Florida-based Universal Property Development and Acquisition Corporation and Sundial Resources of Graham, Texas,
have executed a memorandum of understanding to develop 520
acres on three leases in Young County, Texas.
Pursuant to the MOU, UPDA will provide funding for the workover of the 17 wells on the
property. As set forth in the MOU, UPDA will establish and own 75% of a
joint venture corporation, tentatively known as Texas Energy, Inc.
Sundial will assign its 100% working interest in the leases and wells
to the joint venture corporation. It will manage the workover
procedures and will operate the wells upon completion.
"Sundial brings a great amount of experience to this project," said Chris McCauley,
UPDA Vice President. "We expect this joint venture will expand to
other properties that Sundial has already presented for review. This
joint venture exemplifies our continued confidence in the Texas market
complimentary to our Canyon Creek venture."
UPDA anticipates that this most workover project will begin as soon as the lease assignments are recorded and will
require 30-45 days for completion.