UC Hub Inks JV Deal, Funds First Oil Well
UC Hub Group has formally signed a JV deal with Rector Drilling who own producing oil wells, drilling rigs, leases, and equipment. This deal was announced in a Letter of Intent on February 2009 and management has recently traveled to the drilling location and consummated the 50-50 deal. UC Hub plans on forming a long term relationship with Rector Drilling contingent upon the success of such drilling sites as Rector has 40 years of drilling experience and owns many wells and a substantial amount of drilling equipment.
Crude Prices according to the AP have been between $59 and $75 with a close on Wednesday of $70.10 a barrel. The Company believes that strategically aligning with a group with expertise in the oil and gas business and who own producing oil wells, rigs, equipment and leases, will position the Company to strike quickly in the Oil and Gas industry, if the market and success quotients warrant such. This is a tactical opportunity for UC Hub to leverage expertise, equipment, and leases with minimal risk and the potential of revenue.
The first funded drilling site has been targeted and is expected to be a shallow well of not more than 2000 feet. Rector has successfully drilled in the area prior to this well and believes this JV Well has potential for multiple pay zones. Permitting has been applied for and parties expect to report the results of such soon. The quality of oil is considered sweet with historic distribution and refining partners in place. UC Hub Group, Inc. expects to announce in October 2009 the actual permits, and drilling results of this first JV Oil Well within the first week of October.