United Heritage Increases Production at Wardlaw Field

United Heritage Corporation provided an update on progress using its nitrogen injection process at the Wardlaw Field located in Edwards County, Texas. After testing, five wells have been placed into full 24-hour production and were averaging 2.16 BOPD to 4.05 BOPD, a substantial increase in production versus prior levels of 0.29 BOPD to 0.58 BOPD before the nitrogen process was utilized.

It is expected that individual well testing may continue for an additional 60 to 90 days. Substantial production is not anticipated from this testing process because of low pressure. This is an important part of the pilot project because the information obtained may be used for staging wells into full production and further development of the entire productive acreage in the future.

"We are extremely pleased that the nitrogen injection process is yielding such impressive results," said Walter G. Mize, Chairman and CEO of United Heritage Corporation. "Fluid is continually being pushed to the wellbores by the injection process. This indicates that production should increase as the pressure increases. More wells will be put on full production as pressure increases further. We believe this new technique will enable us to increase production substantially."

A total of 32 wells have been equipped for production with either submersible pumps or progressive cavity pumps. 4 of these wells have been equipped for injection. The total surface area in the pilot project encompasses approximately 202 acres. An estimated 48%, or 97 acres, has experienced an increase in bottom hole pressure. The "gas caps" in the structural highs have been developed. Pressures on the injection wells remain between 25 psi and 40 psi. Injection will continue in these areas in an effort to increase reservoir pressure to a goal of 60 psi. Pressure is continuing to build off the structural highs.

Production tests on the majority of the low pressure wells are continuing in an effort to obtain information about the capabilities of the different down hole pumps we are using and how the wells respond to different pressures. To date, wells with progressive cavity pumps have out performed the wells with submersible pumps due to their ability to move "grit" that enters the wellbore along with the fluid. However, the company has devised a method to screen out the "grit" for the submersible pumps. Implementing this method will allow United Heritage Corporation to fully benefit from the entire column of fluid that accumulates in the wellbores, thus increasing daily production.

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