JUNO BEACH, Fla., Sept. 29, 2005 (PRIMEZONE) -- Universal Property Development and Acquisition Corporation (OTCBB:UPDA) continues expansion of its oil and natural gas portfolio through its subsidiary, Canyon Creek Oil and Gas, Inc., a joint venture with USProduction & Exploration, LLC (USPX), a privately held company.
In July, Canyon Creek acquired its initial 2,000 acres and 60 wells in northern Texas. In August, the Inez Field in Victoria County, Texas was purchased and in September, the Giddings Field in Fayette County, Texas was secured. Negotiations are on-going for the purchase of no fewer than five more gas fields, including a field consisting of approximately 10,700 acres.
Universal has provided funding for the revitalization of these wells and Canyon Creek recently announced that it will commence gas sales from its Hagler leases located in Coleman County, Texas before the end of September. The company will immediately deliver about 900 mcfgpm from five wells and, with additional funding from Universal, another seven wells will be brought on line in the next several days.
Under a recently negotiated contract, Sunoco will gather and purchase the oil produced beginning this week. The final terms of a natural gas purchase contract will also be completed this week.
It is estimated that Canyon Creek has already acquired reserves in excess of $30 million.
"The aggressive growth and efficient revitalization that the Canyon Creek management has been able to direct is remarkable," said UPDA vice president, Chris McCauley. "We will continue to fund their projects and will be exploring several additional oil and gas opportunities that have been presented to us."
Canyon Creek Oil and Gas Inc. was formed in July 2005 as a joint venture corporation for the purpose of acquiring currently producing oil and gas properties, low risk drilling prospects, and existing wells in need of state-of-the-art technology to improve profitability. Canyon Creek Oil and Gas Inc. now has over 60 wells located on more than 2,000 acres in the Fort Worth basin.
About Universal Property Development
Universal Property Development and Acquisition Corporation (OTCBB:UPDA) focuses on the acquisition and development of underperforming commercial and residential real estate as well as proven oil and gas reserves and other energy opportunities through the creation of joints ventures.
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.
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.