand Dollars ($500,000.00) from the purchases as part of the aggregate purchase price described above. The Registrant expects to finalize the sale of assets, as described above, on or before December 31, 2006.
The foregoing description of the terms of the transactions contemplated by the Registrant are a summary of terms, are not intended to be complete and are qualified in their entirety by the complete text of the documents and agreements which govern those transactions, copies of which are either attached hereto as Exhibits, or shall be filed at a later date once finalized.
Item 302. Unregistered Sales of Equity Securities On November 29, 2006, the Registrant was informed by two holders of an aggregate of 1,217 shares of the Registrant's Series B Convertible Preferred Shares ("Series B Preferred") of their intention to convert such shares of Series B Preferred into shares of the Registrant's common stock on an ongoing basis. Each share of Series B Preferred has a face value of $1,000 per share and is convertible into 200,000 shares of the Registrant's common stock. Each of the two holders of Series B Preferred shares informed the Registrant of their intention to convert Series B Preferred shares into 1,000,000 shares of common stock each on a weekly basis. The conversion of all the currently outstanding shares of Series B Preferred stock would result in the issuance of an aggregate of 243,400,000 shares of the Registrant's common stock. The outstanding shares of Series B Preferred are restricted shares, but they have been fully paid and outstanding for a period in excess of two years from the date of their issuance. No additional consideration is payable upon the conversion of the Series B Preferred to shares of our common stock. Accordingly, the holders of the shares of underlying common stock issued upon conversion of shares of the Series B Preferred shall be entitled to request the removal of any restrictive legends that would be attached to the common shares so issued in accordance with the provisions of Rule 144(k) under the Securities Act of 1933, as amended.
Posts: 203 | From: Ft Collins, CO | Registered: Nov 2005
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Well, I'm out. I will jump back in if it rises to a positive or if it drops to .06
Posts: 203 | From: Ft Collins, CO | Registered: Nov 2005
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