Canyon Creek Preparing to Start Production at Palo Pinto Field

Canyon Creek Oil & Gas Inc.

Canyon Creek Oil & Gas has completed its work-over on 4 injector wells and is preparing to turn to sales 7 wells located on its Sanders lease in Palo Pinto County, Texas. Canyon Creek, a Universal Property Development and Acquisition Corporation subsidiary, continues its program to revitalize the oil and gas wells located on its leases in North Central Texas.

Palo Pinto Regular Field, located west of Mineral Wells, Texas, consists of 614 acres with 28 wells completed in the Strawn formation between 1200' and 1300'. Canyon Creek will use 4 injectors to implement a water flood to recover a significant amount of oil remaining in place. Work-over procedures completed by the Company included removing the existing tubing and packer from each well. The tubing was pressure tested to 7,000 psi for integrity and each packer was re-conditioned prior to re-inserting into the well. The Company's revitalization strategy for this lease provides for injecting about 1,000 barrels of water per day to maximize the effects of water flooding. Once the water flooding procedures take effect, production could exceed 1500 barrels of oil per month and 3,000 mcfg/m.

Canyon Creek has already received an injection permit on each of the 4 injector wells. To comply with the permitting procedures and requirements, the Company has scheduled a meeting with the Railroad Commission of Texas for a casing pressure test on each well today.

Universal Property Development and Acquisition Corporation (OTCBB:UPDA - News) focuses on the acquisition and development of proven oil and natural gas reserves and other energy opportunities through the creation of joint ventures with under-funded owners of mineral leases and cutting-edge technologies.

Canyon Creek Oil & Gas Inc. was formed in July 2005 as a joint venture corporation for the purpose of acquiring currently producing oil and gas properties, low risk drilling prospects and existing wells in need of state-of-the-art technology to improve profitability. Canyon Creek Oil and Gas Inc. now has over 60 wells located on more than 2,000 acres in the Fort Worth basin. The Company has also acquired properties located in Inez Field in Victoria County and Giddings Gas Field in Fayette County, Texas. Canyon Creek continues a revitalization program on all of its properties in order to improve production and bring more wells on line.


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