UPDA Board reports to Shareholders
Wednesday January 2, 5:20 am ET
SAN ANTONIO--(BUSINESS WIRE)--The Board and Management of Universal Property Development and Acquisition Corporation (OTC BB: UPDA - News) www.universalpropertydevelopment.com ) is proud to report that 2007 was the year the UPDA mainstreamed its business operations into three distinct subsidiaries, resulting in greater efficiencies and expanding opportunities.
In the first half of the year, we acquired control of two public companies and purchased additional valuable assets. As the year progressed, we established Heartland Oil and Gas Corp. (OTC BB: HTOG - News) (www.heartlandoilandgas.com) as our exploration and production subsidiary, incubated Continental Fuels, Inc. (OTC BB: CFUL - News) (www.continentalfuels.com) to serve as our subsidiary responsible for marketing, trading and terminal operations and created Aztec Well Services, Inc. to provide oil field and well services.
Heartland Oil and Gas Corp.
In April 2007, we completed the acquisition of Heartland Oil and Gas Corp. with its existing production and close to a million acres under lease in Kansas. Since that time, Heartland has drilled 21 additional wells. By the end of the year, 10 of those wells had been completed and connected, nearly tripling Heartland’s production in Kansas.
Later in the year, UPDA continued the establishment of Heartland as its E & P subsidiary by transferring 13 producing wells in Palo Pinto County, Texas, and UPDA’s 65 wells and approx 3000 acres in Jack County, to Heartland.
As UPDA expanded its interest in Heartland to over 80%, Heartland’s revenues have increased from $35,000 month to close to $300,000 and production continues to expand. Furthermore, Heartland has built a very capable team of Geologists, Petroleum Engineers and Technicians to plan the next phase of expansion and drilling programs and advance the company to a higher level.
Continental Fuels, Inc.
Also in April 2007, UPDA acquired over 80% ownership of Continental Fuels, Inc. and transferred to Continental its facilities at the International Port of Brownsville, Texas and the light crude trading business operating out of those facilities.
In May 2007, the Management of Continental increased the condensate business from 15,000 BBL per month to over 60,000 BBL per month in June 2007, and monthly sales averaged close to $4 million per month in the 3rd quarter of this year.
In December 2007, Continental completed the acquisition of Geer Tank Trucks (www.geertanktrucks.com), an oil purchasing and transport company established in North Texas in 1945 currently generating $50 million in annual revenue.
Continental’s management has assembled a very talented team and grown the company’s assets and revenues very successfully in the 8 months since its acquisition by UPDA. Based upon historical numbers, as Continental enters the New Year, it is generating approximately $4 million per month from the Brownsville Terminal and another $4 million per month from Geer.
Aztec Well Services, Inc.
In June 2007 Aztec Wells Services, Inc., a wholly owned, privately held subsidiary of UPDA, completed the acquisition of certain assets and equipment which included drilling rigs, pipeline trenching equipment and other machinery and equipment vital for our operations. In addition to this equipment and machinery, Aztec has assembled a capable management team and field personnel with extensive experience in all aspects of field operations and well drilling and management in UPDA’s geographical areas of interest.
In 2007, Aztec drilled and completed 21 wells for Heartland of which 10 wells are connected and 11 will be connected after the pipeline is in place. In addition, Aztec has been assisting in the improvement of the fields in Texas, resulting in significant cost controls and production expansion. In 2008, Aztec intends to increase the pace of drilling operations for Heartland and expand its third party contracts in both Kansas and Texas.
As we look forward, we are very optimistic about the future, the energy sector is still robust and our opportunities for expansion are very promising. In 2007, the growth of our business and the development of our subsidiaries transformed UPDA into an Energy Holding and Incubation company. UPDA now focuses more on M & A activities to assist our subsidiaries to expand assets and revenue. In addition, UPDA provides oversight, financial, legal and technical management in order to build value and to prepare the subsidiaries to move to bigger exchanges.
As demonstrated by our growth and acquisition strategies, the UPDA Board and Management are committed to building shareholders’ value. Although the value that we have created in our subsidiaries is yet to be realized in the value of UPDA, we remain confident of success as we enter 2008.
About UPDA
Universal Property Development and Acquisition Corporation is focused on identifying oil & gas companies with proven energy reserves and innovative alternative energy companies with proven technologies. Once identified, the viability and potential of the targeted company is subjected to a rigorous multi-step review and investigation.
First, the potential company's financial records, legal standing and geological or technological potential are thoroughly examined by the UPDA Due Diligence Committee. If the candidate passes this test, a recommendation is made to the Acquisition Committee which conducts initial negotiations and presents its conclusions to the CEO and Board of Directors who will secure the acquisition.
Once the acquisition process is complete, the acquired company becomes a subsidiary of UPDA and the incubation process begins. UPDA provides the subsidiary with financial, legal and scientific support in order to develop its assets and perfect its innovations allowing its management to concentrate on its business plan and operational objectives.
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, 561-630-2977
Investor Relations
info@updac.com |
