UPDA Agrees to Buy Well Testing Vendor
Universal Property Development and Acquisition Corporation subsidiary, Ambient Wells Services, Inc. has reached an agreement to acquire 80% of VALA de Mexico, a vendor approved by PEMEX and Halliburton to provide well testing services in Mexico.
Under the terms of the agreement, UPDA will provide $500,000.00 in order that VALA may acquire certain well testing equipment known as "well packages". With the acquisition of this equipment, VALA expects to negotiate agreements with both Halliburton and PEMEX to determine the best method to bring new wells into production.
"Once a well has been completed, this equipment will allow VALA to test the output in order to determine its quality and content and recommend the appropriate surface equipment necessary to properly produce the well," says Agustin Soto, President of VALA. "There are very few companies providing this service in Mexico and we are confident that we will be able to negotiate sizeable contracts with both Halliburton and PEMEX."
As a result of this acquisition, UPDA, through Ambient, will expand its well services division in order to generate additional revenues from sources other than oil and gas and protect against the potential volatility of price and production. It also furthers UPDA's plan to vertically expand its presence in the industry.
"We believe the expansion of our well services arm is a perfect complement to our existing business model," said UPDA Vice President Chris McCauley. "It allows UPDA to expand its presence both in the U.S. market and internationally. It also provides us with great flexibility for further vertical expansion within the industry."
Universal Property Development and Acquisition Corporation 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.
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Company: Pemex more info
Operates 45 Offshore Rigs
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Company: Universal Property Development and Acquisition Corp. more info
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