HOUSTON, Aug. 29, 2005 (PRIMEZONE) -- Canyon Creek Oil & Gas Inc. (A Joint Venture Company between Universal Property Development (OTCBB:UPDA) and USProduction & Exploration, LLC, a privately held Company) today announced that it has initiated its plan to work-over 17 wells located on its 960-acre leasehold.
Steven A. Fall, Canyon Creek's project geologist, has mobilized a roustabout crew to survey the properties prior to moving in a work-over rig owned by a local rig operator. The roustabout crew will move in road building equipment to make ready the roads for the heavy oil field equipment. Canyon Creek will move the existing saltwater disposal system approximately 5,000 feet in order to be adjacent to the saltwater disposal well located on its leasehold. After moving the system, the plan is to modernize the salt-water disposal system to accommodate additional water anticipated after the work-overs are completed. New flow-lines will be installed and the saltwater disposal pump overhauled.
The Archer County Regular Field project is located south of Wichita Falls, Texas, in Archer County. Canyon Creek's Archer County Regular Field project consists of 960 acres with 17 wells overlying multiple producing horizons (the Vogtsberger sands, the Caddo and the Ellenberger formations). A production history for the past 10 years shows the 960-acre leasehold averaged 25 barrels of oil per day from 9 of the wells. Canyon Creek has one existing saltwater disposal well and plans to dedicate two wells for future water injection. The remaining 14 wells are scheduled for work-over immediately in order to maximize oil production.
"Our work-over plans include changing down-hole pumps to increase fluid movement," said Canyon Creek's President, Donald Orr. "We know the oil is there and it all becomes a function of producing more fluids to maximize oil production. We are very excited about this project because once all 14 wells are producing with new and larger capacity pumps, we could exceed our 25 bopd expectation by 1.5 to 2 fold."
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 improve viability. 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 Universal Property Development
Universal Property Development and Acquisition Corporation 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 underbalanced drilling methods.