UPDA Three Point Strategy to Build Shareholder Value: Contract with an Experienced Lease Operator to Increase Production & Re...
In an effort to rebuild the shareholder value, Universal Property Development and Acquisition (Pink Sheets: UPDV) has adopted a three point strategy which includes the following:
1. We have entered into negotiations with an industry partner to operate all of our oil and gas leases in Texas and Kansas. This partner will advise us on the best approach to a proposed Barnett Shale drilling program in North Texas and undertake operation of existing wells in order to improve maintenance and increase production. These actions will reduce operating costs, increase revenues and efficiency and release key capital for application to operating costs or fund new growth.
2. We are taking steps to reduce our debt by selling businesses and assets that are capital intensive and generate little to the bottom line. Recently, our crude hauling and purchasing business received a proposal to sell the trucking side of the business while maintaining the crude purchasing operations. Our Exploration and Production unit also received an offer to farm out the deep rights in North Texas which included an up-front payment and revenue sharing from new wells and a proposal for a new drilling program in our coalbed methane fields in Kansas. We have also been approached by parties interested in the acquisition of the petroleum storage facilities in Brownsville. These divestments may yield $5-$10 million, which will be used to reduce the long term debt of the company.
3. We have been exploring possibilities with other reporting companies, including companies in our business sector, focused on joint opportunities to return UPDA to fully reporting status.
This three point strategy will result in increased revenues, decreased costs, the elimination of long term debt and a return to transparent business operations.
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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