United American Petroleum Corp. (OTCBB:UAPC) is
pleased to provide the investment community with a comprehensive
overview of our Company's ongoing projects, developments and
achievements over the course of the past year. We are extremely
satisfied with our business ventures to date and remain focused on
becoming a significant player in the oil and gas industry. Through
the efforts of our management team, employees, and partners, we
look forward to driving further growth, executing our business plan
and providing additional value for our shareholders.
"In the last year, we have taken important steps to better
position ourselves for substantial value creation," said Michael
Carey, United's Chief Executive Officer. "During 2011, we believe
we made significant strides and progress from an operational
perspective. Increases in reserves are a direct result of United's
commitment to its operating strategy of procuring working interests
in wells drilled to maximize the value of the underlying
hydrocarbon assets for our shareholders. We intend to continue to
expand our reserve base and increase production volumes in fiscal
year 2012 and beyond, by drilling our existing acreage, and through
acquisitions of additional producing and prospective properties.
Our experienced management team will continue to deploy capital in
projects with proven and efficient operators in strategic plays
that are expected to maximize rates-of-return to United."
Finishing Strong in 2011
Having expanded our strategic partnerships and extended our
portfolio of hydrocarbon plays, we continue to reach new revenue
milestones and build shareholder value. By increasing our reserve
base, we strengthened our presence in the oil and gas industry
while increasing our market exposure. In January 2011, we announced
the acquisition of certain oil and gas interests throughout Texas
from Patriot Minerals, which significantly increased drilling
activity in 2011.
In October and November 2011, we received cash infusions of a
total of $950,000 through a Note and Warrant Purchase Agreement,
which provides for additional financing up to $1,500,000, and aided
in accelerating our operations and provided flexibility for
development opportunities. We acquired the remaining 75 percent
working interest in an oil and gas lease in Frio County, Texas in
November. This acquisition resulted in United owning 100% working
interest in the lease, augmented our existing production and
provided the opportunity to exploit additional hydrocarbons on the
acreage acquired.
In December 2011, we acquired a 100 percent working interest in
our McKenzie lease in Pecos County, Texas for a purchase price of
$550,000 and 50,000 shares of restricted common stock. In 2010,
over 10 million barrels were produced in the area. With current
production on this lease, along with its booked reserves and
behind-the-pipe potential, we believe it will prove to be a key
asset for the Company. In combination with its current developments
and production, United believes it is well positioned for rapid
expansion throughout 2012.
Key Financials
We want to emphasize that even though 2011 was a year of
transition and achievement, we believe it was still a very strong
year for the Company operationally and financially. Highlights for
your review for the nine months ended September 30, 2011
include:
- Oil sales and gas sales were a combined $72,192
- Total Gross Revenues were $144,169
The oil sales were generated from our interest in the Lozano,
McKinney, Walker Smith, Welder, Bailey, Rogers, Fahn and Merrick
Davis leases. Our administrative income was a result of income
derived from oil and gas administrative fees charged by United
Operating, LLC to well owners for managing and accounting for the
development and production of their oil and gas property
interests.
Christian Negri, United's Chief Financial Officer stated, "2011
has provided United with multiple financing and acquisition
opportunities, which we used to fund and facilitate operations, and
provide growth for the Company and its shareholders. Furthermore,
we believe the foundation we have built in 2011 and additional
funding will unlock multiple projects throughout 2012, enabling
United to expand its operations and grow into a significant player
within Texas."
Oil and Gas Properties
In 2011, we continued to invest in our business. We are very
pleased with the continued developments of our proved producing
properties throughout Texas. Currently, we are focused on
maintaining and enhancing projects in Bastrop County, Frio County
and Gonzales County. Below, are the year's highlights for your
review by county:
Total Current Land Position: 33 total leases,
of which United is the operator of 22 and non-operator of 11; total
wells is 242; total acres is 7,839; total wells with working
interest is 178.
Bastrop County, Texas Projects
- December 19, 2011, the "New Drill" Gabriel #16 was drilled to a
depth of 799 ft.
- To date, we have drilled a 7 7/8 inch hole to a depth of 3,060
ft, which is about 150 ft from the prolific Serpentine
formation.
- Recent results from the mud log have been significant and
United is very pleased with its progress.
Production history from this area boasts over 11 million BO
recovered from the Thrall Field and Lyton Springs mounds, with a
total of 134,511 BO produced in 2010. Using the same oil recovery
as Exxon for its Hilbig field located in Bastrop County, United
estimates recovery could exceed 4 million BO of recoverable oil on
its Bastrop County lease, which is consistent with other pressure
data that indicate there could be 2 to 5 million barrels of
recoverable oil. Over 160 acres were identified with good magnetic
signatures which we believe indicates strong potential for Company
growth through the drill bit.
