AUSTIN, Texas, Jan. 5, 2012 (GLOBE NEWSWIRE) -- United American Petroleum Corp. (OTCBB: UAPC.OB) announced on its 8-K Filing of December 5, 2011, it has acquired 100% working interest in the McKenzie lease in Pecos County, Texas, for a purchase price of $550,000 and 50,000 shares of restricted common stock. The project consists of one oil-producing well at a depth of 11,800 feet on 186 acres, and should add approximately $14,400 per month in oil revenues for United.
Tremendous success in the area has been demonstrated by Kinder Morgan Production Company, which has yielded 1,864 oil-producing wells. To date, 16,079 reservoirs have been discovered in the region affording extensive data on several oil and gas wells. Over 10 million barrels of oil were produced in the area in 2010.
The well is currently offline due to the discovery of a hole in the tubing and will require a minor work-over. The faulty section will be pulled, replaced, and is expected to produce an estimated 8 - 10 bbl per day, which was its most recent production rate prior to developing the hole in the tubing. In addition to the production from this current zone, several additional horizons (which are productive in the area) have been identified in the McKenzie well, which could be tested and potentially produced in the future.
Christian Negri, United American Petroleum's Chief Financial Officer, stated, "One of our integral models, which UAPC was founded upon, is the acquisition of oil-producing properties with exploitation opportunities. With that being said, UAPC is pleased to announce the acquisition of the JF McKenzie State #1 well. With the current production of this well, along with its booked reserves and "behind-pipe" potential, we believe it will be a key asset for the Company's portfolio. In combination with its current developments and production, the Company believes it is well positioned for rapid expansion."
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 Investor Relations 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 main current projects are in Texas, however, additional acquisitions may encompass active plays throughout the United States.
The United American Petroleum logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=8834
Forward-looking Statements:
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth and business strategy. Words such as "expects," "will," "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, changes in the Company's business; competitive factors in the market(s) in which the Company operates; risks associated with oil and gas operations in the United States; 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.
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 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 filings with the SEC.