United Heritage Sees Positive Results From Nitrogen Injectio

United Heritage Corporation reported positive preliminary results from its injection of nitrogen for the attempted recovery of a greater portion of the "oil in place reserves" under its leases in the Val Verde Basin located in Texas. This recovery technique may unlock the potential of the Company's Texas property, which has approximately 168 million barrels of oil remaining in place. The Company expects to sell its first oil production this month.

The reservoir yielded positive results to the injection of nitrogen, resulting in a gas cap forming. This enabled the Company to remove the "attic oil", which would otherwise be missed during production. Bottom hole pressures in the structural highs have risen from 0 psi to approximately 35 psi after just three weeks of injection. Maximum injection will continue until an approximate bottom hole pressure of 60 psi is experienced, at which time the pressure will be maintained for the entire production phase.

"We are very pleased by the results to date," said Walter Mize, United Heritage Corporation's Chief Executive Officer. "This is exactly what our geological and engineering studies indicated would happen in the first phase of the project. We believe we are now well on our way to realizing the potential from our extensive holdings in the Val Verde area."

The Company also reported that injection efficiency increased from 75% to 79.5%, while injecting approximately 72,000 scf/d to 76,000 scf/d of nitrogen. Also, electric service to the field is now approximately 80% complete, with the addition of new poles, line transformers and meter loops. Production tests on a few selected low pressure producers have indicated a positive response to the injection with production figures as high as 2.86 BOPD and 9.25 BWPD. The full production phase of the project will not commence until the gas cap is fully developed and there is adequate bottom hole pressure. These tests were conducted to obtain well information for additional near-term production activities.