Catlin Oil Set to Close Palo Pinto Acquisition
Catlin Oil and Gas, a subsidiary of Universal Property Development and Acquisition Corporation is preparing to complete the acquisition of several leases and more than 10 producing wells located in Palo Pinto County, Texas. These wells are currently producing natural gas at a rate approaching 1000 mcf/day. In addition, many of the wells have been drilled into the Barnett Shale and have shown to be productive from those levels.
This acquisition will include nearly 94% of the working interest in the wells and leases and over 72% of the net revenue interest.
"These wells made about 25,000 mcfg in June," reports UPDA Petroleum Engineer Brian Clancy. "That's over $182,000 in gross revenue at current prices. In addition, the logs and tests from the Barnett Shale zones are very promising and with the resources we have available from our Continental Fuels, Inc. (OTCBB: CFUL - News; FWB: CIQB) subsidiary, we are in a very good position to handle the increased liquids that will be generated by producing from the Barnett Shale -- particularly in light of the significant increase in natural gas production we expect to realize from those zones."
The acquisition has a total purchase price of $4.6 million with UPDA contributing $800,000 in restricted common stock and $350,000 cash. The remainder of the cash portion of the price is being financed by Sheridan Asset Management, LLC of White Plains, New York in a conventional 3 year loan.
- UPDA's Year-End Boasts: Acquisitions Galore, from Aztec to Heartland (Jan 02)
- Catlin Oil Set to Close Palo Pinto Acquisition (Aug 06)
- UPDA Agrees to Buy Well Testing Vendor (Dec 18)