JUNO BEACH, Fla., Sept. 6, 2005 (PRIMEZONE) -- Universal Property Development and Acquisition Corporation (OTCBB:UPDA) has initiated its funding of one of its oil and gas subsidiaries, Canyon Creek Oil and Gas, Inc., a joint venture with USProduction and Exploration, LLC (USPX). As a result of this cash and stock investment, Canyon Creek has acquired additional wells and lease rights. With that, the company has commenced its plan to work-over 17 existing wells on its 960 acre leasehold in Archer County, Texas. As indicated in the SEC Form 8-K filed on September 2, 2005, UPDA utilized funds realized under a long-term investment agreement in order to provide this funding, which will continue over the next several months and result in significant revenues to the Company.
"Real revenues from actual operations is what this management team is striving to achieve," said UPDA spokesman, Chris McCauley. "This is just the beginning of the realization from our new business model. Once we get these and the other existing wells on line, and begin drilling on the other properties we control and are negotiating to acquire, those revenues will be reinvested. As UPDA continues to refine its plan, we intend to explore many exciting opportunities in both conventional and alternative energy products."
In its 8-K filing, UPDA also detailed further steps it has taken to clarify its model and restructure its financing by terminating its agreement to acquire certain properties inconsistent with that model, and by canceling the issuance of over 200,000 shares of its common stock through a negotiated agreement. "As part of our on-going effort to strengthen the Company and maximize its value, the Board is reviewing all prior transactions and relationships," said McCauley. "We intend to pursue or continue only profitable projects that fit within our model. The real estate project that we have recently terminated simply did not fit and the investor understood and agreed to the stock cancellation. It is a win-win for all involved."
About Universal Property Development and Acquisition Corporation (OTCBB:UPDA)
Universal Property Development and Acquisition Corporation focuses on the acquisition and development of proven oil and gas reserves and other energy opportunities as well as underperforming commercial and residential real estate, through the creation of joint ventures with underfunded property holders.
About USProduction & Exploration, LLC
USProduction & Exploration, LLC, an independent production and exploration company located in Sugar Land, Texas, is engaged in the acquisition of oil and gas producing properties with multiple enhancement opportunities. USPX seeks high quality exploration drilling projects in conventional and unconventional reservoirs. The Company's approach to developing "depleted" reservoirs and unconventional gas is innovative: it combines horizontal, multilateral, and under balanced drilling methods.
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 or expected, or described pursuant to similar expressions.