HOUSTON, Sept. 15, 2005 (PRIMEZONE) -- Canyon Creek Oil & Gas Inc. (A Joint Venture Company between Universal Property Development (OTCBB:UPDA) and USProduction & Exploration, LLC (USPX), a privately held Company) today announced its third acquisition, an 80-acre lease in Fayette County, Texas. The lease is located in the Giddings Gas Field, one of the largest producing gas fields in Texas. The lease has a shut-in gas well, the No. 1 Baron that was completed in March 1986 flowing gas from the Austin Chalk formation. In the Giddings Gas Field, the Austin Chalk formation is found below 12,000 feet.
"The good news is that the well has already produced 905,000 mcfg and 23,416 barrels of oil and the flowing pressure remains at 2100 No. at the surface," said Donald W. Orr, President of Canyon Creek. "After the Company made a deal with the mineral owners to acquire the lease, we sent a Company geologist on location to flow test the well to the atmosphere. The original flowing pressure recorded was 2,821 No. in 1986 and, after producing a significant amount of gas, the well head pressure still remains high. With the geologist on location, the well was flowing a significant amount of gas through a 14/64 positive choke with a flowing tubing pressure stabilized at 2100 No.," said Orr. Canyon Creek is currently seeking bids from oil field service companies operating in the area to equip the well with surface production equipment.
"The Company calculates the flow rate exceeded 2,000 mcfgpd," continued Orr. "We are pleased with the performance of this test and this flow rate. At this rate, the cash flow to the Company from this well will be substantial."
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 & Gas Inc. now has 60 wells located on 2,000 acres in the Fort Worth basin in its current portfolio, a well located in the Inez Field in Victoria County, and one well in Giddings Gas Field in Fayette County.
About Universal Property Development
Universal Property Development and Acquisition Corporation (OTCBB:UPDA) 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 owners.
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 under balanced drilling methods.