UPDA Prepares to Assign Texas Wells and Leases to Heartland - Production to Transfer at Start of 4th Quarter
Monday September 24, 1:31 am ET
JACKSBORO, Texas--(BUSINESS WIRE)--In conjunction with the streamlining of its operations, the land and legal staff of Universal Property Development and Acquisition Corporation (OTCBB:UPDA - News; FWB:UP1) met this past week in order to prepare the documents necessary to complete the assignment of its Texas oil and gas wells and leases to its Heartland Oil and Gas Corp. subsidiary (OTC BB:HTOG - News; FWB:HOCA).
In Jack County, Texas, UPDA will assign its 2700 acre Catlin Oil and Gas Field to Heartland, transferring production valued at approximately $100,000 per month, as well as the related gathering system, extensive pipeline and surface equipment on as many as 65 wells.
UPDA will also assign its recently acquired gas field comprised of several leases and more than 10 producing wells in Palo Pinto County, Texas to Heartland. This field currently generates revenue in excess of $100,000 per month and, with the installation of a new salt water disposal well, is expected to significantly increase production when many of the presently shut in wells are recompleted in the Barnett Shale and brought on line.
In conjunction with these assignments, to be effective October 1, 2007, operation of the leases and wells will be transferred from UPDA Operators to Heartland Oil and Gas, Inc., the wholly owned operating subsidiary of Heartland Oil and Gas Corp. As a result, an additional $150,000 of operating capital will be released due to a reduction in the amount of security that must be maintained with the Texas Railroad Commission.
While it has been agreed that Heartland will assume responsibility for the payment of the loan from Sheridan Capital, the total consideration to be paid for these assignments will be determined after a fairness opinion is prepared. UPDA has invested in excess of $8 million in these properties.
For further information about Heartland Oil and Gas Corp., visit www.heartlandoilandgas.com
For further information on UPDA, visit www.universalpropertydevelopment.com
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:
Heartland Oil and Gas Corp.
Jack Baker, 561-630-2977
Investor Relations
info@heartlandoilandgas.com
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Source: Heartland Oil and Gas Corp.
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