UPDA Subsidiary - Texas Energy, Inc. - Enters Agreement to Purchase 2700 Acre Oil and Gas Field in Jack County, Texas; Acquisition Includes Existing Production and Undeveloped Barnett Shale Prospect 4/18/2006
GRAHAM, Texas, Apr 18, 2006 (BUSINESS WIRE) -- Universal Property Development and Acquisition Corporation (OTCBB:UPDA) 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.
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 Bradford Moore, 561-630-2977 (Investor Relations) info*updac.com
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This one has been moving from .18ish to .20ish the last couple of weeks.....everytime it gets in the .20x range it hits a wall and retraces....We need some momo to get it through this resistance.....From previous charts you can see it can easily run up to .45ish with the right volume.....maybe this pr will light a fire under it???.....big down day yesterday
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I've been in this one. When looking at the chart don't get confused like I did. When it easily ran in the past it was because the O/S was 22 Million. The O/S was over 90 Million when I checked last month. It will take more to make this move than it did in the past. That is one of the reasons you see it having trouble in the .20 area. The other thing I would be interested in finding out is how they financed these recent acquisitions. I don't believe they had the capital according to the last 10K.
posted
"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. "
400,000 barrels of oil (NOW, in April is $71) not to mention what the worth will be this summer...
That's an oil field that has $28,400,000 of oil, not to mention some natural gas. Not bad after paying $2,300,000.00 for the whole deal, PLUS the $1,000,000 in equipment they get (don't know if that's figured into the $2,300,000 number or not).
Anyway, a potential 10:1 on any business deal looks good to me.
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jeez, fellas, it's crazy down here--anybody who can assemble a rig is drilling. We prolly passed half a dozen new ones on the way in from a job today. The city council is considering three new wells--in the city limits.
[ April 18, 2006, 20:38: Message edited by: BuyTex ]
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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So what's up with this stock. If you back a couple of years, it seems to have hit a high of $80 per share and is now trading at .015ish?!!?!?
Look how volatile this thing is. There were some SERIOUS jumps in this chart, lots of profit possibility.
I would have though with the most recent pr the stock would have seen some excitement, but I guess not. Maybe people are waiting until the May 23rd confirmation date for the land acquisition.
posted
There are many stocks that traded in the $100's a few years back that don't exist anymore too. With pennies...past history means little to nothing.
-------------------- Making it a little at a time....Now is the time to determine if you are a man or a mouse.
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i don't think so, u know im holding about 70k shares at entry point of .182 what do you think how i feel now? lol..but im holding it, because this baby will go up soon, u never know all prs are good so far
-------------------- i wish one day i would be rich but the wish is all in your hand!!
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quote:Originally posted by Zosyn: So what's up with this stock. If you back a couple of years, it seems to have hit a high of $80 per share and is now trading at .015ish?!!?!?
Look how volatile this thing is. There were some SERIOUS jumps in this chart, lots of profit possibility.
I would have though with the most recent pr the stock would have seen some excitement, but I guess not. Maybe people are waiting until the May 23rd confirmation date for the land acquisition.
What do you guys think?
"what do you guys think?....chart has hugh dumping going on...."
duh, has my vote of NO confidence. btw ,where the hell is Juno Florida? I don't wanna know... Note**** I should mention I do not like/nor invest in companies from florida*****
-------------------- Do not invest on any of my suggestions
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Just remember, the amounts didn't include the Barnett shale sites.
Over 700 hundred wells have been drilled in the Barnett without a dry hole. Many of these will produce over 1 BCF with the best at 2 BCF; some areas produce less with an average of about .5 BCF. The Barnett Shale gas has a BTU from 950 in the south to about 1250 in the Fletcher area, garnering a premium from $0.30 to $0.50/MCF. Barnett Shale wells have been producing for over 14 years, thus some wells may produce for 20 years or more.
My mistake, barnett shale is at 8,000 to 9,000 feet depth.
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