HOUSTON, Sept. 20, 2005 (PRIMEZONE) -- Canyon Creek Oil & Gas Inc. (A Joint Venture Company between Universal Property Development and Acquisition Corporation (OTCBB:UPDA) and USProduction & Exploration, LLC, a privately held Company) today announced that its program to revitalize oil and gas wells located on its properties in the Fort Worth basin continues as planned.
The Company said work on the Hagler Capps Lime Field in Coleman County, Texas is nearly complete. The Hagler Capps Lime Field is comprised of 2 leases totaling 915 acres and 12 wells. Eight wells produce oil and gas, 3 wells are injectors, and one is a water supply well.
Continental Oil Company, predecessor to ConocoPhilips (NYSE:COP), discovered the Hagler Capps Lime Field in 1954 and the field has a cumulative production of over 1,140,000 barrels of oil. The oil produced from the Capps lime formation is found between 1,900 and 2,000 feet below the surface. Continental successfully initiated water flood procedures on the west side of the field to enhance oil recovery soon after the field was discovered. However, water flood procedures were never utilized on the east side of the field where 4 wells still produce oil free of water.
Steven A. Fall, Canyon Creek's project geologist, has mobilized road building equipment and a roustabout crew to make ready the roads and tank battery site. Canyon Creek has already received a permit and will begin to inject produced water into the oil sand at the number 1-B East Hagler well located on the east side of the field to increase production.
"Canyon Creek is ready to turn on the 5 existing oil wells this week and the initial production is anticipated to be 8-12 barrels per day and 30 mcf gas per day," said Fall. "Once water is injected into the number 1-B Hagler well, production should increase to 30 bopd within 90 days."
Once the water flood is fully operational on the east side of the field, the production rate should increase to 900 bopm and 900 mcfgpm. Projected monthly cash flow, after deducting for royalties, lease operating expenses and taxes, at $50.00/barrel and $7.50/mcfg is approximately $33,000.00.
Canyon Creek Oil & 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. has in excess of 60 wells located on over 2,000 acres in the Fort Worth basin in its expanding portfolio. The Company is also evaluating properties for Barnett Shale prospects.
About Universal Property Development and Acquisition Corporation
Universal Property Development (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 holders.
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.
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 or expected, or described pursuant to similar expressions.