Press Release Source: Universal Property Development and Acquisition Corporation
UPDA Subsidiary Executes Contract with Western Refining for Sale of Condensate from Brownsville Storage Facility
Thursday March 8, 6:29 am ET
SAN ANTONIO--(BUSINESS WIRE)--US Petroleum Depot, Inc., a subsidiary of Universal Property Development and Acquisition Corporation (OTCBB:UPDA - News; FWB:UP1)(BCN:UP1)(GER:UP1)(MUN:UP1)(STU:UP1), has executed a contract with Western Refining, Inc. (NYSE: WRN - News; www.westernrefining.com) for the sale of light crude condensate from its storage facility in the Port of Brownsville, Texas. Western has agreed to purchase as much condensate as USPD is able to deliver for resale to Shell Chemicals, a division of Shell Oil (NYSE: RDS - News; www.shellchemicals.com) in a product-swap transaction.
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Pursuant to this sales agreement, the price to be paid for the light crude will be based on South Texas Condensate quality and will have four components Base Price plus Trade Roll plus a Platt's differential minus Transportation differential. The base price will be the arithmetic average of the daily settlement price for the "WTI" futures contract reported by the New York Mercantile Exchange "NYMEX" using the "CMA ALL DAYS" formula which is the calendar month NYMEX prices for the month of delivery, deemed 40 degrees gravity and deemed delivered in equal daily quantities.
The settlement prices shall be averaged for the entire Merc Trade month while the delivery month is the Merc Prompt month. The months averaged shall be the prompt (delivery) month and the next two months. The roll component for the prompt month/second month shall be the difference between the prompt month averages minus the second month average times a decimal factor determined by dividing the number of trade days in the delivery month that the second month trades on the Merc by the total number of Merc trade days in the delivery month. The roll component for the prompt month/third month shall be the difference between the prompt month average minus the third month average times a decimal factor that is one minus the decimal factor for the prompt month/second month. Weekends and Holidays have neither an actual or interpolated price. The roll components will be added together to arrive at the total roll component.
The Platt's daily high/low average for St. James LLS minus Platt's daily high/low average for Cushing WTI. This is the daily LLS/WTI spread. The daily LLS/WTI spread will be averaged when the delivery month is the prompt trade month.
"Now that we have nearly 20,000 bbls in the tanks and almost all of the necessary regulatory approvals, the final negotiation of this contract should allow us to start making deliveries early next week," reports Agustin Soto, COO of US Petroleum Depot.
About UPDA
Universal Property Development and Acquisition Corporation (OTC BB: UPDA - News) focuses on the acquisition and development of proven oil and natural gas reserves and other energy opportunities through the creation of joint ventures with under-funded owners of mineral leases and cutting-edge technologies.
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.
Contact:
Universal Property Development and Acquisition
Corporation
Jack Baker (Investor Relations), 561-630-2977
info@updac.com