VANCOUVER, British Columbia, Nov. 8, 2002 (PRIMEZONE) -- Universal Domains Incorporated (OTCBB:UDCCF) is pleased to announce the details of its Agreement with Shamrock Oil and Gas Inc., of Gulfport Mississippi, to purchase a 50% working interest in five oil and gas properties in the South Eastern United States.
Universal Domains will issue 100,000,000 shares, at a deemed value of $0.10 per share, for a 50% working interest in 5 proven oil fields to be placed in escrow. These shares will be released upon the performance of the five properties going into production and the requisite financing attained. The working interest received by Universal Domains will begin at 75% and remain there until the capital expenditures have been repaid. Universal Domains shall be appointing 3 new Board Members, veterans of the North American Oil and Gas industry to direct the company in its new direction.
Project A
This is a Lower Tuscaloosa project at a depth of 11,000 feet. A lower sand has produced a significant amount of oil from a depth of 12,000 feet. The sand at 11,000 feet has been overlooked for years, most likely due to a low resistivity reading from the electric log. However, after the completion of a reservoir engineering study, it is estimated that a minimum of 4.1 million barrels of oil and 5.8 billion cubic feet of gas will be recovered from this prospect.
This field covers over 2,800 acres. The initial objective will be to re-complete 7-wells, however, additional wells may be drilled to recover reserves. Another sand at a depth of 12,300 feet also looks productive in the field. This sand will be tested in one of the already completed wells. If the test is successful, then this will add 2 million barrels in reserves for this field. Production is expected to be 800 barrels of oil per day from the initial phase; reserves should be 7-million barrels of oil equivalent.
Project B
This is a Lower Tuscaloosa project at a depth of 12,500 feet. The original operator recovered several million barrels of oil and gas from the producing sand but overlooked another sand 20 feet deeper separated by a shale break. The bottom sand has good electric log response and has analyzed oil by sidewall core. The former operator, most likely, believed that the top sand would drain the bottom sand but a recently drilled well shows that the oil-water contact for the bottom sand has not changed and therefore has not been drained.
The field covers about 800 acres. Two wells will be re-completed and 3 additional wells will be drilled to recover reserves. The average pay for each location is 40 feet. The potential is 6-7 million barrels of oil reserves and 625 barrels of oil per day of production.
Project C
This is a Lower Cretaceous project that ranges in depth from 6,500 to 7,500 feet. The structure covers approximately 800 acres. One well was drilled on the flank of the structure and encountered 100 feet of oil pay, in multiple sands, with good porosity and permeability. The operator had completion problems even though the well analyzed oil with good porosity and permeability. The remainder of this prospect has never been drilled.
A 3-D seismic survey must be completed to have an accurate picture of the structure. Fifteen wells will need to be drilled to develop the field. The potential is 10 to 12 million barrels of oil reserves and 1,000 barrels of oil per day of production.
Project D
This is a Lower Tuscaloosa project at a depth of 9,000 feet. One well was drilled on the structure and appears to have significant oil pay by electric log. This zone was not tested and the well was plugged. The structures cover around 1,350 acres. The initial objective for this project will be to re-enter the plugged well and run through-casing oil saturation logs to analyze the prospective zone. If the logs analyze oil, the entire structure will need to be developed by drilling 17 new wells. The potential is 10 million barrels of oil and reserves and over 2,100 barrels of oil per day of production.
Project E
This is a Eutaw project at a depth of 3,500 feet. It covers about 1,600 acres. Twenty new wells will be drilled in a proven reservoir to exploit remaining reserves. The gravity of the oil is 20 degrees so the new wells will be drilled on 20-acre spacing. Twelve million barrels of oil are estimated to be recovered and initial production should be 1,000 barrels of oil per day.
Project Summary
The five projects mentioned are estimated to contain approximately 50,000,000 barrels of oil and 5.8 billion cubic feet of gas. The fields have been calculated to produce 5,525 barrels of oil per day collectively. The potential gross revenue to Universal Domains is expected to be over $350,000,000 during the next fifteen years. These numbers and projections are based on data collected by Inland Petroleum LLC.
About Universal Domains Inc.
Universal Domains Inc., has just entered the oil and gas industry with an experienced partner/operator in order to take advantage of high oil prices and diversify its business interests for the purpose of continuing to increase shareholder value. Universal Domains owns a 50% working interest in 5 oil and gas fields located in the continental United States with a collective estimated reserve of 50,000,000 barrels of oil and 5.8 billion cubic feet of gas.
Universal Domains Inc. owns VCL Communications Corp. (ViaCall), a teleconferencing service company that provides voice conferencing, video conferencing and web casting services via a sophisticated network. ViaCall has produced steadily increasing revenues over the last year.
Certain matters discussed in this press release may constitute forward-looking statements within the Private Securities Litigation Reform Act of 1995 and, as such, may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Readers are cautioned not to place undue reliance on the forward-looking statements made in this press release.