The Board and Management of Universal Property Development and Acquisition Corporation 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. as our exploration and production subsidiary, incubated Continental Fuels, Inc. 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.
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.
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 third quarter of this year.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.
In 2007, Aztec Wells Services 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.
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