HOUSTON, Sept. 14, 2005 (PRIMEZONE) -- Canyon Creek Oil & Gas Inc. (A Joint Venture Company between Universal Property Development and Acquisition Corporation (OTCBB:UPDA) and USProduction & Exploration, LLC (USPX), a privately held Company) is pleased to announce that it has completed the geology on its recently acquired 243 acre lease in Victoria County. The lease is located in the Inez Gas Field about one mile west of Inez, Texas. A shut-in gas well on the 243-acre lease, the No. 1 Roberts Unit, was completed in February 1990 in the Yegua sand "B" stringer at 8498 to 8510 feet.
Donald W. Orr, President for Canyon Creek said, "The most attractive part of the No. 1 Roberts Unit located on the lease is the well completion information found on the Form G-1 report filed with the Railroad Commission of Texas. The Form G-1 shows the well flowing 2,668 mcfgpd on a 8/64" choke with 4,727 psi flowing tubing pressure."
"The well flowed at an absolute open flow of 9,000,000 cfg," Orr says.
The work-over reports acquired on the No. 1 Roberts Unit indicate a poor cement job caused the 5" production casing failure within a short period of time. Later the Yegua "B" stringer was squeezed with cement. The well was then re-completed in the Yegua "C" stringer at 8530-34 feet. The Yegua "C" stringer produced 593,000 mcfg and 16,000 barrels of condensate prior to a second casing collapse in the lower portion of the well.
Canyon Creek has initiated an in-depth study to determine the most viable manner to recover the gas found in the Yegua "B" stringer. That study should be completed in two weeks.
According to the Company's calculations, it is estimated the reserves remaining total 4.3 billion cubic feet of gas and 105,000 barrels of condensate. Based on these calculations, the future net value of this single well, discounted at 10%, is $20 million.
Canyon Creek Oil & Gas Inc. was formed in July 2005 as a joint venture corporation for the purpose of acquiring oil and gas producing properties, low risk drilling prospects, and prospects in need of state-of-the-art technology to make them viable. Canyon Creek Oil and Gas Inc. has 60 wells located on 2,000 acres in the Fort Worth basin in its current portfolio. The Company is evaluating the properties for Barnett Shale prospects.
About USPX: 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, with underbalanced drilling methods.
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 joints ventures with underfunded property holders.
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.