Austin, TX, March 8, 2013 (GLOBE NEWSWIRE) -- United American Petroleum Corp. (OTCBB:UAPC) ("UAPC" or the "Company") is pleased to announce that over the last forty-five days it has secured financing from two different funding sources, JMJ Financial and Asher Enterprises, Inc.
JMJ Financial provided the Company $50,000 in connection with a Promissory Note and may lend the Company an additional amount up to $310,000 under the note. Asher Enterprises, Inc., via a Convertible Note, provided UAPC with $103,500 of funding at an interest rate of 8% per annum. Detailed information regarding these funding initiatives can be found in the Company's recent Form 8-K filing, filed with the Securities and Exchange Commission on March 7, 2013.
Michael Carey, Chief Executive Officer of the Company, stated, "This funding affords the Company the opportunity to focus on its production efforts and allows us to expedite the scheduling of workovers on the Company's leaseholds. To date, we have been extremely successful in increasing production through workovers of existing wells and will utilize these capital contributions to continue fulfilling our business objectives. We are extremely pleased to have met the investors lending criteria and are delighted to have them on board with us for potential future endeavors."
As a result of the funding, UAPC is pleased to announce the immediate scheduling and preparation to begin workovers on three leases: Merrick Davis, Lane Heady and Crouch.
The Merrick Davis lease is 300+/- acres located in Shackleford County, Texas with acreage that will allow for additional potential new drills in the future. There are currently 12 oil wells producing approximately 6-8 barrels (BBLS) of oil per day on the Merrick Davis lease. The Company plans to perform wellbore cleanouts, stimulations and replace outdated and broken equipment to ensure all wells are back online and producing at high capacity. UAPC estimates post workover gross production to be approximately 15-20 barrels of oil per day.
Lane Heady is a 557 acre lease located in Erath County, Texas with 1 gas well to be worked over and room for additional drills. The Company plans to perform wellbore cleanout, stimulations, and replace outdated and broken equipment to ensure the well is back online and producing. UAPC estimates post workover gross production to be approximately 150-200 thousand cubic feet (MCF) of gas per day.
Crouch is a 325 acre lease located in Erath County with 1 gas well and room for additional drills. Currently the well is not producing, but the Company plans to perform wellbore cleanout, stimulations and replace outdated and broken equipment to ensure the well is back online and producing. UAPC estimates post workover gross production to be approximately 150-200 MCF of gas per day.
Ryan Hudson, Chief Operating Officer of the Company, stated, "During 2012, the Company significantly increased production volumes to their highest levels in the Company's short history and is further encouraged by its expected production increases of approximately 50-70% from planned workovers procedures. With continued efforts to return current assets to production, we should be able to continue to increase monthly revenues, thereby solidifying the bottom line of United American Petroleum Corp. On the whole, this financing supports the Company in executing its corporate goals of growing shareholder value."
Michael Carey also stated, "We continue to improve UAPC's operations. The scheduled workovers on Merrick Davis, Lane Heady and Crouch should significantly advance our production and growth, allowing United American Petroleum Corp. to securely establish a stable stream of revenue with a goal of obtaining future profitability. We plan to workover in excess of 100 wellbores from various leases, which is consistent with our 2013 business plan."
For additional information regarding the Company's operations, projects, management team and other valuable information, please visit the Company's web site at www.unitedamericanpetroleum.com. To be placed on the Company's master email list and receive future press releases, progress reports and developments, please send an email to ir@unitedamericanpetroleum.com or contact the Company at 1-855-PETROL-1.
About United American Petroleum Corp.
United American Petroleum Corp. is an independent exploration, development, acquisition, production, and operating company engaged in advanced exploration, drilling and completion techniques to explore for, produce and develop domestic oil and natural gas reserves. The Company's strategy centers on increasing shareholder value through actively pursuing and developing high-potential acquisitions for drilling and production while maintaining a prudently managed balance sheet. The Company's current projects are in Texas, however, additional acquisitions may encompass active plays throughout the United States.
Forward-looking Statements:
This press release contains forward-looking statements concerning future events and the Company's growth and business strategy. Words such as "expects," "should," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks associated with drilling and production programs resulting from geological, technical, drilling, seismic and other unforeseen problems; unexpected results of exploration and development drilling and related activities; continued availability of capital and financing; increases in operating costs; risks associated with oil and gas operations in the United States; availability of skilled personnel; unpredictable weather conditions; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based, except as otherwise provided by law and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We may use certain terms in this press release, such as "probable," "possible," "recoverable" or "potential" reserves among others, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our Annual Report on Form 10-K and our other filings with the SEC at www.sec.gov before making any investment in the Company.