Frio Country, Texas Projects
- November 8, 2011, acquired remaining 75% working interest in
the Lozano Lease, which resulted in United owning 100% working
interest in the lease.
- The project lies within the Western Gulf province and consists
of 3 oil-producing wells.
- The wells sit on 110 acres, with 20 acre spacing, allowing
potential offset drilling locations.
Currently, this asset is being evaluated in an effort to
optimize and increase the current production. Historically, this
lease has produced an average of 12-15 bbls per day.
Gonzales County, Texas Projects
- Current well production is approximately ¼ bbls of oil every
few days due to paraffin and downhole issues which are symptomatic
of wells within the region.
- Workover on the Marcee Well, which consists of 112 acres,
scheduled to commence in early 2012 - Please note that in our
January 10, 2012 press release titled United American Petroleum
Corp. Provides Update on its Marcee Well in Gonzales County, Texas,
we inadvertently described our lease acreage on the Marcee Well as
being 186 acres. The actual acreage for the Marcee Well is 112
acres.
Successful completion of this well workover procedure is
estimated to increase well production from 1/4 bbls per day to
potentially 8-10 bbls a day.
Growth Position
This year and beyond, United plans to continue to exploit
currently acquired projects in several of the large shale plays,
particularly in the Serpentine, Austin Chalk, and Buda formations.
The Company plans to acquire additional oil-producing assets,
further develop existing wells both owned, operated, or a
combination of the two (throughout the state of Texas), and
remediate any existing wells which require work on the site. United
will also work to improve the production systems with the goal of
significantly increasing production and generating strong cash
flow.
Key Initiatives for 2012:
- Continue to exploit current assets through workovers and
drilling.
- Potential acquisition of proved producing properties with
opportunities for development.
- Acquisition of acreage in newly developing trends with
intentions of "proving up" areas of interest and booking
significant reserves in addition to daily production.
- Maintaining and optimizing currently owned assets and
evaluating the potential for tertiary means of additional
production.
- Continuing to build on operations through companies in need of
contract operating for the production, distribution and reporting
side of their business.
We will be announcing our fiscal year 2011 results in March and
look forward to sharing additional news with you in the coming
months.
We appreciate your continued support and interest in United
American Petroleum Corp.
For additional information regarding the Company's operations,
projects, management team and other valuable information, please
visit the Company's web site at www.unitedamericanpetroleum.com. To
be placed on the Company's master email list and receive future
press releases, progress reports and developments, please send an
email to ir@unitedamericanpetroleum.com or contact the Company at
855-PETROL-1.
American Petroleum Corp.
United American Petroleum Corp. is an independent exploration,
development, acquisition, production, and operating company
engaged in advanced exploration, drilling and completion
techniques to explore for, produce and develop domestic oil
and natural gas reserves. The Company's strategy
centers on increasing shareholder value through actively
pursuing and developing high-potential acquisitions for drilling
and production while maintaining a prudently managed balance
sheet. The Company's current projects are in
Texas; however, additional acquisitions may encompass active
plays throughout the United States.
The United American Petroleum logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=8834
Forward-looking Statements:
This press release contains forward-looking statements (as
defined in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended)
concerning future events and the Company's growth and business
strategy. Words such as "expects," "will," "intends," "plans,"
"believes," "anticipates," "hopes," "estimates," and variations on
such words and similar expressions are intended to identify
forward-looking statements. Although the Company believes that the
expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will
prove to have been correct. These statements involve known and
unknown risks and are based upon a number of assumptions and
estimates that are inherently subject to significant uncertainties
and contingencies, many of which are beyond the control of the
Company. Actual results may differ materially from those expressed
or implied by such forward-looking statements. Factors that
could cause actual results to differ materially include, but are
not limited to, changes in the Company's business; competitive
factors in the market(s) in which the Company operates; risks
associated with oil and gas operations in the United States; and
other factors listed from time to time in the Company's filings
with the Securities and Exchange Commission. The Company expressly
disclaims any obligations or undertaking to release publicly any
updates or revisions to any forward-looking statements contained
herein to reflect any change in the Company's expectations with
respect thereto or any change in events, conditions or
circumstances on which any statement is based.
Cautionary Note to U.S. Investors -- The United
States Securities and Exchange Commission permits oil and gas
companies, in their filings with the SEC, to disclose only proved
reserves that a company has demonstrated by actual production or
conclusive formation tests to be economically and legally
producible under existing economic and operating conditions. We use
certain terms in this press release, such as "probable,"
"possible," "recoverable" or "potential" reserves, among others,
that the SEC's guidelines strictly prohibit us from including in
filings with the SEC. Investors are urged to consider closely the
disclosure in our Annual Report on Form 10-K and our other filings
with the SEC.
CONTACT: United American Petroleum Corp.
Barry Gross
+1 855-PETROL-1
ir@unitedamericanpetroleum.com
info@unitedamericanpetroleum.com
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