UPDA Negotiating with EOG Resources to Farm Out Barnett Shale Drilling Program on 2700 Acres in North Texas – Natural Gas R...
May 26 2009 - 9:09AM
Business Wire
Universal Property Development and Acquisition Corporation (Pink
Sheets: UPDV) has entered negotiations with representatives of EOG
Resources, Inc. (NYSE: EOG) to farm out the drilling of 13 new
Barnett Shale natural gas wells on property owned by UPDA in North
Texas. Initial negotiations indicate that the transaction will
include an upfront cash payment from EOG and a royalty retained by
UPDA.
�EOG has shared their estimated reserve calculations with us and
indicate they believe these new wells will produce a minimum of 6.5
million MCF of natural gas,� reports UPDA CEO Tim Brink. �At an
average price of $4.00 per MCF, that is at least $26 million in
revenue we will be sharing. In the proposed transaction, EOG will
pay us cash for the acreage, pay all of the expenses for drilling
and we will retain an overriding royalty in the production. We will
also retain all of the production from our existing wells on the
property. Although the final numbers have not yet been negotiated,
this is a no lose proposition for UPDA.�
Statements contained in this press release that are not based
upon current or historical fact are forward-looking in nature. Such
forward-looking statements reflect the current views of management
with respect to future events and are subject to certain risks,
uncertainties, and assumptions. Should one or more of these risks
or uncertainties materialize or should underlying assumptions prove
incorrect, actual results may vary materially from those described
herein as anticipated, believed, estimated, expected, or described
pursuant to similar expressions.
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